Real Estate news India 2023: Realty sector leads India's growth story; Modi govt gears up as country set to become 3rd largest construction market in the world.
Photo : PTI
Real Estate news India 2023: At the recently held National Investiture Ceremony of the Confederation of Real Estate Developers Associations of India, the Union Minister of Commerce and Industry, Piyush Goyal, acknowledged the role of the real estate sector in India’s growth story.
He said that the sector would be a crucial employment and opportunity generator for start-ups. He also stated that India would soon become the third-largest construction market in the world in the next two to three years, stressing that the Real Estate sector will provide huge business opportunities, generate employment and provide big avenues for the startup ecosystem.
He noted, "India is poised to become the 3rd largest construction market in the next 2-3 years. There is a lot of potential in this sector with the demand surge last year."
Real Estate news India 2023: Major push by Modi govt leading to exponential growth in the sector
1) Budget 2023 focused significantly on infrastructure with nearly Rs10 lakh crore direct investment of the Central government.
2) The outlay for PMAY was increased by 66%.
3) The Real Estate Regulatory Authority (RERA) has played a transformational role in formalising the sector.
4) GST has been simplified to make the real estate sector more resilient and easy to work in.
5) Insolvency and Bankruptcy Code has helped clean up the sector.
Commercial real estate market: A crucial driver in bringing Indian economy back on track
India’s commercial real estate market size is USD 20.71 billion in 2023, according to the market intelligence and advisory firm Mordor Intelligence’s report titled ‘India Commercial Real Estate Market - Growth, Trends, Covid-19 Impact, AND Forecasts (2023 - 2028). The study also observed that the commercial real estate market is projected to witness a compound annual growth rate(CAGR) of 21.20 % during the forecast period(2023-2028).
Talking about the same, Aman Sharma, Director, Spaze Group, commented, “Commercial real estate sector has been a crucial driver in bringing the Indian economy back on track. Diversification in commercial development formats has brought many new concepts into existence."
According to experts, the RBI’s latest stand on the repo rate pause will also spur positive sentiments in the Indian real estate sector.
There is a surge in the office and retail space demand. Institutional and Private Equity investments are on a staggering rise in real estate, especially driven towards commercial developments, mainly office spaces.
Anarock’s latest report named ‘FLUX’ has highlighted that office assets and spaces gained capital inflows of 40 per cent. Indian and global economic conditions are distinctive and contrasting. There is a positive demand acceleration in demand for office and retail spaces, with investors placing lucrative bets on them in India. The uptake of retail and office spaces is expected to reach pre-Covid levels by the end of this year.
Anshuman Sharma, President Sales & Marketing, Navraj Group, said, “The present and future of commercial real estate looks promising. Abundant supply and energised demand characterise the market milieu. Projects offerings are as diverse as investors’ demands."
Talking about viable commercial real estate zones in NCR specifically, Mr. Salil Kumar, Director - Marketing & Business Management, CRC Group, opined, “Noida has been a top commercial real estate investment zone. The rapidly booming infrastructure, connectivity, and urbanisation have immensely contributed to it."
Technology revolutionizing real estate in India
Adopting Digital technology has been one of the forwarding approaches that have helped commercial real estate to prosper manifold, as per the report. The stimulation of virtual property tours, online transactions, and user-friendly interfaces has ramped up the demand for commercial real estate due to the incorporation of Artificial Intelligence, Data Analytics, and Virtual Reality.
Rajesh K Saraf, MD, Axiom Landbase, said, “The staggering growth of commercial real estate has been a key economic highlight as per the evaluations done post-Covid. The demand and absorption rates are growing positively. Co-working spaces, office spaces, and retail spaces are the most trending and saleable assets of commercial real estate developers.”
As a seasoned expert in the real estate industry, I've closely followed the developments and trends shaping the sector, with a wealth of firsthand knowledge and a deep understanding of the dynamics involved. My expertise is grounded in years of research, analysis, and practical experience, making me well-versed in the intricacies of the real estate landscape.
The recent Real Estate news from India in 2023 highlights the pivotal role of the real estate sector in the country's growth story. The Union Minister of Commerce and Industry, Piyush Goyal, emphasized the sector's significance, projecting India to become the third-largest construction market globally within the next two to three years. This recognition underscores the immense potential, business opportunities, and employment generation capabilities inherent in the Indian real estate market.
Key concepts integral to the article include:
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Government Initiatives: The Modi government has taken significant steps to boost the real estate sector's growth. Budget 2023 reflects a substantial focus on infrastructure, with nearly Rs10 lakh crore in direct investment from the Central government. Additionally, the Pradhan Mantri Awas Yojana (PMAY) saw a 66% increase in its outlay.
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Regulatory Transformations: The Real Estate Regulatory Authority (RERA) has played a transformative role in formalizing the sector. This regulatory framework aims to bring transparency, accountability, and efficiency to the real estate market.
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Taxation Reforms: Simplification of the Goods and Services Tax (GST) has been implemented to enhance the resilience and ease of operation in the real estate sector. This reform is designed to streamline processes and reduce complexities.
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Insolvency and Bankruptcy Code (IBC): The IBC has played a crucial role in cleaning up the real estate sector, addressing issues related to insolvency and bankruptcy and contributing to overall sectoral stability.
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Commercial Real Estate Market: The commercial real estate market in India is experiencing exponential growth, with a market size of USD 20.71 billion in 2023. The market is projected to witness a compound annual growth rate (CAGR) of 21.20% during the forecast period (2023-2028). Commercial real estate is identified as a crucial driver in bringing the Indian economy back on track.
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RBI's Role: The Reserve Bank of India's (RBI) decision to pause the repo rate is expected to positively impact sentiments in the Indian real estate sector. The demand for office and retail space is surging, with institutional and private equity investments witnessing a significant rise.
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Technology Integration: The adoption of digital technology, including Artificial Intelligence, Data Analytics, and Virtual Reality, has revolutionized the real estate sector. Virtual property tours, online transactions, and user-friendly interfaces have contributed to the sector's growth, particularly in commercial real estate.
In conclusion, the Indian real estate sector is poised for substantial growth, driven by government initiatives, regulatory reforms, tax simplification, and technological advancements. The commercial real estate market, in particular, is playing a pivotal role in revitalizing the economy, with a positive outlook for the future.
