By 2030, the industry is projected to generate 18–20% of India's GDP, according to the report.

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According to a combined study written by developers' organization Naredco and E&Y, India's real estate market is predicted to grow to a $1 trillion industry by 2030. The sector was estimated to be worth $200 billion in 2021, and the report presented at the Naredco Finance Conclave on March 3, 2023 stated that due to its enormous potential, it would rise to the predicted mark of $1 trillion in the following seven years. By 2030, the industry is anticipated to add 18–20% of India's GDP.

The study also claims that despite the expected 10 million unit housing shortage in metropolitan regions, there is a favorable demand-supply gap that will fuel the sector's development.

According to the study, 25 million additional cheap housing units will be needed by 2030.

However, it highlights the need for historic regulatory reforms to enable this expansion. According to the study, a fundamental change in industry dynamics in terms of discipline and openness is necessary to grow the sector to $1 trillion in size.

According to the study, the financing choices for housing developments in India include equity, private equity, AIF/mezzanine financing, pre-sales, and bank financing, which is mainly limited to construction finance with little flexibility.

The report's discussion of term loans and building financing notes that, typically, a term loan is offered for between 30 and 35 percent of the project. In the event of project delays and repayments starting before the production of excess cash flows, it is challenging to finance cost overruns.

"Without reorganization, tenor extension is not feasible, so this area needs to be focused on. According to the study, "funding through a mix of equity and pre-sales is highly reliant on construction completion. Limited variety in banking products compels borrowing through alternative channels in the event of shift in product dynamics.

The study also emphasizes that poor pre-sales, delays in property acquisition, and delays in approvals are typical causes of delays. Litigation also plays a significant part in the disruption of the supply chain, shifts in the market's characteristics, and environmental variables.

The report's discussion of term loans and building financing notes that, typically, a term loan is offered for between 30 and 35 percent of the project. In the event of project delays and repayments starting before the production of excess cash flows, it is challenging to finance cost overruns.

"Without reorganization, tenor extension is not feasible, so this area needs to be focused on. According to the study, "funding through a mix of equity and pre-sales is highly reliant on construction completion. Limited variety in banking products compels borrowing through alternative channels in the event of shift in product dynamics.

The study also emphasizes that poor pre-sales, delays in property acquisition, and delays in approvals are typical causes of delays. Litigation also plays a significant part in the disruption of the supply chain, shifts in the market's characteristics, and environmental variables.

Source From:- navimumbaihouses