Architecture & Real Estate Investment Forecast 2022 – 2025
The architecture and real-estate industries develop structures that benefit the end-user greatly. Land, buildings, upgrades, planning and designing residential and non-residential structures, also creating places are all part of the real estate and architectural business. This globally recognized industry is the 2nd highest employment generator in India. As the sustainable building industry grows, green buildings are figuring effectively to drive the construction industry. Investments In recent times, the architecture and real estate industry has observed an increase in the growth of offices and residential areas. As per research, even amidst the pandemic, investors in India showed a great interest in institutional investments raising the estimated interest rate to increase by 4%. The rise in interest rates is likely to attract the attention of potential investors in the future. In terms of investments shown in the private estate industry, India managed to double the investment compared to the year 2020, estimated at a 2.9billion in only about the first half of the year 2021, this growth of investments observed in the year 2021 increases the probability rate for the future investments by the year 2025. In the past two years, the growth of exports done by the social-economic zones (SEZs) has grown by 13.6% in the year 2021 compared to 2019 has up to 7.96 lakh crore rupees (113 billion dollars). To make the market more relatable and open to smaller bidders and investors the SEBI (Securities and Exchange Board of India) decreased the minimum application value of real estate from 50,000 rupees to up to 15000 rupees. In 2021, India stood at 3.3 billion US dollars between January and September. The number of home sales increased by 113% year over year and completed 62800 units in the third quarter of 2021. Cities like Mumbai, Delhi, and Bengaluru gained 77% of total investments by the 3rd quarter of 2021, discerning this growth in investments, the flexible space stock market of India is likely to expand the current 36.5 million sq. ft by at least 15% YoY (year over year) in the upcoming three years. Growth & Market Size The real estate and architecture industry recorded about 1.72 billion dollars (Rs 12,000 crore) in the year 2019 and it is estimated to grow by about 65,000 crores by the year 2040. By 2030, India's real estate and architectural business are predicted to have grown from $200 billion in 2021 to $1 trillion in 2030, accounting for almost 13% of the country's GDP. Real estate sectors such as hospitality, retail and commercial have also grown significantly over the past few years while keeping a close eye on the public's expanding infrastructural requirements. India has collected up to US $29 billion through raised funds however as per research, Indian firms are expected to raise Rs 3.5 trillion through just real estate investments and infrastructure in 2022. As per estimation, the demand for real estate and architecture data centers by 2025 is likely to increase by 15-18 million sq. ft. In 2020, third-party logistics (3PL) accounted for about 34% followed by the e-commerce sector which accounted for 26% whereas office space leases accounted for 9%. The private equity investments observed in the fourth quarter of 2021 gained about 71% of the share through office segments whereas the retail sector accounted for 15% of the share and the warehouses as well as the residential sector gained about 7% each. Future Forecast The SEBI (Securities and Exchange Board of India) has approved the REIT (Real Estate Investment Trust), giving the industry a new platform. The growth of the business is beneficial since it encourages investors to participate in the Indian real estate market. As per estimation, the opportunity given by the SEBI will give the Indian real estate and architectural industry to grow by about Rs 1.25 trillion in the upcoming years. The future of the architecture and real estate industry is promising as it is up for future challenges by being prepared for the changes. The architectural industry has updated itself with every changing consumer base and globalization shift. The influx of foreign direct investment (FDI) into the architectural and real estate industry is boosting the industry's openness.
Tags : Architecture Real Estate Investment Forecast 2022 – 2025 Tanya Pandey Design Manager at Archohm REIT (Real Estate Investment Trust) SEBI (Securities and Exchange Board of India) Land buildings upgrades planning and designing residential and non-residential structures green buildings Tanya Pandey Design Manager at Archohm