The future of construction, real estate & infrastructure in India

India is an emerging market that has seen rapid growth in the construction and real estate industry in recent years. With the increasing population and urbanization of the country, there is a huge potential for investments in the sector. Furthermore, with a growing demand for infrastructure and improvements to existing facilities, there are many opportunities for investors to capitalize on this trend. This blog post will take a look at how construction, real estate and infrastructure development in India is changing the country’s landscape, as well as how businesses can capitalize on these opportunities.

What will the future of construction, real estate and infrastructure in India look like?

This is a difficult question to answer, as there are many factors that will affect the future of these industries in India. However, we can make some predictions based on current trends and developments.

Firstly, the construction industry in India is expected to grow significantly in the next few years. This is due to the increasing demand for housing and commercial space in Indian cities. The government’s ‘Housing for All’ initiative is also likely to boost the construction sector.

Secondly, the real estate market in India is expected to continue growing at a rapid pace. This is due to the increasing urbanisation and economic growth in the country. The rising middle class is also fuelling demand for better quality homes and office space.

Thirdly, infrastructure development is crucial for supporting the growth of construction and real estate in India. The government has made significant investments in this area, and we can expect to see more roads, railways, airports and other infrastructure projects being developed in the coming years. This will create even more opportunities for construction and real estate companies operating in India.

The current state of construction, real estate & infrastructure in India

The construction, real estate and infrastructure industries in India are growing at a rapid pace. According to a report by KPMG, the Indian construction industry is expected to grow from $126 billion in FY17 to $316 billion by FY22. The real estate sector is also expected to grow significantly, with investments of $30-35 billion by 2025.

The government’s focus on infrastructure development is one of the key drivers of growth in these industries. The Union Budget 2018-19 allocated Rs 5.97 lakh crore (US$ 93.60 billion) for transport infrastructure, which is an increase of 34% over the previous year. In addition, the government has also announced several initiatives such as the Bharatmala Project and Sagarmala Programme, which are aimed at improving connectivity and boosting economic activity.

The current state of construction, real estate and infrastructure in India presents a huge opportunity for businesses operating in these sectors. With the right mix of products and services, businesses can tap into this growing market and reap significant rewards.

Opportunities of Real Estate in India

The real estate sector in India has been growing at a rapid pace with the country’s economy and urbanization. The sector is expected to grow at a compound annual growth rate (CAGR) of 11.2% between FY18-2023 to reach US$ 1 trillion by 2030. The residential segment is projected to grow at a CAGR of 13.3% during FY18-2023, while the commercial segment is anticipated to grow at a CAGR of 9.6%.

With the government’s initiatives such as ‘Housing for All by 2022’, ‘Smart Cities Mission’ and ‘Make in India’, there is an increased demand for housing and office spaces in Tier I & Tier II cities, which is driving the growth of the real estate sector in India. Additionally, the implementation of RERA and GST has also created a positive environment for the growth of the sector.

Foreign investors are also showing interest in investing in Indian real estate owing to its potential growth prospects. According to Jones Lang LaSalle (JLL), India recorded US$ 7 billion of foreign direct investment (FDI) inflow into real estate and construction activities in 2017, which was more than double the FDI recorded in 2016.

Some of the major opportunities in Indian real estate include:

  • With increasing urbanization and migration of people from rural areas to cities, there

Conclusion

In conclusion, construction, real estate and infrastructure are playing an ever-increasing role in India’s economic development. The government is taking proactive steps to ensure that the sector remains attractive for foreign investment and continues to grow. With high levels of growth expected over the next few years in this sector, it looks like India is well positioned to capitalize on increased opportunities coming from its burgeoning population.

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