The residential sector in India has been through an evolutionary journey of its own reshaping the industry with its ebb and flow across several economic cycles of growth and slump. In this process and time period the Indian economy, both on the macro and micro front, has gone through its own phase of development. Rise in urbanisation rate, increasing household income and favourable government policies has bode well for the residential market.
The residential segment contributes ~80% of the real estate sector in India and is the second highest employment generator second to agriculture. The sector is expected to reach US$1Trn in size by 2030 and contribute 13% to India’s GDP by 2025. This makes it an important asset class both from a sheer size and the potential to generate value for the economy. Various regulatory guidelines and actions in the form of Real Estate Regulatory Act (RERA), Benami Transactions Act, Demonetization, Housing for All to boost affordability, Insolvency & Bankruptcy Code (IBC Act), Stamp duty benefits, to name a few have been instrumental in improving transparency and attracting private investments into the sector.
