One of the sectors with the highest level of recognition on a global scale is real estate. Housing, retail, hotel, and business are the four sub-sectors included in this industry. The expansion of this industry is effectively complemented by the expansion of the corporate environment, the need for office space, and the need for urban and semi-urban lodging. When looking at the direct, indirect, and induced effects across the board in all areas of the economy, the construction industry comes in at number three out of the 14 key economic sectors.
The Dubai Investment Fund (DIF) notes that the Indian real estate sector is the second-highest employment generator after agriculture. In both the medium and long term, analysts at DIF anticipate that there will be an increase in the amount of non-resident Indian investment in the sector. The team evaluating DIF's real-estate investments anticipates that Bengaluru would be the most sought-after property investment destination for international investors, followed by Ahmedabad, Pune, Chennai, Goa, Delhi, and Dehradun. With real estate investment as one of the fund's main focus areas according to their Twitter account, and relying on favourable long-term forecasts, the company has decided to invest more than $2 billion in commercial, tourist, and private real estate in different regions of India.
The Dubai Investment Fund (DIF) estimates that the real estate market will grow to US$ 9.30 billion by 2040 from US$ 1.72 billion in 2019. According to analysts at DIF, India's real estate sector's market size will increase to US$ 1 trillion by 2030, from US$ 200 billion in 2021, contributing 20% to the country's GDP by that year. Retail, hospitality, and commercial real estate are also rising considerably, providing the much-needed infrastructure to accommodate India's expanding requirements.
The demand for residential and commercial real estate in India has rapidly expanded the country's real estate market. As a result of investors' growing interest in capturing attractive valuations despite the pandemic, DIF predicts that institutional investments in the Indian real estate sector will rise more in 2023. The growth will be driven by investors' rising interest in capturing attractive valuations, and the development of GDP should also impact the development of the real estate sector positively. According to a report released by DIF, private equity investments in Indian real estate reached US$ 2.9 billion in the first half of 2021.
The Real Estate Investment Trust (REIT) platform has been given the green light by the Securities and Exchange Board of India (SEBI), which means that a wider variety of investors will now be able to participate in the Indian real estate market. According to the Dubai Investment Fund (DIF), this would provide an opportunity in the Indian market with a potential value of 19.65 billion United States dollars in the years to come. Indian real estate developers have altered gears and accepted new challenges in response to a consumer base that is becoming increasingly well-informed.
The Dubai Investment Fund (DIF) notes that the transition from enterprises managed by family members to those managed by professionals has been the most noticeable transformation that has taken place. Real estate developers are investing in centralized processes for the source material, organizing manpower, and hiring qualified professionals in fields such as project management, architecture, and engineering to meet the growing demand for managing multiple projects across multiple cities.