Facts about Market

India’s real estate market is expected to increase seven times by 2028 to reach US$ 853 billion by 2028 from US$ 121 billion in 2013. It is currently the fourth-largest sector in the country in terms of foreign direct investment (FDI) inflows. FDI in the sector is estimated to grow to US$ 25 billion in 10 years.

Real estate contribution to India’s gross domestic product (GDP) is estimated to increase to about 13 per cent by 2028, on the back of increasing industrial activity, improving income level and urbanization.

Private equity (PE) investments in real estate in 2013 stood at US$ 1.1 billion, a 13 per cent increase in INR terms from US$ 1.2 billion in 2012. Total number of deals increased from 34 in 2012 to 40 in 2013, with an average deal size of US$ 28.0 million.

The Government of India has allocated US$ 1.3 billion for Rural Housing Fund in the Union Budget 2014-15. It has also allocated US$ 0.7 billion for National Housing Bank (NHB) to increase the flow of cheaper credit for affordable housing for urban poor.