Realty sector expected to grow to USD650 bn by 2025
Real estate sector is estimated to grow to $650 billion by 2025 and surpass the $850 billion mark by 2028, said a recently released report.
According to the report titled ‘Indian real estate and construction: Consolidating for growth’ by KPMG India, the real estate sector contributed nearly seven per cent to the Indian gross domestic product (GDP) in 2017 and is expected to double its contribution by 2025. Besides, the sector is projected to grow to $650 billion by 2025 and surpass $850 billion by 2028. The report adds that the factors driving the growth are affordable housing, commercial offices, and co-working spaces.
“The real estate sector in India has now entered a revitalisation phase and teething problems posed by various regulatory reforms have started settling in,” said Neeraj Bansal, Head-KPMG (India). Citing positive investor sentiment, real estate sector witnessed $4 billion investment by institutional investors in 2018, and a five-year high of average deal size having crossed $150 million mark. The driving factors mentioned again were the current government’s renewed focus on affordable housing, the game changing regulatory reforms, and an infrastructure status to warehousing.