Reforms, Initiatives, and Growth Mark India’s Real Estate Journey
Over the past decade, India’s residential real estate market has undergone a transformation, thanks to several reforms and initiatives by the Modi-led government. The collaborative report ‘Real Estate Unboxed: The Modi Effect‘ by ANAROCK and NAREDCO sheds light on the sector’s evolution, highlighting a landscape ripe with potential for growth.
Anuj Puri, Chairman of ANAROCK Group, notes the sector’s resilience, with housing demand and new supply in the top 7 cities soaring in the last 10 years. The report reveals that between 2014 and 2023, approximately 28.27 lakh units were sold in these cities, while over 29.32 lakh units were launched. Residential property prices have also witnessed significant growth, appreciating by 25-60% across these cities.
Niranjan Hiranandani, Chairman of NAREDCO, highlights the sector’s role in India’s economic growth, with the economy leaping to the 5th position globally. He predicts a market size of USD 1 trillion by 2030, contributing 13% to India’s GDP by 2025.
The report attributes the sector’s success to various factors, including the successful implementation of RERA (Real Estate Regulation and Development Act) across states since 2017. RERA has brought transparency, timely project completion, and accountability among developers, safeguarding the interests of homebuyers.
The SWAMIH Fund, initiated in 2019, has been instrumental in completing approximately 26,000 homes by December 2023, with 80,000 more expected to be completed in the next three years. The fund aims to provide financial support to stalled affordable and mid-income housing projects, addressing liquidity issues and boosting ancillary industries.
Government-backed initiatives such as PMAY (Pradhan Mantri Awas Yojana), GST, demonetization, and the adoption of PropTech have also positively impacted the sector. PropTech, which accounts for 6% of India’s total recognized startup universe, has introduced innovative solutions like blockchain and AI-driven analytics, streamlining processes and improving efficiency.
The report indicates a significant drop in housing inventory overhang, from 41 months in 2017 to 15 months at the end of 2023, showcasing a positive trend in the market. Completion of units in the top 7 cities has also seen growth, with a 44% increase in units completed in 2022 compared to 2021.
Looking ahead, the real estate industry is expected to align its strategies with economic conditions, focusing on stability, job creation, and increased private sector investment. With a strong foundation laid by the government’s reforms and initiatives, India’s real estate sector is poised for continued growth and development.
