The Surge of The Indian Real Estate Market & Noida’s Contribution
At present, the Indian real estate sector is valued at ₹24 lakh crore (~ $300 billion). It is mainly divided into 2 segments – residential and commercial. Did you know that the residential segment contributes 80% of the total market share, while the commercial segment contributes 20%?
The Indian real estate market is expected to grow very strongly over the next couple of years, with the market size set to soar to $1.3 trillion by 2034. This correlates with several factors, including increased GDP, population, or a higher demand for housing. The Confederation of Real Estate Developers’ Association of India (CREDAI) anticipates a requirement for 7 crore additional housing units by 2030, with over 87.4% of the demand expected to be for homes priced above Rs 45 lakh. The increasing trend infers consumer demand, which is triggered by the size and value of the accommodation spaces, contributing to market growth.
It’s not surprising that the Indian real estate market is an enticing prospect for all stakeholders due to the increased flow of foreign investments and domestic buyers. In addition to this, there has been a notable increase in inflows from Asia-Pacific countries such as Japan, Hong Kong, South Korea, and Singapore. Simply put, the Indian real estate industry’s growth can be attributed to the amalgamation of the following factors:
- Foreign investors
- The homebuyer’s desire to buy
- The national supply
It appears that we can expect the Indian real estate market to continue to remain an integral part of the country’s economic growth. What’s interesting is that the country’s GDP will also benefit from an expected whopping €4.77 trillion (~₹431.41 trillion) by 2047. It seems that this lucrative sector will continue to hold its post as a major catalyst for India’s economic development, with an expected growth rate of 23.8% by 2034.
Noida’s Contribution To India’s Real Estate Market
Compared with other major cities in the country, Noida has also witnessed a rise in the sector and has become a valuable contributor to the market. 2023 was a fruitful year for Noida’s residential sector, with record-breaking sales. According to the reports by JLL, a total of 14,822 flats were sold, valued at ₹24,944 crore. Some of the factors that caused this remarkable growth were:
- Increased job opportunities
- Increased investments
- Accessible top-grade housing options
- Promising development opportunities
Another interesting addition is that consumer priorities seem to be changing as well. Reports suggest that Noida’s average home size has been steadily increasing by 11% annually. This shows that homebuyers prefer and aspire to live in larger spaces. Catering to the growing demand, real estate builders in Noida have begun to deliver a range of residential properties, including luxury residential apartments in Noida in prime locations. These unique apartments are built to cater to homebuyers’ modern needs and requirements. Features such as state-of-the-art gyms, temperature-controlled swimming pools, sports facilities, and clubhouses are some of the high-end amenities you can expect from luxury apartments in Noida.
Noida’s prominent features, such as its strategic location and infrastructure development, further build up its attraction to foreign and domestic investors. What sets Noida apart from other close-range cities like Gurgaon and Delhi is its affordability and location, which benefit investors and homeowners. Adding to its appeal is its status as an employment hub with countless commercial buildings, SEZs, IT parks, and industrial sectors.
This evidently growing demand is an encouraging opportunity for real estate builders in Noida to deliver magnificent projects and play a part in the progress of the real estate market.
Noida also focuses on building a wholesome environment for the residents with green initiatives and sustainable living. The inclusion of massive, lush parks and waterbodies into its infrastructure developments is another plus point when attracting investors. With the convenience and superior lifestyle offered by the city, Noida is on its way towards becoming an ideal destination for investors and real estate builders.
Recent Government Policies That Support Indian Real Estate Market Growth
The Indian government has played a significant part in supporting the expansion of the real estate market. Here are some of the recent key policies that are beneficial for the rise of the sector.
The recent Union Budget 2024 announced several policies that complimented India’s real estate market. Housing was made more affordable with CLSS at a concessional rate of 8% by providing a GST subsidy to EWS, LIG, and MIG.
Transparency in the real estate industry has been an issue. However, the government’s RERA and the Benami Transaction Act have boosted customer confidence and offered accountability and transparency. Furthermore, the introduction of these policies will ensure that developers adhere to transparency standards and corporate governance. It would also eliminate small or non-serious players.
Here’s an interesting prediction: By 2030, the Indian real estate sector is estimated to achieve a market value of $1 trillion. This amount would account for 18-20% of the Indian GDP.
The PM Awas Yojana will also be taking a step ahead with the government committing a massive ₹79,000 crore (US$ 9.64 billion). When compared to last year, this measure is a 66% increment towards affordable housing.
Housing and infrastructure developments are pivotal to reviving a country’s economy. This is why industries related to housing development, such as steel, cement, etc., would have to adapt to the new demands. It’s also quite interesting that 15% of jobs in India are created by the real estate sector.
Measures to improve efficiency are also taken by the government, ensuring improved transparency and service delivery. Some of these actions are as follows:
- Computerising government functions
- Networking with various departments across states
- Easy obtain of Encumbrance Certificates (EC) or Patta
In short, these policies would create affordability, transparency, and accountability in the sector. These changes would ultimately benefit consumers and the economy and be competent factors that contribute to the Indian real estate market’s growth.