Indian real estate market to grow to Rs 65,000 crore by 2040: CIRIL

According to a report by consultancy firm CIRIL, the Indian real estate (RE) market is predicted to reach Rs 65,000 crore (US$ 8.48 billion) by 2024, and this sector is expected to contribute 13% of the country's GDP by 2025.  Despite concerns about the Omicron problem, the market in 2022 appeared to be bullish, with demand growing across all categories.

In terms of commercial real estate offices with a more technology-driven workplace ecosystem will be in high demand, and developers are investing in technology and digital channels to reach out to customers. Co-working space has emerged as a viable business model for companies that want to maintain cost flexibility in the face of a likely comeback of Covid caseloads. Indians are embracing online retail in a big manner, and the country's e-commerce market is expected to reach US$ 111 billion by 2024, fuelled by mobile shopping.

The warehouse RE sector will continue to grow as e-commerce gains pace, with transactions expected to grow at a CAGR of 20% in FY23. In FY23, the proportion of e-commerce transactions in total warehousing transactions will rise to 36%.

FDI equity inflows totalled US$ 547.2 billion between April 2000-June 2021, according to the Department for Promotion of Industry and Internal Trade (DPIIT), suggesting that the government's efforts to increase ease of doing business and relax FDI restrictions have yielded dividends. Foreign portfolio investment (FPI) has been one of the most important drivers of India's financial markets, and institutional investors are projected to continue investing in Indian real estate with more funds.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.