Indian real estate market to touch USD 1 trillion by 2030

Indian real estate market is expected to touch USD 1 trillion by 2030, becoming the third largest globally, a recent survey said. According to the survey conducted by KPMG in association with Naredco and APREA revealed that the sector is estimated to grow to USD 650 billion by 2025 and surpass USD 850 billion by 2028 to touch USD 1 trillion by 2030. The report released today in Mumbai noted that India has consistently improved its ranking in global real estate since 2014, which has instilled confidence in investors. Speaking about the findings of the report, Neeraj Bansal partner and head ASEAN corridor of KPMG in India said this growth is driven by emerging asset classes such as affordable housing and co-working spaces. "As by-products of this growth, the average yearly contribution of 67 per cent to Indian gross domestic product is anticipated to almost double by 2025 while generating employment opportunities for over 66 million people in parallel," he added. According to the report the private equity investments in Indian real estate improved 15 per cent year-on-year in January-March 2018 reaching USD 3 billion and is estimated to grow to USD 100 billion by 2026 with tier 1 and 2 cities benefiting the most in future. "Indian realty sector has been struggling with unsold inventory, reducing buyers' confidence, delays in projects, and negative cash flows for quite some time. However, a number of growth promoting regulatory developments and initiatives announced over the last two years, are paving the way for strong sector growth in the future," the report said. The report further noted that USD 4 billion has been invested by institutional investors in 2018 so far with the average deal size crossing USD 150 million mark, the highest in the last five years.