Page 47 - Arvind 2024

(Source: Times News Network, Economic Times, Business Standard, Times of India)
The Interim Budget for FY24-25 underscores a strong commitment to infrastructure development, with an 11.1% increase in capital expenditure outlay to INR 11.11
Lac Cr (3.4% of GDP). These allocations align with positive trends in the financial sector, including rebounding bank credit growth and a decline in bad loans as reported by the RBI in
Indian real estate sector
review
According to Knight Frank, the real estate industry in India is estimated to have been valued
at USD 330 Bn in 2024 and is anticipated to reach USD 1.04 Trn by the year 2029, growing at a CAGR of 25.60% during this time period.
The COVID-19 pandemic significantly impacted the country’s real estate market; however, there has been a notable recovery post-pandemic. Real estate prices have shown a steady increase, with the average annual growth rate rising from 2.3% in fiscal year 2022 to 3.8% in fiscal year 2023 and further to 4.3% in the first half of fiscal year 2024 with company micro markets
Industry trend
City
December 2023, indicating the readiness of healthy financial institutions to support the capital expenditure cycle. The budget also maintains its focus on capital expenditure, directing investments towards solar energy, tourism,
the medical ecosystem, and technology. This consolidated approach highlights the government’s strategic priorities in promoting robust economic
growing in excess of 7% YOY in last 2 years. . Despite this upward trend in prices and the impact of higher interest rates, there has been a continued uptick in housing sales and new project launches, underscoring the resilience of income recovery and positive sentiment toward future prospects in the real estate sector.
Industry leaders and analysts predict that the Indian residential sector will continue its robust growth trajectory into CY 2024.
It is forecasted that sales will increase by 10-15%, exceeding 300,000 units this year, driven
by a significant pipeline of new projects. This surge is supported by numerous reputable developers securing land for future projects and expanding into new regions to
Project launches
Corporate Overview
Statutory Reports Financial Statements
growth and development through targeted investment in key sectors.
FY23-24
Changes FY22-23
FY23-24
FY22-23
leverage the surge in demand for housing.
The year 2023 marked a historic peak, exceeding the highs of 2010 by 24-25%. Sales momentum from 2023 is anticipated to carry on, with an expected annual growth of 10-15%, potentially reaching between 310,000 and 315,000 units.
Going forward, the real estate sector is estimated to reach USD 1.3 Trn, or 13.8% of projected GDP, by fiscal 2034 and USD 5.17 Trn (17.5% of GDP) by 2047, as per Confederation of Real Estate Developers’ Association of India. The association has projected
an additional demand for 70 Mn housing units by 2030.
Sales
Changes
90,314 8%
60,137 2%
53,789 1%
50,730 17%
34,130 5%
16,561 17%
15,220 5%
15,435 21%
3,36,316 7%
Mumbai 92,611
NCR 64,836
Bengaluru 45,387
Pune 40,960
Hyderabad 44,577
Ahmedabad 21,201
Chennai 15,648
Kolkata 12,035
Total 3,37,254
92,579 0%
63,056 -3%
52,188 15%
44,190 8%
47,139 6%
22,307 5%
16,670 7%
18,573 54%
83,921
58,833
53,090
43,473
32,353
14,182
14,522
12,791
3,56,702 6%
3,13,165
Annual Report 2023-24 | 45