10 Intriguing Facts About Real Estate in India - Home Insurance Blog - Tata Capital

10 Interesting Facts about Real Estate in India

Mar 08, 2017

The demonetization of the 500 and 1000 Rupee notes has caused widespread panic all over the country, and both individuals and entire markets have been affected by the move. Karan is one such individual who was rattled when this change was introduced.

His family was about to invest money in buying a house, but due to the widespread buzz about the real estate market collapsing, the plan was almost discarded. Karan clearly was not aware of the fact that the real estate industry would be the least affected. On the contrary, the deceleration of land prices due to the involvement of banks in funding makes the real estate market more approachable. You had no clue it worked this way, did you?

The real estate market is befuddling to the common buyer and most facts and figures about the industry escape our attention. Here are a few facts about the Indian real estate industry that we bet you didn't know!

Related: 5 Myths about real estate you are too smart to believe

  1. Building lives
    Though it might be shocking, after Agriculture, real estate is the second largest source of employment in India. It accounts for about 10% of the nation's GDP.
  2. Big Money
    India is home to the most expensive house in the world- Antlia, owned by Mukesh Ambani. At 27 stories, it is the tallest independent residence in India and can withstand earthquakes of magnitudes up to 8.0 on the Richter scale.
  3. Is the market growing
    There are 25, 00, 00,000 households in India, a number which exceeds the population of half of the world's countries. The percentage of households in urban areas has increased from 20% to 35% in the past 10 years, whereas the overall number of households has increased by 25%.
  4. What about Office space
    Connaught Place, New Delhi, ranks 7th when it comes to most expensive localities for office spaces in the world. The average annual cost per square foot is $150. To make it simpler, you would have to pay approximately 6-8 lakhs per month to rent a 1000 sq.ft. Office space.
  5. Love thy neighbor
    India houses the second largest residential colony in Asia. Kankarbagh, Patna is a neighborhood and residential area which is spread over an area of 900 acres. It has all the facilities of a mini-township including a sports facility, several restaurants, a park and multiple schools, hospitals and shopping complexes.
  6. A solid future
    Concrete is no doubt the most obvious choice for construction material. However, it wasn't always like this. Until 1961, only 13% of all households were built using concrete. This figure rose to a staggering 78% by 2011. This is a positive development as it implies the importance people of building sturdy, permanent houses.
  7. Warp speed
    With the advent of modular construction techniques and high-end on site assembly systems, India has quickly matched pace with highly developed countries such as the U.S., Japan and China. In 2012, a 10 storey building was constructed in Mohali, India, in a span of 48 hours, breaking records and setting new standards in the industry.
  8. Anyone at home?
    Out of the 25,00,00,000 residences, the number of houses lying vacant is 10.5 million. This is despite the need for approximately 19 million houses. This discrepancy is due to the huge gap between various income groups.
  9. Pump in the money
    Indian real estate is one of the largest sources of foreign investments. Up until 2015, a total of 7.7 billion USD was invested in Indian real estate by foreign sources. Additionally, the market is projected to get an additional 12 billion USD in investments over the next 5 years.
  10. A ginger-bread house
    Though not exactly made of bread, the Mattancherry Palace in Kochi has floors made of egg white, buttermilk and jaggery. It has an appearance similar to that polished black marble, but is actually made up of processed edible matter.

So how many of these cool real estate facts did you know?