Page 50 - CONSTRUCTION VISION July August 2017 issue

REPORT
INDIA`S PROPERTY MARKET IS POISED FOR STRONG GROWTH
‘ ‘ India`s property Market
sales are expected to
grow at a 14% compound
annual rate from 2016-20
and 18% from 2020-25
JULY-AUGUST 2017
48 CONSTRUCTION VISION
ith a young workforce and The projected growth in real estate for
an improving economy, India could offer similar opportunities
WIndia's real-estate market in a variety of related industries such
looks set for significant growth. Could as cement, paint and housing finance.
it match China's development boom?
India's young work force, which is The China Parallel
nearing home-buying age and stands
to benefit from the country's economic India's brightening economic future is
expansion, is expected to significantly critical to the country's projected
The confluence of factors, including a and sustain real gross domestic
drive the real-estate market over the
property sector surge. “If India can
maintain its political and social stability
next 10 years.
projected sharp increase in the
product growth of 6.5%-7.5% over the
next few years, it should generate
country's per capita income, further
strong employment and income
urbanization and a firmer federal hand
on regulations, could push annual
growth, both of which could drive
property sector demand,” says
property market sales, which were
property industry for Morgan Stanley.
2025, according to a recent Morgan
India's property market sales are
Stanley Research report.
‘ ‘ $105 billion in 2015, to $462 billion by Sameer Baisiwala, who covers India's
expected to grow at a 14% compound
annual rate from 2016-20 and 18%
Even more tantalizing are the
from 2020-25, according to Morgan
similarities to the rapid housing and
Stanley's analysis. This is comparable
construction development of India's
to China's 22% compound annual
neighbor to the north, China. Indeed,
growth rate from 2004-15.
China's property boom of the past 15
Other macroeconomic parallels
years may provide a glimpse into
abound. “To us, the macro construct of
India's potential growth in the next
China in 2000-04 and India in 2015
decade, with a construction boom and
appear quite comparable in terms of
increase in homeownership that has
size of the economy, affordability,
affected social and economic trends.