Investing in India’s Real Estate Renaissance with Realty Tracker smallcase

From swanky luxury apartments to high-yielding office spaces and data centre hubs, India’s real estate sector is transforming in scale and character. As one of the largest contributors to employment and economic activity, real estate is now firmly on the radar of long-term investors, both domestic and global.

The Realty Tracker offers a structured way to participate in this evolving growth story by investing in listed real estate developers and REITs that stand to benefit from the sector’s tailwinds.

A Sector on Solid Foundations

The Indian real estate sector is expected to grow from ₹14.8 lakh crore in 2021 to over ₹87.6 lakh crore by 2030, contributing nearly 13% to India’s GDP by 2025. This surge is underpinned by four sub-segments: housing, retail, commercial, and hospitality, which are all experiencing robust demand.

In FY23, residential home sales alone hit an all-time high of ₹3.47 lakh crore, growing 48% YoY in value and 36% in volume. Developers delivered close to 5.6 lakh homes across urban centres, with strong traction in the mid-income, premium and luxury segments.

The commercial office market too is on a roll. In 2023, gross leasing in the top 7 Indian cities crossed 6 crore sq. ft. for the first time, with technology, engineering, BFSI, and flexible workspace operators driving demand. Notably, leasing by flex-space operators grew 48% YoY.

Structural Drivers of Growth

1. Urbanisation and Demographic Tailwinds

India’s urban population is projected to add over 25 crore people by 2030, intensifying the need for quality housing, retail and office infrastructure. Yet, the current housing shortfall in urban India stands at ~1 core units, with a projected demand of 2.5 crore  affordable homes by 2030.

2. Luxury and Premium Demand on the Rise

Luxury homes priced at ₹4 crore and above saw a 53% rise in sales in 2024 across seven major cities, with nearly 19,700 units sold. This follows a 75% surge in 2023, indicating a shift in aspiration and purchasing power, especially among HNIs and NRIs.

3. Digital Economy, Data Centres, and New Asset Classes

The rise of the digital economy is creating demand for modern infrastructure from office parks and logistics hubs to data centres. Savills India estimates an additional 1.5–1.8 crore sq. ft. of data centre space will be needed by 2025.

4. Organised Retail and Mixed-Use Developments

Organised retail stock is expected to grow 28% to 8.2 crore sq. ft. by 2023. The physical retail boom continues with 4.1 crore sq. ft. of developments planned across major cities between 2024 and 2028, reflecting strong occupier interest.

Policy and Regulatory Push

The Indian government has played an active role in formalising and stimulating real estate growth. Key initiatives include:

• 100% FDI allowed in township and settlement development.
  
• PM Awas Yojana Urban 2.0, with ₹10 lakh crore investment targeting 1 crore urban families.
  
• Tax relief for homeowners: nil tax on two self-occupied properties and a higher TDS threshold on rent.
  
• SEBI’s framework for Small & Medium REITs (SM REITs) to deepen funding options.
  

Together, these measures are encouraging transparency, formalisation, and capital inflows into the sector.

Rising Investor Interest

Foreign institutional and private equity investors are bullish on Indian real estate. Key indicators:

• US$3.1 billion in foreign inflows annually, with 37% YoY growth in H1 2024.
  
• Private equity investment hit ₹35,300 crore in 2024, a 32% YoY rise.
  
• Blackstone, with existing investments worth ₹3.8 lakh crore, plans to invest another ₹1.7 lakh crore by 2030.
  

SEBI’s move to lower the minimum ticket size for REITs to ₹10,000–15,000 has also opened up real estate investing to a wider pool of retail investors.

The Case for Realty Tracker

Realty Tracker is a smallcase (Model Portfolio) that includes a curated basket of listed real estate companies and REITs. It allows investors to tap into India’s real estate boom without the complexity or illiquidity of direct property ownership.

This model portfolio provides exposure to:

• Leading developers that are driving growth in residential, commercial, and mixed-use projects.
  
• REITs offer access to high-quality rent-yielding assets like office parks and retail malls.
  

Realty Tracker offers a transparent, low-cost, and liquid route to participate in one of the country’s most resilient and reform-backed sectors.

Final Word

India’s real estate sector is no longer just a cyclical story; it is fast becoming a structural growth opportunity. With increasing formalisation, rising urban demand, policy tailwinds and growing institutional interest, the sector is entering a new phase of maturity.

Through Realty Tracker, you can now invest in this transformation not by buying physical property, but by backing the companies building India’s future.

Disclaimer: Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of a SEBI recognized supervisory body (if any) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

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