Please Wait.....
Report
Residential Real Estate Market In India - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)
Market Report I 2023-01-23 I 150 Pages I Mordor Intelligence
The residential real estate market in India is expected to register a CAGR of more than 5% during the forecast period 2022-2027. The impact of the COVID-19 pandemic on Indian real estate has been unprecedented, as the sector has lost over INR 1 lakh crore since the pandemic started. According to the industry assessment, the pandemic caused a significant financial crunch for real estate developers. The loan crunch reduced residential sales in India's top seven cities from four lakh units in 2019-20 to 2.8 lakh units in 2020-21. Construction and sales activity came to a halt across the entire real estate sector due to the COVID-19 pandemic-related lockdowns. Construction workers from numerous sites also returned to their hometowns. When most states implemented fragmentary lockdowns to stop the virus from spreading, demand and supply were both negatively impacted.
According to the Ministry of Housing and Urban Affairs, all states should consider lowering the stamp duty on property sales to boost real estate activity, create more money, and promote economic growth. According to the Economic Times Housing Finance Summit, about three houses are built per 1,000 people each year, compared to the required five houses per 1,000 inhabitants. The present housing deficit in cities is projected to exceed ten million units. By 2030, an extra 25 million units of affordable housing will be needed to accommodate the country's urban population growth.
During the April-June 2021 period, average property values in India's eight key residential markets increased slightly. While certain cities, like Hyderabad and Ahmedabad, witnessed a 5% increase in new apartment pricing compared to the same period in 2020, other cities saw far lesser increases. With the exception of the Mumbai Metropolitan Region, prices rose marginally in other areas during the second wave of the COVID-19 pandemic.
India Residential Real Estate Market Trends
Growth in New Housing Supply
In the eight micro-markets in India, a total of 55,907 new housing units were sold between July and September 2021, registering a 59% Y-o-Y increase. New housing supply in the third quarter of 2021 (between July and September 2021) increased by 228% Y-o-Y across the top eight cities, compared to the 19,865 units introduced in the third quarter of 2020.
Although Mumbai is one of the most expensive real estate markets in the country, many factors are currently at play that has made purchasing a home in this city a viable option. According to a recent Indian real estate survey for Q1 2021, home sales in India's top seven cities surpassed Q1 2020 by over 29%, amounting to 58,920 units. This is much greater than pre-COVID levels, indicating a resurgence in the economy. In the first quarter of 2021, 62,130 residential units were built in the seven cities, up 18% from the previous quarter and 51% Y-o-Y. National Capital Region (NCR), Mumbai Metropolitan Region (MMR), Bengaluru, Pune, Hyderabad, Chennai, and Kolkata make up India's top seven cities.
MMR and Pune, which together accounted for 31, 227 units, or 53% of the total residential units sold in the quarter under review, were the driving forces behind this increase in home sales in the seven cities. MMR alone sold 20,350 residential units, accounting for 35% of the total 58,920 units sold across the seven cities under consideration. As a result, MMR is the country's largest home sales market. The sale of residential units in MMR was up 16% from the previous quarter and 46% Y-o-Y.
Urbanization Driving the Market
Urbanization has accelerated in the country as a result of population and economic growth, with the number of metropolitan towns and cities skyrocketing. This expansion is projected to continue in the coming years. New Delhi, Mumbai, Bangalore, Hyderabad, Ahmedabad, Chennai, Kolkata, Surat, and Pune are the nine biggest cities in India. Urbanization begins in these vast cities, with many businesses, technological advancements, and geographical problems. India is currently experiencing a housing crisis in metropolitan areas, and additional housing will be required to fulfill future demand. Due to a lack of housing policies, this demand originates from the economically disadvantaged population. In some Indian cities, public-private partnership policies have been implemented to build homes.
Over 40% of India's population is expected to be concentrated in its major cities by 2030. According to the Union Ministry of Housing and Urban Affairs, 70% of India's future cities have to be developed in order to meet the country's ever-growing urban population. Work from anywhere became more popular in 2021, and demand for affordable houses with ticket sizes less than INR 40-50 lakh has surged in Tier 2 and 3 cities/towns, resulting in price increases in certain areas. The one-year extension of the income tax credit for affordable housing for both developers and buyers has boosted demand for this housing lot even more. The government's 'Housing for All' initiative, which began in 2015, aims to offer inexpensive housing to the urban poor and construct two crore affordable homes by March 31, 2022. This has bolstered this category, and many rules and regulations have been implemented to assist the economically disadvantaged in obtaining inexpensive housing, such as the Pradhan Mantri Awas Yojna (PMAY) and the GST rate reduction from 8% to 1% for the affordable housing market.
India Residential Real Estate Market Competitor Analysis
The top participants in the Indian residential real estate sector are covered in this research. The residential real estate market in India is highly fragmented. Large firms have financial resources to their advantage, whereas small businesses can compete effectively by building expertise in local markets. Some of the main companies are Godrej Properties, Prestige Estate, DLF, Phoenix Mills, L&T Realty Ltd, and Omaxe Ltd. The top listed developers' share of the Indian residential market is predicted to rise to 29% in FY24 from 25% in FY21, owing to a robust pipeline of residential project launches.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
1 INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
2.1 Analysis Methodology
2.2 Research Phases
3 EXECUTIVE SUMMARY
4 MARKET INSIGHTS
4.1 Current Market Scenario
4.2 Residential Real Estate Buying Trends - Socioeconomic and Demographic Insights
4.3 Government Initiatives and Regulatory Aspects Pertaining to the Residential Real Estate Sector
4.4 Insights into Size of Real Estate Lending and Loan to Value Trends
4.5 Insights into Interest Rate Regime for General Economy and Real Estate Lending
4.6 Insights into Rental Yields in Residential Real Estate Segment
4.7 Insights into Capital Market Penetration and REIT Presence in Residential Real Estate
4.8 Insights into Affordable Housing Support Provided by Government and Public-private Partnerships
4.9 Insights into Real Estate Tech and Startups Active in Real Estate Segment (Broking, Social Media, Facility Management, Property Management)
4.10 Impact of COVID-19 on the Market
5 MARKET DYNAMICS
5.1 Drivers
5.2 Restraints
5.3 Opportunities
5.4 Porter's Five Forces Analysis
5.4.1 Bargaining Power of Suppliers
5.4.2 Bargaining Power of Consumers/Buyers
5.4.3 Threat of New Entrants
5.4.4 Threat of Substitute Products
5.4.5 Intensity of Competitive Rivalry
6 MARKET SEGMENTATION
6.1 By Type
6.1.1 Condominiums
6.1.2 Villas
6.1.3 Other Types
6.2 By Key Cities
6.2.1 Pune
6.2.2 Mumbai
6.2.3 Thane
6.2.4 Bangalore
6.2.5 Chennai
6.2.6 Hyderabd
6.2.7 Noida
6.2.8 Kolkata
6.2.9 Ahmedabad
7 COMPETITIVE LANDSCAPE
7.1 Overview (Market Concentration and Major Players)
7.2 Company Profiles
7.2.1 Godrej Properties
7.2.2 Prestige Estate
7.2.3 DLF
7.2.4 Phoenix Mills
7.2.5 L&T Realty Ltd
7.2.6 Omaxe Ltd
7.2.7 Ansal Properties and Infrastructure Ltd
7.2.8 Sobha Ltd
7.2.9 Oberoi Realty
7.2.10 Dlip Buildcon
7.2.11 NBCC (India)
7.2.12 Indiabulls Real Estate
7.2.13 Sunteck Realty
7.2.14 Brigade Enterprises*
8 MARKET OPPORTUNITIES AND FUTURE TRENDS
9 APPENDIX
9.1 Macroeconomic Indicators (GDP Breakdown by Sector, Contribution of Construction to Economy, etc.)
9.2 Key Production, Consumption, Export & Import Statistics of Construction Materials
- Not Sure / Need Reassuring
- Confirm Content
-
Content is provided by our partners and every effort is made to make Market Report details as clear as possible. If you are not sure the exact content you require is included in this study you can Contact us to double check. To do this you can:
Use the ‘? ASK A QUESTION’ below the license / prices and to the right of this box. This will come directly to our team who will work on dealing with your request as soon as possible.
Write to directly on support@scotts-international.com with details. Please include as much information as possible including the name of report or link so our staff will be able to work on you request.
Telephone us directly on 0048 603 394 346 and an experienced member of team will be on hand to answer.
-
- Sample Pages
-
With the vast majority of our partners we can obtain Sample Pages to support your decision. This is something we can arrange without revealing your personal details.
It is important to note that we will not be able to provide you the exact data or statistics such as Market Size and Forecasts. Sample pages usually confirm the layout or the Categories included in Charts and Graphs, excluding specific data.
To ask for Sample Pages by contact us through ‘? ASK A QUESTION’, support@scotts-international.com, or by telephoning 0048 603 394 346.
-
- Check for Alternatives
-
Whilst we try to make our online platform as easy to use as possible there is always the possibility that a better alternative has not been found in your search.
To avoid this possibility Contact us through ‘? ASK A QUESTION’, support@scotts-international.com, or by telephoning 0048 603 394 346 and a Senior Team Member can review your requirements and send a list of possibilities with opinions and recommendations.
-
- Confirm Content
- Prices / Formats / Delivery
- Prices
-
All prices are set by our partners and should be exactly the same as those listed on their own websites. We work on a Revenue share basis ensuring that you never pay more than what is offered elsewhere.
Should you find the price cheaper on another platform we recommend you to Contact us as we should be able to match this price. You can Contact us though through ‘? ASK A QUESTION’, support@scotts-international.com, or by telephoning 0048 603 394 346.
-
- Discounts
-
As we work in close partnership with our Partners from time to time we can secure discounts and assist with negotiations, this is part of our personalised service to you.
Discounts can sometimes be arranged for speedily placed orders; multiple report purchases or Higher License purchases.
To check if a Discount is possible please Contact our experienced team through ‘? ASK A QUESTION’, support@scotts-international.com, or by telephoning 0048 603 394 346.
-
- Available Currencies
-
Most Market Reports on our platform are listed in USD or EURO based on the wishes of our Partners. To avoid currency fluctuations and potential price differentiations we do not offer the possibility to change the currency online.
Should you wish to pay in a different currency to that advertised online we do accept payments in USD, EURO, GBP and PLN. The price will be calculated based on the relevant exchange rate taken from our National Bank.
To pay in a different above currency to that advertised online please Contact our team and a quotation will be sent within a couple of hours with payment details.
-
- Licenses
-
License options vary from Partner to Partner as is usually based on the number of Users that will benefitting from the report. It is very important that License ordered is not breached as this could have potential negative consequences for you individually or your employer.
If you have questions or need confirmation about the specific license we recommend you to Contact us and a detailed explanation will be provided.
-
- Global Site License
-
The Global Site License is the most comprehensive license available. By selecting this license, the Market Report can be shared with other ‘Allowed Users’ and any other member of staff from the same organisation regardless of geographic location.
It is important to note that this may exclude Parent Companies or Subsidiaries.
If you have questions or need confirmation about the specific license we recommend you to Contact us and a detailed explanation will be provided.
-
- Formats
-
The most common format is PDF, however in certain circumstances data may be present in Excel format or Online, especially in the case of Database or Directories. In addition, for certain higher license options a CD may also be provided.
If you have questions or need clarification about the specific formats we recommend you to Contact us and a detailed explanation will be provided.
-
- Delivery
-
Delivery is fulfilled by our partners directly. Once an order has been placed we inform the partner by sharing the delivery email details given in the order process.
Delivery is usually made within 24 hours of an order being placed, however it may take longer should your order be placed prior to the weekend or if otherwise specified on the Market Report details page. Additionally, if details have been not fully completed in the Order process a delay in delivery is possible.
If a delay in delivery is expected you will be informed about it immediately.
-
- Shipping Charges
-
As most Market Reports are delivered in PDF format we almost never have to add additional Shipping Charges. If, however you are ordering a Higher License service or a specific delivery format (e.g. CD version) charges may apply.
If you are concerned about additional Shipping Charges we recommend you to Contact us to double check.
-
- Prices
- Ordering
- By Credit Card
-
We work in Partnership with PayU to ensure payments are made securely in a fast and effortless way. PayU is the e-payments division of Naspers.
Naspers operates in over 133 International Markets and ranks 3rd Globally in terms of the number of e-commerce customers served.
For more information on PayU please visit: https://www.payu.pl/en/about-us
-
- By Money Transfer
-
If you require an invoice prior to payment, this is possible. To ensure a speedy delivery of the Market Report we require all relevant company details and you agree to maximum payment terms of 30 days from receipt of order.
With our regular clients deliver of the Market Report can be made prior to receiving payment, however in some circumstances we may ask for payment to be received before arranging for the Market Report to be delivered.
-
- By Credit Card
- Security
- Website security
-
We have specifically partnered with leading International companies to protect your privacy by using different technologies and processes to ensure security.
Everything submitted to Scotts International is encrypted via SSL (Secure Socket Layer) and all personal information provided to Scotts International is stored on computer systems with limited access in controlled environments.
-
- Credit Card Security
-
We partner with PayU (https://www.payu.pl/en/about-us) to ensure all credit card payments are made securely in a fast and effortless way.
PayU offers 250+ various payment channels and eWallet services across 4 continents allowing buyers to pay electronically, whether on a computer or a mobile device.
-
- Website security