The document summarizes key trends in the Indian real estate market. Net absorption of office space increased in Q4'2020 and Q1'2021, with the top demand coming from the Central Business District and Secondary Business District in Gurgaon and Noida. PE/VC investments in Indian real estate grew from $4.1 billion in 2019 to $6.8 billion in 2020. Demand for commercial space in top 8 cities is expected to reach 39.3 million square feet by 2025, driven by a growing need for data centers. Government initiatives such as the Real Estate Regulatory Act and Goods and Services Tax have helped boost investment and formalize the industry.

1. 2,756
20,807
349,009
648,257
42,800
32,100
407,000
589,000
Central Business
District
Secondary Business
District
Gurgaon Noida
Q4'2020 Q1'2021
September I 2021
Net Absorption of Office Space
(sq. ft.)
SECTOR
COMPOSITION
PE/VC Investments in Indian Real Estate
(US$ billion)
Demand for Commercial Space In Top 8 cities
(mn sq ft)
28.0 29.0
33.2 33.0
39.3
2016 2017 2018 2019 2020
6.8
4.1
2019 2020
KEY
TRENDS
Market size Of Real Estate in
India (US$ bn)
MARKET
SIZE
Real Estate
Regulatory Act
Benami
Transactions Act
Goods and Services
Tax
• Robust demand: According to Savills India, real estate demand for data centres is expected to increase by 15-18
million sq. ft. by 2025.
• Increasing Investments: In the first-half of 2021, India registered investments worth US$ 2.4 billion into real estate
assets, a growth of 52% YoY. FDI in the sector (including construction development & activities) stood at US$ 51.5
billion between April 2000 and June 2021.
• Policy support: Under Union Budget 2021-22, tax deduction up to Rs. 1.5 lakh (US$ 2069.89) on interest on housing
loan, and tax holiday for affordable housing projects have been extended until the end of fiscal 2021-22.
• Attractive opportunities: In July 2020, the Securities and Exchange Board of India lowered the minimum
application value for Real Estate Investment Trusts from Rs. 50,000 to Rs. 10,000-15,000 to make the market more
accessible to small and retail investors.
GOVERNMENT
INITIATIVES
ADVANTAGE
INDIA
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120.0
650.0
1,000.0
2017 2025 2030
Cumulative Housing Demand-Supply in
Top 8 Cities (‘000 units) 2016-20
Note: LIG – Low Income Group, MIG – Medium Income Group, HIG – High Income Group
REAL ESTATE
25.0
647.0
351.0
1,982.0
1,457.0
717.0
LIG MIG HIG
Supply Demand