India Has More Billion-Dollar Realty Firms Than China: Hurun Report

India's real estate sector now has more billion-dollar companies than China, according to the latest 2024 Grohe-Hurun India Real Estate 100 report. With India's realty sector showing robust growth on the back of higher wealth creation and more disposable income, the number of billion-dollar companies in India's realty space has risen to 36 so far this year, from around 10 in 2017.

India has pushed past China in terms of growth rate, whose real estate market is facing significant headwinds due to government clampdowns and demand slowdowns, the report said. "In mainland China, the number of listed companies valued at over a billion dollars declined from 100 to 30, while in the Hurun China 500, which has a threshold of $3 billion, the number dropped from 50 to just 10," it said.

China's market struggles with excess supply, high debt levels among property developers, and strict government regulations, which have made India's real estate sector a more attractive and stable investment destination, said Anas Rahman Junaid, founder and chief researcher at Hurun India.

India's market benefits from a young population, increasing urbanisation, and a growing middle class. Additionally, the implementation of the Real Estate (Regulation and Development) Act (RERA) has enhanced transparency and accountability, boosting investor confidence, he said.

The Real Estate (Regulation and Development) Act, 2016 is an Act of the Parliament of India that seeks to protect homebuyers as well as help boost investments in the real estate industry.

Junaid said as long as wealth creation in India grows and the government's focus on infrastructure development and urbanisation sustains, the Indian real estate market will continue to grow. “India's real estate sector is experiencing a remarkable boom, driven by a rapidly growing middle class, robust economic expansion, and increasing investments," he said.

Residential sales are expected to grow 10-12% in the current fiscal, with the middle class projected to reach 547 million by 2030, Junaid said. “Rising foreign investments of around $4 billion a year are further catalysing growth."

More Indian real estate companies are turning national from local or regional, and India has larger prospects to go global now and is increasing from the current six, the report stated.

The 2024 Grohe-Hurun India Real Estate 100 report has unveiled a record-breaking year for India's real estate sector, showcasing a cumulative growth of 70% among the country's most valuable realty companies. DLF Ltd. was ranked as the most valued real estate company, valued at over Rs 2 lakh crore.

This was followed by Macrotech Developers Ltd. and Indian Hotels Co., which held second and third spots, respectively. Godrej Properties Ltd., Oberoi Realty Ltd. and Prestige Estates Projects Ltd. held fourth, fifth and sixth places, respectively. Adani Realty marked its entry into the top 10 chart, ranking 7. It was tagged as the most valuable unlisted real estate company on the list.

Meanwhile, Mumbai continued to lead as the top real estate hub with 33 companies, followed by Bengaluru, New Delhi and Gurugram.

The sector is witnessing an increasing demand for home buyers and co-working spaces in India, and moreover, consumers are also shifting their focus towards making their properties smarter with "responsible luxury."

Consumers are opting for products and interiors that can add luxury to their properties but also ensure environmental sustainability, Priya Rustogi, leader, India and subcontinent at Grohe owner LWT IMEA, told NDTV Profit.

Post-Covid consumers are becoming more responsible towards the environment and sustainability. She pointed out that they are now asking questions around energy efficiency and water conservation, or how they can save and help the environment.

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