The document analyzes key growth factors for the Indian real estate sector in 2014. It notes that real estate in India has been underperforming but is relying on foreign direct investment for growth. Rising household income, urbanization, economic growth, policy support, and other factors are driving increased demand for residential and commercial real estate. Foreign investment in Indian real estate totaled $22.67 billion from 2010 to 2013. The growing health, education, hospitality, and tourism sectors also provide opportunities for real estate development. Policy reforms around funding and regulations support further growth of the Indian real estate market.

1. Analyzing Key
Growth Factors
INDIAN REAL ESTATE STATS
2014
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2. Why is Growth Needed for Real Estate in India
Currently
 Real Estate in India has been witnessing bouts
of underperformance which is in line with the
global statistics for the real estate sector.
 More than domestic growth, the country is
relying on FDI to provide a much needed
boost for this sector.
 Increased tourism, urbanization, growing
economy, convenient financing, policy support
and epidemiological changes are key drivers
of growth for the Indian real estate sector.
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3. Rising Demand for Indian Real Estate
 Rising household income and increased
urbanization have been responsible for the
surge in real estate demands.
 The growing economy is also contributing to
the real estate sector by driving demand for
residential as well as commercial spaces.
 The trend of townships and luxury homes has
also opened up a lot of opportunities for
builders as well as buyers to benefit from.
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4. Increasing Investments in Indian Real Estate
 The period April, 2010 to August, 2013
witnessed almost USD 22.67 in FDI.
 The period April, 2012 to January, 2013
indicated that the Indian real estate was
responsible for 8.8% of the total FDIs in the
country.
 Loosening up of REIT rules have also paved
the way
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5. Lucrative Opportunities for Indian Real Estate
 Growing real estate requirements from the health,
education and hospitality sector have provided
good growth opportunities for the realty sector.
 The rising tourism in the country has also
generated demand for real estate as more
establishments are being planned for
accommodating tourists.
 The relaxations in real estate financing along
with apt political support would definitely bring
about major changes to this sector.
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6. Policy Support for Indian Real Estate
 USD 2.8 Billion have been allocated
exclusively for Rural Housing. This is part of
Budget 2014.
 The government has opened up a world of
opportunities for real estate by allowing 100%
FDI for township projects and settlements.
 Several major reforms such as increasing the
affordability of real estate and relaxation in
REIT rules have paved the way for faster
recovery.
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7. Conclusion
 India’s real estate is currently has a market
size of USD 55.6 billion which could go up to
USD 180 Billion by the year 2020 (estimated
value only)
 The need of the hour is not only to develop
more projects but also to empower the buyers
to be able to make investments in the housing
as well as commercial property space.
 The impact of the efforts would be evident
within 6 – 12 months from now.
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