Big businesses want a pie of rising realty shaking old guard's market grip

Core Insights - Major Indian conglomerates are increasing investments in the real estate sector, driven by post-COVID-19 growth, enhanced transparency from regulatory reforms, and attractive returns, creating new competition for traditional developers [8] - The real estate market in India, currently valued at less than $1 trillion, is projected to grow to between $5 trillion and $10 trillion by 2047, significantly contributing to the country's GDP and urban development [4][8] - The entry of conglomerates is supported by improved regulatory clarity, favorable economic conditions, and opportunities to leverage existing land holdings, making the sector more appealing to investors [5][8] Industry Dynamics - Conglomerates like Godrej, Tata, Hero, Jindal, and others have been expanding their real estate operations over the past three to four years, intensifying competition for established firms such as DLF and Lodha [8] - Amit Goyal from India Sotheby's International Realty emphasizes that competition benefits both the industry and homebuyers, as conglomerates bring trust, governance, and access to lower-cost capital [8] - Pure-play developers possess extensive expertise in land acquisition and project delivery, which remains a competitive advantage despite the influx of conglomerates [8] Investment Trends - Jindal Realty plans to launch projects worth Rs 10,000 crore, while Hero Group and Max Group have also made significant expansions and acquisitions in the real estate sector [5][8] - Shreeram Group has entered the real estate market with a Rs 500 crore investment for a luxury project in Gurgaon, indicating a trend of diversification among traditional businesses [6][8] - Lohia Worldspace has raised Rs 50 crore for its first real estate project, showcasing the growing interest from various sectors in real estate development [6][8] Future Outlook - As India aims to become a $35–40 trillion economy by 2047, real estate is expected to play a crucial role in achieving the vision of Viksit Bharat, a developed and inclusive nation [7][8]