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Indian real estate sector to reach USD 180 billion by 2020 – Report

Indian real estate sector to reach USD 180 billion by 2020 says a report

Sector’s contribution to GDP to almost double to more than 11% by 2020

The Indian real estate sector is likely to touch a market size of USD 180 billion by 2020 from USD 126 billion in 2015. This is according to a joint report by realty developers’ body Confederation of Real Estate Developers’ Association of India (CREDAI) and JLL India. The report says that the housing sector’s contribution to the Indian GDP is expected to almost double to more than 11 percent by 2020. Regulatory reforms, steady demand generated through rapid urbanization, rising household income and the emergence of affordable housing and nuclear housing are expected to be key drivers of growth for the sector.

Investment inflows in the housing sector since 2014 have been Rs 590 billion, about 47 percent of the total invested money in real estate, it said.

JLL also projected that the housing sector’s contribution to the Indian GDP is expected to almost double to more than 11 percent by 2020 up from estimated 5-6 percent.

Listing the seven trends that would transform the real estate sector, JLL said the new law RERA is expected to consolidate the Indian Real Estate industry with an elimination of unscrupulous developers.

Cities like Nagpur, Kochi, Chandigarh and Patna could be growth centres.

The recent relaxation in the FDI has provided a huge boost to investment in the industry.

“Private equity and debt investments in real estate increased by 12% year-on-year across 79 transactions in 2017,” the report said, adding that affordable housing and warehousing segments would attract huge investment going forward.

The report released by the Confederation of Real Estate Developers’ Associations of India (CREDAI) jointly with international real estate consultant JLL, said RERA, GST, FDI policy, affordable housing, real estate investment trust, technology and alternative asset classes are the major altering trends that would transform the Indian realty sector in the near future.

“Finance for the land, rationalization of GST, single window clearance and clarification on the credit linked subsidy scheme (CLSS) are the four major issues that need to be looked into in the affordable housing segment,” said Jaxay Shah, President, CREDAI.

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