India's real estate sector is projected to reach $180 billion by 2020 from $126 billion in 2015, according to a report by CREDAI and JLL. The report states that the investment inflows in the housing sector since 2014 have been Rs 590 billion, about 47 per cent of the total invested money in real estate.
The report claimed that the contribution of the residential segment to the GDP would almost double to 11 per cent by 2020. It further traces seven trends that will change the way real estate business will happen in the future in India. Regulatory reforms, steady demand generated through rapid urbanisation, rising household income and the emergence of affordable and nuclear housing are some of the key drivers of growth for the sector, as per the report.
Listing the seven trends that would transform the real estate sector, according to JLL, RERA is expected to consolidate the Indian real estate industry with elimination of unscrupulous developers. The sales figures are projected to improve with RERA bound to rebuild the trust deficit between buyers and developers.
As per the prediction by JLL, cities such as Nagpur, Kochi, Chandigarh and Patna, apart from the eight major cities are probable growth centres. The affordable housing segment, which has been granted infrastructure status, is expected to create avenues for developers.