Finance News India
Finance News India provides in-depth coverage of the infrastructure finance sector, including debt/bond issues, mergers, and acquisitions, and loans and credit. It also provides information on primary and secondary issues, joint ventures/agreements, and financial results for companies in the power, telecom, oil & gas, transportation, housing, and other sectors.
Indian retail real estate market is expected to grow by 28% to 82 million square feet by 2023
The Indian retail real estate market is expected to increase by 28% to 82 million square feet over the next five years. Currently, the market is dominated by Bangalore and Delhi. However, Hyderabad is set to add more than three million square feet by 2023.
This growth is expected to be attributed to recovering commodity prices. While established markets are expected to grow at a steady rate during this period, emerging markets are expected to grow at a faster rate. With the growth of both industrial and consumer markets, the Indian retail real estate market is expected to flourish in the coming years.
According to Knight Frank, India’s retail market is expected to reach $1.1-1.3 trillion by 2025. In 2019, it was valued at $0.7 trillion. With income growth and urbanization, the market is expected to grow at a nine to 11 percent CAGR. With a steady increase in consumer spending, retail property is becoming a smart investment. Its high rental values and price appreciation make it the ideal choice for an investment in the country.
The Indian real estate market is projected to recover from this shock. The finance ministry has previously estimated that the economy will grow by around 8% to 8.5% between 2021 and 2023. The recovery in commodity prices will also aid the growth of the real estate market.
The Indian real estate industry is predicted to grow by $1 trillion by 2030 and contribute 13% of the nation’s GDP by 2025. Several factors are driving the growth of the sector, including the rise of nuclear families and socio-demographic factors.
In recent years, India’s real estate market has suffered from the impact of the COVID-19 pandemic, but now the market is showing signs of rebound. According to RBSA Advisors, India’s real estate market is expected to grow at a 15% CAGR over the next five years. The market currently makes up about 80 percent of the country’s real estate market, and the economy continues to recover from the effects of the pandemic. The retail sector contributes to one-third of the GDP, and residential real estate accounts for the other five percent. RBSA Advisors expects that residential prices will increase as the economy recovers.
The Delhi-NCR region has a substantial demand for real estate in all price ranges. New projects such as the Jewar Airport have also helped the market. They offer superior construction and vastly improved facilities. However, buyers should note that these new developments are far from the city center.