Value of real estate under construction jumps to $243bn

The entry of large corporates and consolidation have led to the expansion of the Indian property market with the value of real estate under construction jumping over two-fold to $243 billion in the last one decade, according to a report by FICCI and Anarock.

The expansion of the property market was largely driven by the residential segment.

Property consultant Anarock and industry body FICCI pointed out that the number of developers has declined 53 per cent across India's top 14 cities between 2012-2019. "The Indian real estate sector has been undergoing constant metamorphosis since the turn of the century. This transition has been for the better and the accomplishments so far have been remarkable. The results are quite visible today as the sector has become better organised, compliant, accountable, and transparent compared to what it was during the last decade of the 20th century," the report said.

The sector saw a slew of structural reforms and policy changes which led to the elimination of weaker players, large-scale consolidation, and entry of large corporate houses, it added. "Until 2008, the real estate business was highly unregulated and more of a localised play. It was a sellers' market and was driven by the landlords who had become developers overnight to take advantage of the boom in the sector.