In India, if a family has its own roof to live in, then it is linked to the prosperity of that family. In the initial phase of economic prosperity, just having one’s own roof is considered a measure of economic success for that particular family. But gradually, with the economic progress, the family reaches such a level that instead of this small house, it starts feeling the need of a big house with all the facilities. This type of economic development can be considered auspicious for any country. In recent times, all this is seen happening in India also. Recently, a fully-equipped residential project was announced in Gurugram near Delhi. In this residential project, 1113 flats built at a cost of Rs 7,200 crore were sold in just 3 days. This shows the economic prosperity of India. Anyway, in India, buying a house is seen as a dream project and is considered an emotional experience and a guarantee of financial security. From this point of view, the year 2023 has proved to be a very successful year for residential construction in India and on the basis of this it is being said that the year 2024 is going to be an even better year.
India has been plundered and plundered by foreign invaders and the British for more than 1000 years. Now the period of reconstruction of India has started. Till now, the goal of Indian citizens was to have a roof over their heads, but now it is also being developed in the form of housing with all the facilities. Since India gained political independence, public housing projects were started in the country by various governments. Through these projects, houses are being built and made available to the citizens by various governments. Additionally, in the postwar period, land reform programs were also implemented by governments in the country so that vacant land could be developed as residential areas in cities. After implementing these land reform programs, permission was given to build residential houses in the private sector also. Since then, there has been a flood of residential projects with all facilities in the country. The houses with all the facilities built under these various projects started getting sold quickly. Now, big residential projects, information technology parks, shopping malls etc. are being developed in large quantities in the country. Now even very expensive and big size flats are easily sold in India. By the year 2024, India’s real estate market has now become the fastest growing market in the entire world. Today, one thing is common in all the big cities of India that the construction work of multi-storey buildings is going on at a very fast pace. India’s real estate market was approximately US$ 26,500 crore in the year 2023, which is going to increase to US$ 1 trillion by 2030 and to US$ 5.8 trillion by 2047.
Currently, the real estate market contributes 7 percent to India’s GDP and this sector provides employment to 5 crore citizens. The growth of the real estate sector also gives a boost to many other industries related to the manufacturing sector. Such as cement industry, steel industry, glass industry, etc. According to an estimate, by the year 2047, the contribution of the real estate market to India’s GDP can reach 15 percent.
In India, houses worth Rs 3.27 lakh crore were sold in the year 2022 and houses worth Rs 4.5 lakh crore were sold in the year 2023. Thus, a growth rate of 38 percent has been achieved in this sector in the year 2023. The demand in this sector remains very strong. The seven largest markets in terms of residential houses in India are Mumbai, Delhi NCR, Bangalore, Hyderabad, Chennai, Kolkata, and Pune. It is also considered to be the largest metropolis of India.
Such a high growth rate in the sales of residential houses in India is being recorded because the economic development in India has gained rapid pace. The poor class is becoming the middle class and the middle class is becoming the rich class. Therefore the demand for expensive expensive flats is increasing rapidly. Secondly, the Reserve Bank of India has also kept the interest rates stable for a long time. Also, the inflation rate in India has also started decreasing. The income of India’s middle class has increased and they are increasing their investment in real estate. The central government is also encouraging citizens to invest in this sector. Income tax rates have been reduced. Subsidy is being given by the Central Government to those buying new houses. “Scheme for Affordable House” has been implemented. But, in India, not only affordable houses are being bought but now citizens are also investing in expensive houses with all the facilities. If the price of a house is more than Rs 1.5 crore, it is considered as a house with all facilities and in Mumbai, a house costing more than Rs 2.5 crore is considered as a house with all facilities. In India, the sale of fully equipped houses has increased by 130 percent in the year 2023. In India, 3000 fully equipped houses were sold in the year 2022, while 6900 fully equipped houses were sold in the year 2023.
Residential houses whose price is more than Rs 40 crore are counted in the category of ultra well-equipped residential houses. The sales of these houses have increased by 200 percent in the year 2023. About 600 ultra fully equipped houses have been sold in India in 7 metros of the country. This shows that the number of ultra-rich citizens in India is increasing rapidly. The population of millionaire citizens in India has increased by 69 percent. The number of ultra high net worth (income more than US$30 million) citizens is also increasing rapidly. According to an estimate, the number of ultra high net worth citizens in India is going to be 19000 in the next three years. Citizens of this category are looking for houses with ultra facilities. Similarly, the need for office space, mall space, and large size godowns for e-commerce companies to store their stock is also continuously increasing in India. Foreign investors are also increasing their investment in this type of construction. In the first 6 months of the year 2023, foreign investors have made private investment of US $ 400 crore in India. Out of this, half i.e. 200 crore US dollars has been invested in the field of real estate. Foreign investors are now increasing their investments in India while reducing their investments in China. In India, foreign investors are getting a rapidly growing economy, there is more demand due to the large number of youth and due to the stable central government, economic reform programs are being continuously carried forward.
Retired Deputy General Manager
state Bank of India