Indian Real Estate Market to reach USD 1000 bn by 2030, prices of residential property to grow 5% in 2022

In a report titled ‘The Outlook of the Real Estate Market in India’, optimistic signs of the revival of real estate sector have been forecasted. The report brought out by RBSA Advisors, a valuation and consulting firm, has expected the real estate sector in the country will grow USD 1,000 bn by 2030 from USD 60 bn in 2010 at a CAGR of 15%.

While the residential prices are also likely to start rising, 5% growth in capital value is also expected in residential property segment in the current year. As per this report strong growth of 67% YoY to 99,416 has been registered and since H1 2020 tthe unsold inventory level has also dipped by 1% to 441,742 units H1 2021.

The organized segment of retail real estate sector is also expected to increase by 28% to 82 million sq. ft. by 2023. The factors fueling such growth levels include the outlay of Rs 20,000 crore for Gati Shakti in infrastructure projects, besides the outlay of Rs 48,000 crore for Pradhan Mantri Awas Yojana in FY23.  Already the SWAMIH Fund has sanctioned more than Rs 9,500 crore for 95 projects that will create over 57,700 homes.

Rajeev R. Shah, MD and CEO RBSA Advisors said that 2021 recorded an annual Private Equity transaction of USD 3.6 billion (announced value) while the upcoming years also hold a lot of promise as the investment activity has gone up 72% in comparison to the previous year.”