Indian real estate market poises to touch Rs 65,000 cr by 2024

The Indian real estate (RE) market is poised to touch Rs 65,000 crores by 2024, and by 2025, this sector is likely to contribute to 13% of the country's gross domestic product (GDP), according to the CIRIL report.

According to the report, the size of the RE market was Rs 12,000 crore in 2019.

In 2022, the market looked bullish while demand is revving across all categories despite fears related to the Omicron crisis, as per the report.

The report said offices with the improved technology-driven ecosystem in the workplace will be in demand, and developers are funding technology and digital channels to reach out to the consumers.

The report said co-working space has emerged as a sustainable business model for corporates who want to remain flexible on cost components in the face of a possible resurgence of Covid-19 caseloads.

From 2021 to 2030, India's retail industry is projected to increase at a slower pace of 9% and is expected to touch $1400 billion by 2026.

CIRIL said that Indians are taking to online retail in a big way, and by 2024, India's e-commerce industry is expected to touch $111 billion, driven by mobile shopping.

The warehousing RE sector will continue to rise as e-commerce has gained traction, and the transactions in this sector are projected to increase at a compounded annual growth rate (CAGR) of 20% in FY 2023, the report said.

The e-commerce part of the total warehousing transactions will grow to 36% in FY 2023.

According to the Department for Promotion of Industry and Internal Trade (DPIIT), FDI equity inflow stood at $547.2 billion between April 2000 and June 2021, showing that the government's efforts to enhance ease of doing business and relaxing foreign direct investment (FDI) norms have yielded results.

The report said foreign portfolio investment (FPI) has been one of the largest drivers of India's financial markets, while institutional investors are likely to continue investing in the Indian RE with more funds.

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