India’s Real Estate Boom: Anticipated 8% GDP Surge by 2024

In a recent report by JLL India, the Indian real estate sector is gearing up for substantial growth in the coming years, with projections indicating a potential 10 to 15 percent increase. Niranjan Hiranandani, Managing Director of Hiranandani Group, predicts that if the current growth momentum continues, India’s GDP could touch an impressive 8 percent by the end of 2024.

Hiranandani emphasized the role of real estate as a key driver of India’s economic growth, anticipating that it will outpace other sectors. The ripple effect of this growth is expected to boost the overall GDP. Despite global challenges, Hiranandani noted that the finance sector, BFSI, and IT sector in India are thriving. Notably, both mid-income and luxury residential segments have performed well, with significant infrastructure development around Mumbai.

The next 24 months are poised to bring a transformative period for real estate, with the inauguration of the Mumbai Trans-Harbour Link (MTHL) connecting Mumbai and Navi Mumbai by Prime Minister Narendra Modi. Additionally, the Mumbai Metropolitan Region (MMR) is set to witness a 300-kilometer Metro network. Hiranandani urged a focus on affordable housing in the upcoming 2024 budget, anticipating possible incentives or reduced interest rates for home loans.

Irfan Razack, Managing Director of Prestige Group, echoed the positive sentiment, stating, “The upcycle of real estate has started, and it is the third year post-Covid-19, with good demand. We are expanding in Mumbai and South India, receiving great responses.”

A boost in infrastructure is expected to benefit affordable housing, responding to the current demand. Razack emphasized that while luxury housing will thrive, the real volume is anticipated to come from mid-income housing.

According to JLL India’s report, the Indian real estate sector is set for substantial growth in the coming years, with a projected 10 to 15 percent increase. The residential segment witnessed a remarkable 26 percent surge in sales in 2023 compared to the previous year, reaching levels not seen since 2010. Bengaluru, in particular, outperformed the Mumbai real estate market in unit sales.

Looking ahead to 2024, industry experts anticipate a potential interest rate cut on home loans, further propelling growth in the real estate sector. The combination of infrastructure development, increased demand, and potential government incentives positions India’s real estate for a robust future.

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