The Indian Real Estate Industry is Expected to Reach USD 1 trillion by 2030 According to RBSA Advisors

According to RBSA Advisors, India's real estate market is predicted to develop at a 15% compound annual growth rate from $60 billion in 2010 to $1,000 billion by 2030, accounting for 13% of the country's GDP by 2025. 

According to its research, 'The Outlook of the Indian Real Estate Sector,' the Indian real estate market is exhibiting significant indications of recovery as the economy continues to recover from the epidemic. The residential component of the Indian real estate industry (which accounts for around 3-5 percent of GDP) accounts for 80 percent of the market. According to the research, the effect on residential market traction in H1 2021 was seen as a speed bump rather than a serious impediment.

Following a protracted period of decline and then stabilisation, home prices are projected to resume their upward trend. In 2022, the country's residential property market is predicted to rise by 5% in terms of capital value. As things return to normal, residential sales volumes increased by 67 percent year on year to 99,416 units, while unsold inventories decreased marginally, by 1% year on year, to 441,742 units in H1 2021. 

The government's emphasis on affordable housing is projected to bolster this sector even further. By 2023, the organised retail real estate industry is predicted to grow by 28% to 82 million square feet. In the first half of 2021, India invested $2.4 billion in real estate assets, a 52 percent increase year on year. The enthusiasm continued when the Union Budget 2022 promised a Rs 20,000 crore investment in Gati Shakti infrastructure projects. 

In FY23, the Pradhan Mantri Awas Yojana (PMAY) would cost Rs 48,000 crore for urban and rural housing. The real estate market is projected to recover from the shock throughout the projection period, since it is a 'black swan' occurrence unrelated to continuing or fundamental market or global economic issues.

Since 2021, 41 investors have made 157 investments totaling $5,281 million. 

SWAMIH Fund, Motilal Oswal, HDFC Venture, Altico Capital, ASK Group, Piramal Enterprises, KKR, Piramal Fund, Xander Finance, and BlackSoil Realty were among the 10 deals last year. SWAMIH approved 95 projects totaling more than Rs 9,500 crore in October 2021, which would result in the completion of about 57,700 dwellings. Motilal Oswal Real Estate's newest fund offering aims to raise Rs 1,250 crore. 

HDFC property fund is one of India's biggest private equity real estate funds, with a total capital commitment of Rs 7,200 crore spread over four firms. According to the International Monetary Fund (IMF), global real GDP growth will average 3.6 percent between 2021 and 2023. 

Recovering commodity prices after a prolonged period of downturn is also projected to boost the real estate market's expansion. Developed economies are likewise predicted to expand at a steady pace during the projection period. 

Additionally, developing markets are likely to expand at a somewhat quicker rate than established countries during the projection period.

Rajeev R Shah, MD & CEO of RBSA Advisors, said, "As we gradually but steadily return to normalcy, not the new normal, the Indian real estate market is also showing significant indications of recovery. While 2021 saw an annual Private Equity transaction value of USD 3.6 billion (declared value) in India, the future years indicate significant potential, with investment activity growing 72 percent year on year. The billboards have returned, and as banks continue to entice consumers with very favourable financing conditions, we anticipate the real estate market to do quite well in the near future".