India’s Real Estate Sector Expected to Grow by 10% in the Coming Years, According to an International Consultant’s Report


India’s Real Estate Sector Expected to Grow by 10% in the Coming Years, According to an International Consultant’s Report”
India’s real estate sector is experiencing significant growth, particularly in the housing market. A new report highlights the potential for substantial expansion in the coming years.
Housing Sector’s Future Growth Projections
According to the report, India’s housing sector is expected to grow at a Compounded Annual Growth Rate (CAGR) of 10% over the next 3 to 5 years. This promising growth is fueled by both public and private investments.
Investment Surge in Capital Expenditure
Investment firm Jefferies has noted that government capital expenditure has tripled over the past five years. Additionally, with government support, the private sector has also ramped up its capital investments. This collaboration between public and private sectors is expected to drive growth in the housing market.
Economic Impact of Increased Capital Expenditure
The report highlights that this rise in capital expenditure has played a pivotal role in boosting India’s economic growth over the past three years. The economic outlook for the coming years remains positive, indicating sustained growth in various sectors, including real estate.
Breakdown of Investment Contributions
In the context of India’s investment landscape, the contribution from corporate capital investments, housing, and government expenditure stands at 35%, 40%, and 25% respectively. The increasing number of domestic investors has further boosted the stock market, with retail investors reaching record-high participation.
Retail Investment Surge in the Stock Market
Domestic investors are investing approximately $7 billion per month in mutual funds and stocks. However, the report warns that due to high market valuations, there could be a slight dip in market activity in the future.
Post-Pandemic Real Estate Demand
Following the COVID-19 pandemic, both large and small cities in India have seen a significant increase in real estate demand. This surge has benefited the economy and continues to drive growth in the sector.
CapitaLand’s Expansion in India
Last week, *CapitaLand Investment Limited (CLI), a Singapore-based real estate management firm, announced plans to double its *funds under management (FUM) in India by 2028. CLI’s FUM is expected to rise from 7.4 billion Singapore dollars to 14.8 billion Singapore dollars, which is approximately ₹90,280 crores.
Economic Forecast for 2024-2028
According to the *International Monetary Fund (IMF), India’s GDP is projected to grow at an annual rate of *6.3% between 2024 and 2028. The GDP growth rate for the fiscal year 2023-24 stood at 8.2%, reflecting the strong economic momentum driven by various sectors, including real estate.
[7:43 PM, 9/9/2024] AK Sir Sir RnR: Website and SM
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[7:44 PM, 9/9/2024] AK Sir Sir RnR: India’s real estate sector is set for robust growth, with projections indicating a 10% CAGR over the next 3-5 years, driven by both public and private investments. The surge in government capital expenditure and private sector contributions are fueling this expansion, with CapitaLand Investment Limited planning to double its funds in India by 2028. Following the pandemic, demand in both large and small cities is on the rise, further propelling the sector. According to the IMF, India’s GDP is expected to grow at 6.3% annually from 2024-2028, reflecting strong economic momentum.