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Big businesses want a pie of rising realty shaking old guard's market grip
The Economic Times· 2025-11-19 03:51
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]
Netflix star of 'Owning Manhattan' opens Atlanta office as Georgia real estate heats up
Fox Business· 2025-03-25 14:02
Core Insights - Georgia's real estate market is currently experiencing significant demand from homebuyers, driven by both relocations and the establishment of secondary homes in cities like Atlanta and Savannah [1][6][10] - SERHANT, a New York-based real estate brokerage, has expanded into Georgia, launching operations in Savannah in February and Atlanta in November of the previous year [2][3] - The state's economy is vibrant, with a reported 3.1% growth in 2024 and the creation of 60,400 jobs, contributing to the real estate market's strength [5][10] Economic Factors - The presence of Fortune 500 companies in Atlanta and significant job creation in Savannah, including Hyundai's multi-billion-dollar investment, are key drivers of the local economy [3][10] - Georgia's real estate market saw over 121,500 closed sales and nearly 121,900 pending sales in the previous year, reflecting slight increases of 0.3% and 0.5% respectively [6] - The median sales price of homes in Georgia increased by 2.9% year-over-year, indicating ongoing demand in both urban and suburban areas [6] Market Trends - There is a notable balance in demand between urban and suburban areas, with a 50-50 split in buyer interest, influenced by lifestyle changes post-COVID [7][8] - Atlanta's entertainment industry, including a growing film and music scene, is attracting more residents and contributing to the real estate market's appeal [9] - The city experienced a 4.9% increase in pending home sales and a 3.4% increase in closed sales during 2024, showcasing a healthy market [10] Future Projections - SERHANT anticipates a potential tenfold increase in the Georgia real estate market over the next five years, contingent on job growth and interest rate trends [11][12] - The Selig Center for Economic Growth predicts Georgia's population will grow at double the national average by 2025, further supporting real estate demand [15] - By 2050, the Atlanta region is expected to see an increase of 1.8 million in population, indicating long-term growth potential for the housing market [16]