What could be amazing about real estate, you say. It’s just buildings and more buildings, isn’t it? Well, you may be right, but let’s not take such a narrow view of the realty sector. Here are the top 10 amazing facts about the real estate sector in India, which might help you visualize the industry in an entirely new perspective.
Second largest employer – The real estate sector in India is the second largest employer in the country; the first being agriculture. Moreover, opportunities abound in the real estate sector, as it is expected to grow a massive 30% over the next decade. It is also worthwhile to note that the housing sector alone contributes nearly 5-6 percent to India’s Gross Domestic Product (GDP).
Most expensive home in the world – The world’s most expensive home is located in the financial capital of the country, Mumbai. It’s the 27-storey Antilia, which is owned by Mukesh Ambani. Antilia is said to have been built at a cost of USD 1 billion. It has been designed to withstand earthquakes of up to 8.0 magnitude on the Richter scale.
An edible palace – Well, not exactly, but at least some of the raw materials used to build the floors of the Mattancherry Palace in Kochi comprised everyday food items such as egg white, buttermilk and jaggery. The palace appears to be made from polished marble, but the ingredients used are actually processed edible matter.
Second highest number of households – India has the second highest number of households at 248,408,494 households. Almost half of the countries in the world do not even have a population to match this figure. The country with the highest number of households is China.
7th most expensive office market – New Delhi’s Central Business District Connaught Place has been ranked as the 7th costliest office destination in the world. The annual occupancy cost here in 2016 was $149.71 per sq. ft.
Asia’s biggest residential colony – Kankarbagh in Patna is one of the biggest residential colonies in Asia. The colony is spread across an area of around 900 acres.
Massive growth potential – The market size of real estate sector in India is expected to reach a staggering $180 billion by 2020. It is estimated that during the period between 2008 and 2020, the realty sector would register a compound annual growth rate (CAGR) of 11.2%.
FDI magnet – The realty sector in India has attracted foreign direct investment (FDI) of $24.18 billion during the period between April 2000 and March 2016. Of the total FDI inflows in the country, the construction development sector alone accounted for cumulative inflows of 8.4%.
Huge demand – The top eight cities in the country will need around 4.2 million housing units during the period 2016-2020. The housing demand is highest in Delhi-NCR, forming 24-26% of the overall demand across various categories.
The irony: huge unsold inventory – Even when the demand for housing units is significant, more than 4.5 lakh homes remain unsold across top cities – Gurgaon, Noida, Mumbai, Kolkata, Pune, Hyderabad, Bengaluru and Chennai. Experts say that inappropriate location, higher prices, and lack of amenities are some of the reasons for the huge inventory in the real estate sector.