Page 51 - Arvind 2024

widespread adoption of flexible working arrangements. This growth is fundamentally fuelled
by consumer demand, lending it a layer of durability. The introduction of new properties is further propelling this upward trend, backed by a solid underlying demand. Moreover, the process of industry consolidation is providing a boon to established firms, which is a double growth engine in addition to GDP growth.
Increasing investment: Investments from Non-Resident Indians (NRIs) in India’s real
estate sector are expected to account for 20% by 2025. This increase in demand stems from various factors, both financial
and emotional. While sentimental attachment has traditionally spurred NRIs to buy property in India, the availability of world-class
Union Budget allocation
The government’s Interim Budget for FY24-25 includes plans to launch a new initiative aimed
at assisting eligible middle- income individuals and families currently residing in rented accommodations, chawls, slums, and unauthorised colonies in purchasing or constructing their own homes. This move is expected to significantly boost housing availability for the middle-income group.
Additionally, efforts to enhance infrastructure and connectivity are anticipated to further stimulate demand for residential and commercial real estate nationwide. As per the announcement by the Finance Minister, construction of an additional 2 Cr homes will be planned over the next five years under the Prime Minister Awas Yojana - Gramin (PMAY Rural), with the budget for PMAY being
amenities within the country now provides substantial reasons for investing in quality real estate. This blend of emotional and practical motivations is reshaping the landscape of NRI investments in the Indian real estate market.
Consumer confidence: RERA (Real Estate Regulation and Development Act) played a crucial role in boosting the Indian real estate sector by promoting transparency and accountability. It increased consumer confidence and encouraged developers
to complete projects on time, which improved the overall quality of construction. RERA also streamlined the industry by ensuring that developers comply with regulations and preventing fraudulent practices. A survey conducted by Magicbricks revealed that 71% of homebuyers
increased to Rs. 80,671 Cr for
the fiscal year 2024-25, up from Rs. 79,590 Cr in the previous year.
Positive steps are taken forward towards a fostering growth
in the housing markets with developments, which include the creation of two crore additional homes and the introduction of
a housing scheme for deserving middle-income individuals. Moreover, the announcement of
a Rs. 1 Lac Cr research fund for sunrise sectors is expected to spur private sector-driven innovations and increase the demand for commercial real estate.
An 11% rise in the infrastructure spending is projected to strengthen the growth of various real estate sectors across different regions. Plans to expand multi- modal corridor connectivity, including new railway lines and doubling the capacity of airports and ports, are likely to significantly
Corporate Overview
Statutory Reports Financial Statements
prefer to invest in RERA-registered projects, indicating that RERA
has become a crucial factor in homebuyers’ decision-making.
Fractional ownership: The market size of fractional ownership in India is projected to reach USD 8.9 Bn by 2025 from a valuation of USD 5.4 Bn in 2020. This, in turn, is anticipated to increase demand for real estate, as more people invest in housing and commercial spaces. Job creation from economic expansion enhances
the demand for office and residential properties. Ultimately, the real estate sector benefits from heightened domestic and international investment inflows.
(Source: Knight Frank, NoBroker, Economic Times, Business Standard)
impact the real estate sector by enhancing accessibility and promoting development.
The expansion of Metro Rail and Namo Bharat initiatives is set to accelerate urbanisation, creating new micro-markets around metropolitan areas. Since its inception in June 2015, the PMAY mission has aimed to provide housing for all, offering central assistance to eligible families through states, Union Territories (UTs), and Central Nodal Agencies (CNAs).
The government’s ongoing
focus on affordable housing, infrastructure enhancement, and improved connectivity has begun to show results, with growth observed in tier 2 and 3 cities as well as in the outskirts of major metropolitan areas.
(Source: Economic Times)
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