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India's real estate sector is projected to reach $180 billion by 2020 from $126 billion in 2015, according to a joint report by CREDAI and JLL.
Investment inflows in the housing sector since 2014 have been Rs 590 billion, about 47 per cent of the total invested money in real estate, it said.
The report also said that the contribution of the residential segment to the GDP would almost double to 11 per cent by 2020. Released on Wednesday at CREDAI Conclave 2018, the report traces 7 trends that will change the way real estate business will happen in the future in India. JLL also projected that the housing sector's contribution to the Indian GDP is expected to almost double to more than 11 per cent by 2020 up from estimated 5-6 per cent.
Regulatory reforms, steady demand generated through rapid urbanisation, rising household income and the emergence of affordable and nuclear housing are some of the key drivers of growth for the sector, the report said.
Sales figures are projected to improve with RERA bound to rebuild the trust deficit between buyers and developers, it said.
On GST, the report said it would lead to cost savings of 3-4 per cent. Prices would continue to remain dependent on demand and supply dynamics within micro-markets.
Apart from eight major cities, JLL said that cities like Nagpur, Kochi, Chandigarh and Patna could be growth centres.
The recent relaxation in the FDI has provided a huge boost to investment in the industry.
"Private equity and debt investments in real estate increased by 12% year-on-year across 79 transactions in 2017," the report said, adding that affordable housing and warehousing segments would attract huge investment going forward.
The affordable housing segment, which has been granted infrastructure status, would create avenues for developers.
Ramesh Nair, CEO and Country Head, JLL India said: “The time for change is now, which is evident in the recent developments. Game changing developments like RERA and GST have created a strong base for the sector to grow, which coupled with India's strong economic advancement have provided a perfect spring board.