“An Analysis of Booming of Real Estate Industry & its

Impact on India’s Economy W.R.T Realty Assistant”

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR

Master of Management Studies
(University of Mumbai)

2022-2024

Submitted by
Gaurish S. Chavan
Roll Number: - V08

Functional Specialization

SUBMITTED TO:

VPMs DR. V. N. BEDEKAR INSTITUTE OF MANAGEMENT STUDIES, THANE

 DECLARATION BY THE CANDIDATE

This is to certify project report entitled “An Analysis of Booming of Real Estate Industry &
its Impact on India’s Economy W.R.T Realty Assistant ” which is submitted by Mr Gaurish
S. Chavan in partial fulfillment of the requirement for the award of Master of Management
Studies, (University of Mumbai) Dr. V.N. Bedekar Institute of Management Studies,
comprises of my original work and due acknowledgment has been made in the text to all
other material used.

Wherever references have been made to intellectual properties of any individual /

Institution / Government / Private / Public Bodies / Universities, research paper, text
books, reference books, research monographs, archives of newspapers, corporate,
individuals, business / Government and any other source of intellectual properties viz.,
speeches, quotations, conference proceedings, extracts from the website, working paper,
seminal work et al they have been clearly indicated, duly acknowledged and included
in the Bibliography.

____________________________________
Date & Signature of
Gaurish S. Chavan
 CERTIFICATE BY THE GUIDE

This is to certify that project report entitled “An Analysis of Booming of Real Estate
Industry & its Impact on India’s Economy W.R.T Realty Assistant” which is submitted by
Mr Gaurish S. Chavan in partial fulfillment of the requirement for the award of Master of
Management Studies, (University of Mumbai) Dr. V.N. Bedekar Institute of Management
Studies, is a record of the candidate's own work carried out by him under my guidance.
The matter embodied in this report is original and due acknowledgment has been made in
the text to all other material used.

Guide's Name: Assistant Prof. Vishal Vedak

Authorized Signatory:

Date:
 TABLE OF CONTENTS

Sr. No Title Page No

1 Executive summary / Abstract 1

2 Introduction 2

3 Industry overview 5

4 Company Profile 8

5 Objective of Study 13

6 Literature Review 15

7 Research Methodology 18

8 Data Interpretation 19

9 Findings 50

10 Suggestions 52

11 Conclusion 53

12 Bibliography 54
Executive Summary

In India, second only to agriculture in terms of employment in India, the construction and
real estate industries are valued at almost US $12 billion and are expanding at a rate of
roughly 30% annually. The real estate industry contributes 5% of the GDP of the nation.
In the building industry, the average profit in India was 18%, double that of a project built
in the United States. The Department of Industrial Policy and Promotion India (DIPP)
reports that the housing and real estate sectors in India earned US$ 1.12 billion in Foreign
Direct Investment (FDI) during 2010 and 2011. The case provides an overview of Indian
real estate and a thorough study of current practices in comparison to more developed
global markets.

The life cycle of a property transaction is such that, starting at the time of land purchase
and continuing through its disposal and upkeep, all parties involved should safeguard the
interests of consumers collectively before focusing on the long-term goals of the various
industry players. It is a well-known truth that unqualified suppliers have entered the Indian
real estate market as a result of lower entry barriers, leading to a lack of sound business
practices among the bulk of the industry. Additionally, opaque methods and consumer
apathy have further compounded this problem. Maybe because of the way Indian real
estate is now, it is unintentionally trying to reach its own potential.

For stakeholders, the changing terrain offers a multitude of options. Opportunities for
investment and expansion include the creation of co-working spaces, logistical hubs, and
affordable housing programs. In addition, opportunities for portfolio optimization and
diversification are presented by the growth of the rental market and the introduction of real
estate investment trusts, or REITs.

In conclusion, despite shifting market conditions, technical advancements, and legislative

changes, the Indian real estate sector is developing. Notwithstanding ongoing difficulties,
stakeholders can take advantage of new opportunities by adopting innovation,
sustainability, and market-driven tactics to successfully negotiate the changing terrain.

1
 Chapter 1

INTRODUCTION

An Indian real estate market is a key indicator of both economic and urban dynamism,
from the bustling metropolises of Delhi and Mumbai to the up-and-coming centre of
Bangalore and Hyderabad. Its ability to innovate, adapt, and be resilient in the face of
adversity highlight its importance as a catalyst for economic growth, the creation of jobs,
and the accumulation of wealth.

Over time, India's real estate market has experienced significant changes due to a variety
of causes such as increased urbanization, changing demographics, technological
breakthroughs, and regulatory changes. This industry's development parallels the course of
India's economic growth, evolving from conventional brick-and-mortar buildings to
cutting-edge, tech-enabled ecosystems that are changing people's lives and skylines.

India's real estate market is a major contributor to the country's economic environment and
is deeply ingrained in both urban growth and social advancement. With its wide range of
residential, commercial, retail, and hospitality sectors, this business is a social change

2
indicator as well as a driver of economic progress. In this introduction, we explore the
various facets of the Indian real estate market, including its historical development, the
state of the market now, and the numerous opportunities and challenges that shape its
terrain. We negotiate the complex interactions between market dynamics, legal structures,
and socioeconomic variables that shape the industry's boundaries and lay the groundwork
for an in-depth examination of all of its facets.

We encourage readers to delve into the rich tapestry of opportunities, difficulties, and
transformations that characterize this essential sector as we set off on this voyage into the
world of India's real estate market. We peel back the layers of an industry that is about to
see unheard-of development and transformation, one that has the power to determine the
course of India's urban future, by having a deep awareness of its subtitles.

When a new administration took office in 2014, the industry was dealt a series of shocks,
including the introduction of the Real Estate Regulatory Authority (RERA), the Goods and
Services Tax (GST), demonetization, the act against benami property, and the insolvency
code. After demonetization, RERA, and GST, not only have new project launches become
insignificant in the residential real estate market, but house sales have also drastically
decreased. But in a market where returns on investment were unbelievable, overzealous
builders bit off more than they could chew, creating a tinder box-like situation that
necessitated structural reforms at a time when buyer sentiment was at its highest.

After looking over numerous articles, reports, and papers written by real estate industry
professionals, we discovered that the real estate industry has been under a lot of stress over
the past five years. The real estate industry lacks trust since there is no strong regulatory or
oversight authority. We also outline government initiatives and regulations aimed at
advancing the real estate industry and resolving its issues. After reading through several
articles, we offer a thorough remedy that will undoubtedly aid in the real state sector's
improvement.

The development and expansion of the socioeconomic sector are closely associated with
the real estate sector. The quality of life for residents can be enhanced by more housing
options that are both affordable and accessible, and the economy as a whole benefit from

3
increased infrastructure development and productivity. Through the wealth effect, which
occurs when home values rise and homeowners feel wealthier, house prices also indirectly
affect macroeconomic health by increasing aggregate demand and consumption.
India's residential real estate market is vibrant and intricate. various cities have various
housing markets due to the country's diverse economic and demographic makeup.

In big cities like Delhi and Mumbai, skyrocketing prices have sparked talk of a housing
bubble; however, prices in tier-II and tier-III towns like Kochi and Hyderabad have stayed
mostly unchanged (NHB, 2013). The need for housing has surged in the last few years as a
result of growing urban population density, rising per capita earnings, and expanding
housing finance penetration. The need for housing is already under pressure from the
expanding middle class, which is predicted to increase from 224 million to 583 million by
2025. The Indian government faces a number of obstacles in its efforts to improve access
to affordable homes and stabilize the housing market.

The government pursued tight monetary policy in 2012–13 in an effort to boost household
saving and increase liquidity in the face of growing inflation, fiscal deficits, and current
account deficits (Money-control, 2013). As a result, the industrial sector's investment
growth slowed down, which, combined with slowdowns in the four other sectors
agricultural, services, and industry—led to a drop in GDP growth to 5% in 2012–2013
(Money-control, 2013). Residential real estate markets have also declined, with prices
falling in Chennai and Kolkata by 2.3 percent and 4.1 percent, respectively, and in Delhi
and Mumbai by 0.5 percent and 1.5 percent, respectively (Kumar, 2013).
This paper's goal is to investigate how monetary policy and the macroeconomic
environment affect housing patterns.

I created a panel of fifteen cities for fifteen quarters since 2009 in order to test my
hypothesis. To take into consideration unmeasurable variables that are left out, I employ a
fixed effects model. My goal is to ascertain if housing price rise in large metropolitan
areas is positively influenced by fixed effects. I then look into whether the Indian
economy's slowdown between 2010 and 2011 has affected the rise in home prices.
Previous research on India's residential real estate markets has examined national average
home prices as well as specific city analyses, including Mumbai (Gandhi, 2000).

4
Although the Indian real estate market is expanding at a rate of roughly 20% annually and
has been contributing roughly 6-7% of the country's GDP, it is unable to maintain supply
and demand equilibrium. Over the past ten years, there has been an exponential increase in
the demand for homes. Despite the government's best efforts and a number of programs, it
has not been able to keep up with the growing needs. By seizing the opportunity, the real
estate industry was taken over by private companies, who showed little regard for
customer demand. This industry has been experiencing a slowdown over the past five
years due to a number of causes, including industry limitations, frequent changes in
government regulations, and a slowing economy.

In this paper we outline the real constraint issue and details, critically analyze the current
trend and pattern of various real estate sector factors, and present some corrective steps
that would help the sector return to its glorious past where it was growing magnificently.

approximately 40 million people were employed in this sector in 2013, and estimates
indicate that number would rise to approximately 52 million by 2017 and 67 million by
2022. Building construction accounts for around 90% of the workforce in the real estate
and construction industries; the other 10% works in demolition, site preparation, electrical,
plumbing, and other installation services, as well as building completion and finishing.
Every research firm and investment LLP predicted that this sector would increase by 13%
since the decade began in 2010, but it wouldn't be fair to argue that the last five years have
been the hardest for the Indian real estate market.

We examine various newspaper articles, web portals, and reports from various government
agencies as part of our research. We also read through a number of research studies on the
Indian reality sector published by rating organizations like ICRA, JLL, and E and Y. We
also conducted a thorough analysis of the MP and Indian government regulations
pertaining to affordable housing and the reality industry.

Source https://www.irjet.net/archives/V7/i4/IRJET-V7I4903.pdf

5
Reasons for growth of Real Estate Industry

The real estate market is expected to increase from Rs. 12,000 crore (US$ 1.72 billion) in
2019 to Rs. 65,000 crore (US$ 9.30 billion) by 2040. India's real estate market is predicted
to grow from US$ 200 billion in 2021 to US$ 1 trillion by 2030, and by 2025, it would
account for 13% of the nation's GDP. The sectors of retail, hospitality, and commercial
real estate are also expanding rapidly, contributing to the infrastructure that India's
expanding requirements require.

By 2047, the real estate industry in India is predicted to grow to a value of US$ 5.8
trillion, accounting for 15.5% of the country's GDP, up from its current 7.3% share.

India's residential real estate sector saw a strong 48% year-over-year gain in FY23, with
the value of home sales hitting an all-time high of Rs. 3.47 lakh crore (US$ 42 billion).
Along with a robust growth trajectory, the volume of sales increased by 36% to 379,095
units sold.

Nearly 558,000 homes will be completed by Indian real estate developers in the nation's
biggest cities by 2023, marking a noteworthy accomplishment.

In the first nine months of FY22, approximately 1,700 acres of land were sold in the top
eight cities in India's real estate market. Between 2017 and 2021, foreign investments in
the commercial real estate market total to US$10.3 billion.

A multitude of reasons have contributed to the real estate industry's rise, including:

 Population Growth: As the population grows, so does the need for homes and
businesses, which drives up real estate development costs.

 Urbanization: As more people move into cities, the demand for homes, offices, and
retail establishments rises, propelling the real estate market's expansion.

6
 Economic Development: Rising economic activity increases the demand for
residential and commercial real estate. Increased investment in real estate
development is frequently a result of robust economies.

 Low Interest Rates: Developers and investors are more inclined to take on new
projects when interest rates are low, which promotes the expansion of the real
estate sector.

 Infrastructure Development: The construction of new roads, airports, and public

transportation systems can improve an area's appeal to buyers of real estate.

 Infrastructure Development: By improving an area's appeal to real estate investors,

infrastructure projects like new highways, airports, and public transportation
systems can spur development in that area.

 Foreign Investment: As a result of globalization, there is a rise in international real

estate investment. Numerous global locations have experienced growth as a result
of foreign investors' frequent search for reliable markets in which to engage in real
estate.

 Changing Demographics: Changes in household sizes or aging populations can

have an impact on the kinds of properties that are in demand, which might open up
new possibilities for real estate development.

 Technological Advancements: New kinds of investment, such real estate

crowdfunding and digital platforms for property transactions, have been made
possible by technological advances that have revolutionized the real estate sector
by streamlining procedures and enabling new forms of investment.

7
  Government Policies: Government initiatives, such tax breaks or zoning laws, can
have an impact on real estate investment choices and development trends, either
promoting or impeding the expansion of the sector.

 Environmental Factors: As environmental sustainability has gained more attention,

eco-friendly infrastructure and green buildings have been developed, opening up
new business prospects and spurring the real estate industry's expansion.

Overpricing of commercial or residential property results from the exponential increase in

land and real estate prices in India over the past ten years. More than equity or gold, real
estate has emerged as India's most desirable investment destination in recent decades.
Moreover, real estate brokers and agents regularly purchase and sell real estate using their
own funds, which drives up property values. Due to inadequate record keeping and the
split of land into multiple sections until independence, the land titles remain unclear. The
issue is being made worse by the glacial speed at which land records are being
modernized. Additional government action in the form of requiring developers to produce
at least 20% affordable housing, which will ultimately fall on the remaining 80% of the
market.

Land acquisition and high taxes, such as VAT and stamp duty, are two more significant
issues the real estate industry faces.

The fact that, despite high demand in the real estate market, over 30% of homes and
commercial spaces are unoccupied in big cities like Delhi or Mumbai attests to all the
above concerns.

The Real Estate (Regulation and Development) Bill was thus introduced by the Indian
government to address the aforementioned problems. In order to safeguard consumers and
standardize business operations, it aims to regulate contracts between buyers and sellers in
the real estate industry. It creates state-level regulatory bodies responsible for registering
residential real estate projects.

8
 Chapter 2

Industry Overview

The real estate sector is one of the most globally recognized sectors. It comprises of four
sub-sectors - housing, retail, hospitality, and commercial. The growth of this sector is well
complemented by the growth in the corporate environment and the demand for office
space as well as urban and semi-urban accommodation. The construction industry ranks
third among the 14 major sectors in terms of direct, indirect and induced effects in all
sectors of the economy.

In India, the real estate sector is the second-highest employment generator, after the
agriculture sector. It was also expected that this sector will incur more non-resident Indian
(NRI) investment, both in the short term and the long term. Bengaluru was expected to be
the most favoured property investment destination for NRIs, followed by Ahmedabad,
Pune, Chennai, Goa, Delhi and Dehradun.

The process of developing real estate includes buying raw property, rezoning it, building
it, renovating it, and then selling or leasing the completed asset to end users. Developers
profit from the risk of funding a project and from increasing value to the land through the
construction of structures or renovations, rezoning, etc. Development companies produce
fresh inventory or a new product, which is referred to as the "primary market." Sales and
marketing companies collaborate with developers to market the structures and apartments
they design.

These companies create all marketing collateral and use their sales representatives to sell
the completed unit inventory, earning a commission in the process. These businesses
usually concentrate on new units.

Since almost all properties and projects require leverage, or debt, to finance their
operations, lenders play a significant role in the industry. Banks, credit unions, private
lenders, and governmental organizations are examples of lenders.

9
The booming Real Estate Industry in 2024

The real estate sector in 2024 is seeing a significant boom, driven by several factors:

Population Growth: Increasing urbanization and population growth in many regions are
fueling the demand for housing, both residential and commercial.

Low Interest Rates: Central banks have likely maintained historically low interest rates,
making mortgages more affordable and stimulating demand for property purchases.

Technological Advancements: Technologies like virtual reality tours, digital

documentation, and online property listings have streamlined the buying and selling
process, attracting more investors and buyers into the market.

Investment Opportunities: Real estate remains a popular investment choice due to its
potential for long-term appreciation and steady income through rental properties.

Infrastructure Development: Government investments in infrastructure projects, such as

transportation networks and urban redevelopment, can increase property values in
surrounding areas and spur real estate development.

Demand for Green Spaces: As environmental issues gain more attention, there is a greater
need for eco-friendly and sustainable communities and structures, which is spurring
innovation in the real estate development industry.

Remote Work Trends: Increased demand for larger homes with designated office spaces
and outdoor spaces is a result of the shift towards remote work arrangements.

10
Impact of booming of Real Estate Sector

POSITIVE IMPACT NEGATIVE IMPACT

Economic growth Affordability challenges

Increased wealth Speculative behaviour

Infrastructure development Environmental impact

Tax revenue Infrastructure strain

Financial sector growth Debt risk

Ultimately, authorities must address related issues to promote sustainable and equitable
growth, even though a rising real estate sector can have major positive economic effects.
This could entail taking steps to alleviate the effects on the environment, control
speculative activity, finance infrastructure, and support affordable housing.

There are prospects for high-quality buildings that satisfy the needs of today's investors
and tenants, despite the economic headwinds and the difficulties in obtaining loans. To
thrive in this era of higher-for-longer interest rates, businesses must learn to modify their
growth strategy.

An increase in transaction volume is anticipated, albeit it might not happen until 2024. It
will not necessarily depend on the Fed cutting interest rates. Before then, as people begin
to transact again and become accustomed to the new, higher rates, it might happen.

Chapter 3

11
 Company Profile

Realty Assistant

Realty Assistant is a technology-driven real estate consulting firm that was founded in
2019 and offers a variety of residential and business properties. Founded with the goal of
enhancing customer satisfaction and trust in the real estate industry, our primary focus is
on offering investors comprehensive property management services both domestically and
internationally. As the go-to real estate manager for over 45,000 satisfied customers,
Realty Assistant has become the most reputable real estate advisor in India.

with the intention of offering creative answers to the evolving dynamics of the real estate
market. With trust, accountability, and an unmatched degree of openness, our goal is to
become the industry leader in property management services in India. Our goal at Realty
Assistant is to promote a spirit of cooperation, innovation, and honesty that goes above
and beyond the typical standard in order to modernize the buying, selling, and real estate
investing process. Our essential values with our clients are honesty, transparency,
integrity, and trustworthiness.

Since its founding, Realty Assistant has experienced significant growth as a result of our
dedication and our clients' trust in us. We have grown in a short period of time, now

12
operating in several US cities as well as internationally in the USA, Canada, UAE, and
Singapore.
With our main office located in Noida, we employ over a thousand people in various cities
throughout India. We are continually growing our reach, with offices in Delhi NCR,
Lucknow, Ghaziabad, Varanasi, Prayagraj, Agra, Gorakhpur, Patna, Ranchi, Kodarma,
Mumbai, Pune, and Bengaluru.

Why Opt for Realty Assistant?

We acknowledge the abundance of possibilities in a competitive market with as much
diversity as India. We lead the industry in client satisfaction and trust-building as a Noida
property management service provider for a variety of reasons.

Choosing Realty Assistant as your personal property manager makes sense for the
following reasons:

 A deliberate presence both domestically (PAN India) and internationally.

 To establish trust, there should be complete openness in the management of
workflow between clients and important stakeholders.
 Advocacy for trust: Our most notable advocate is our rising clientele, which is
growing.
 All-inclusive 360-degree assistance and solutions concerning property
administration and advisory services.
 Inventory brand width: We offer an enormous selection of project possibilities
thanks to our more than 500 developer clients in India.
 The provision of last-mile solutions through a specialized customer delight
department and a robust and efficient post-sales infrastructure.
 Solutions for every facet, such as mortgages, loans, insurance, and financing, are
offered by a committed group of specialists in every field.
 Strong client retention through asset, portfolio, and individual asset management.

Kinds of real estate that Realty Assistant offers

More than 500 developers are listed on the properties of Realty Assistant, a company

13
 that offers real estate property management services. We try to offer our clients as
many of the greatest options as we can. We cover everything, from homes suitable for
residential and business use to leasing services.

 Townships that are Integrated

 Project for Group Housing
 Apartments for services
 Plots, independent homes, and villas
 Office, retail, and institutional areas
 Commercial studio apartments
 Leasing of Commercial IT/ITES

What Realty Assistant actual do:

 End to End delivery

 Inventory scale
 Investment facilitation
 Last Mile delivery

(Source : https://realtyassistant.in/ )

14
 Chapter 4

Scope of study

This study focuses on the present level of consumption of various OTT platforms as well
as the anticipated consumption in the future. As a result, this would assist in offering
statistical analysis of the preferences of various clients. Additionally, the study would be
useful for determining the opinions and experiences of various OTT platform consumers.

Significance of the study

In one way or another, the COVID-19 pandemic has had a negative influence on almost
every industry. The OTT platforms underwent adjustments throughout these times and
reached a new stage of development. In general, and not just among young people, OTT
platform usage has increased. According to the researchers, the world's largest and fastest-
growing OTT market is India. As a result of the simplicity with which these platforms
make it possible to access entertainment from around the globe, the use of over-the-top
services has expanded.

Objective of Study

 To understand the difference between boom and growth into the Real Estate market

 To understand the use of Digitality into the sales of Real Estate

 To determine the impact of Real Estate market onto the National Economy

 To forecast the market capitalization of Real Estate until 2027

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 Chapter 5

Literature Review

1. A Study on Customer Perception towards Online Property Sales

The definition of "real estate" is "land," which includes any buildings or other structures
on the land as well as the air above and below it. Land plus everything that is affixed to it
permanently, such as sheds, buildings, and other objects. Despite the fact that the media
frequently discusses the "real estate market" from the standpoint of residential living, real
estate can be broadly classified into three categories: commercial, industrial, and
residential. Undeveloped land, homes, town homes, condos, office buildings, retail store
structures, and factories are a few examples of real estate.

Currently, the growth of India's basic infrastructure is greatly aided by the real estate and
construction industries. In India, one of the key industries for earning income is real estate.
Every asset has a value that depreciates with time investing in Property is thought to be the
best option because the likelihood of loss is minimal. The nation's economy is directly
impacted by the expansion and improvement in this industry.

In India, owning a property is a source of great pride for an individual, who develops a
strong relationship to it. It is also India's most profitable investment. It is noted that the
real estate sector's growth graph is increasing daily.
The growth of the real estate sector is correlated with advancements in the retail,
hospitality, and entertainment sectors (hotels, resorts, movie theatres), as well as with
economic services (hospitals, schools), and IT-enabled services (such contact centres). The
Indian real estate market has historically been controlled by several small, regional firms
with comparatively tiny low amounts of financial resources and/or skills.

The industry has historically relied on high Net-worth individuals and other unofficial
sources of financing rather than institutional money, which has resulted in low levels of
transparency. As the industry grew, this scenario changed as well, and as of right now, the
real estate.

The dynamics of the sector mirror consumers' demands for greater quality as India's
economy becomes more integrated with the rest of the world.

16
There have been several research articles in the real estate area. This section examined a
few of the articles from that list. In their 2011 paper, Bansal, Sirohi, and Jha Manish
clarify that the real estate industry is essential to the formation of townships and SEZs
(Special Economic Zones). It also aids in the town's transformation into a city.

Additionally, they elucidate the notion of "green" building, which has been embraced by
the industry, attesting to a notable focus on sustainability consideration. They clarify that
real estate developments and infrastructure development occur together just before. This
paper provides an overview of the Indian real estate industry's activities across for
commercial or residential purposes.

Additionally, they split this industry into three divisions. In the first, they described the
fundamental factors—such as supply, demand, property, use restrictions, and site
characteristics—that determine the real sector value. The reasons for the current real estate
boom in India and its limitations were covered in the second and third sections,
respectively.

Source https://www.scribd.com/document/260864861/Phase-2-Literature-Review

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 2. A Study on Real Estate Financial Risk

This paper primarily focuses on the relationship between real estate price fluctuation and
financial risk, real estate bubble, the formation and transmission of real estate financial
risk, and the control of real estate financial risk. It begins with a brief conceptual
explanation and background introduction of real estate finance and its risks. A study of
related research was conducted and several research categories were defined.

In summary, it indicates that China's research on real estate financial risk also has the
following issues and areas for improvement: more needs to be done to improve the
research on the meaning of real estate financial risk; quantify the research on real estate
bubbles; deepen the understanding of risk formation mechanisms; combine research on
risk transmission with Chinese reality; and enhance empirical research on real estate
financial risk.

The real estate industry, being capital-intensive, exhibits a significant reliance on finance.
Real estate finance, pertaining to real estate, encompasses various financial activities such
as investment, financing, and related services facilitated through currency circulation and
credit channels during real estate processes. By supporting real estate industry growth, real
estate finance enhances financial functions utilizing real estate as a special conduit,
thereby constituting a primary source of financial risks.

India has currently established a real estate financial system primarily centred on
commercial banks, catering to real estate development and housing consumption needs.
This industry has positively impacted urban residents by facilitating house purchases,
elevating housing investments, boosting domestic demand, and fostering national
economic progress. Nevertheless, challenges like market imperfections, limited financing
options, and inadequate product innovation capabilities have surfaced alongside the rapid
evolution of real estate finance. Rental income surpasses both bank deposit rates and
personal housing loan rates while house prices continue to soar, leading to heightened
financial risks. With alternative investment avenues restricted, a substantial portion of
capital has shifted towards property acquisition for value preservation and appreciation,
further exacerbating real estate financial risks. Given the significant influence of the real

18
estate sector on the overall economy, the sector's inherent financial risks pose threats to
financial system stability and macroeconomic equilibrium. Therefore, conducting in-depth
research on real estate financial risks holds paramount theoretical and practical
significance.

Scholars domestically have embarked on exploring real estate financial risks starting from
land rent theory and subsequently delving into the interplay between real estate, financial
frameworks, and macroeconomics at both macro and micro levels. This study initiates by
defining and categorizing real estate financial risks, subsequently reviewing research on
the correlation between real estate price fluctuations and financial risks, real estate
bubbles, the generation and dissemination of real estate financial risks, and the strategies
for mitigating such risks.

Source https://www.scirp.org/journal/paperinformation?paperid=91919

19
 3. Behavioral Basis of Real Estate Investment

The behavioral biases stemming from the psychological aspects of human nature can
result in decisions deviating from rational analysis expectations. While behavioral biases'
impact on financial markets such as stocks and mutual funds has been extensively
researched, the real estate sector remains relatively unexplored. Prior works in real estate
have concentrated on various biases; however, there is a lack of comprehensive
documentation on these studies.

Therefore, this article aims to address this gap by reviewing articles sourced from Scopus
and the Web of Science database, spanning from 1980 to 2022. Utilizing the PRISMA
model, 86 articles were selected for review, unveiling that anchoring bias, loss aversion,
and herding bias have been thoroughly examined. Conversely, biases like gambler's
fallacy, familiarity bias, framing bias, home bias, confirmation bias, and mental
accounting have received less attention. The paper underscores significant gaps in current
research, paving the way for future investigations.

Specifically, it notes that only a handful of biases have been extensively studied, leaving
ample room for further exploration, especially through primary data analysis. Furthermore,
there is a scarcity of studies from developing nations that necessitates attention. Lastly,
research should delve into the interaction among various biases to develop a more
comprehensive model explaining their effects. The paper not only enhances
comprehension of different biases and their influencing factors but also aids policymakers
in devising strategies to mitigate biases' adverse impacts on business operations.

Source https://www.nature.com/articles/s41599-023-02366-7

20
 Chapter 6

Research methodology

The study has used secondary data. A research methodology outlines the methods and
strategies for finding and evaluating data related to a particular study topic. It's a method
by which scientists plan their investigation to best meet their goals with the chosen
research tools.

Secondary data

The secondary data has been collected from standard reference book and various websites.
Secondary data sources are quite beneficial. They enable the creation of sizable, excellent
databases by researchers and data analysts that aid in the resolution of company issues.

Data collection

 Realty Assistant official website

 Market Reports
 Financial Statements of IBEF
 Industry Experts

Limitations

 Market volatility
 Financial Challenges
 Technology
 Economic downturn
 Environmental conditions
 Government policies

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 Chapter 7

Real Estate Growth in Mumbai, Ahmedabad & Bengaluru

Real estate investment in India serves as a fundamental element for the accumulation of
wealth, providing a physical asset that increases in value over time. Within the context of
the nation's swift urbanization and economic advancement, the real estate industry has
expanded significantly, offering profitable opportunities for potential investors.

Due to its ability to produce passive income through rent and substantial capital growth,
real estate investment not only ensures financial stability but also enhances the
diversification of investment portfolios. However, individuals seeking to invest in real
estate in India without prior expertise or understanding of the industry may be pondering
about the optimal city for such investments.

India's varied landscape comprising bustling metropolises, expanding planned urban

regions, and evolving towns contributes to the attractiveness, each presenting distinctive
possibilities for residential, commercial, and retail investments. As urban populations
increase and the pool of potential investors grows, the demand for high-quality housing
and commercial properties escalates, thereby boosting the sector's expansion. This article
by L&T Realty delves into the prime cities in India for real estate investment, where the
intersection of infrastructure development, economic vibrancy, and demographic patterns
establishes a fertile ground for investors aiming to leverage the nation's real estate market
and future growth prospects.

This is among the primary causes of Bangalore's real estate market's continued health.
Unlike other cities like Mumbai, the National Capital Region, and others, Bangalore did
not experience any price increases during the country's boom period, despite a significant
price correction. The primary cause is the three years of price correction from 2008 to
2011. Major cities like Mumbai, however, saw a boom in demand between 2009 and 2010.
Due to inadequate sales, project-level prices in Bangalore were corrected between 2009
and 2011.

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 Chapter 8

Finding

Based on objectives

1. To determine the factors influencing the purchase of Real Estate

 Purchasing real estate is a difficult undertaking since it requires taking into account
a number of factors, some of which are unique to each person.

 There are six main elements that consumers consider when purchasing real estate:
location, affordability, design, accessibility to public amenities, security, and
luxury.

2. To understand the buying behavior of Customers with reference to the change

in pre & post of COVID-19 pandemic

 Using both qualitative and quantitative methodologies, the essay investigates the
factors influencing investment decisions in Indian real estate market during the
epidemic.

 Institutions, laws, economy, culture, society, other marketplaces, and investment

opportunities are important considerations.

 The authors provide market development strategies, but they also cast doubt on
their applicability in the post-pandemic era.

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3. To understand the Impact of Real Estate Market on India’s Economy

 The real estate market is expected to increase from Rs 12,000 crore in 2019 to Rs
65,000 crore by 2040. India's real estate market is predicted to grow from $200
billion in 2021 to $1 trillion by 2030, and by 2025, it would account for 13% of the
nation's GDP.

 An important part of India's GDP is contributed by real estate. Activities like

building, real estate transactions, housing financing, and related services are among
the sectors that have a direct and indirect impact on the economy and significantly
increase overall economic production.

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 Chapter

Suggestion

 In the upcoming years, affordable housing is anticipated to play a significant

role in driving the Indian real estate market. Affordable housing developers are
probably going to have an advantage over other developers in the market.

 In an effort to lessen the environmental effect of buildings, developers are

progressively implementing eco-friendly techniques including waste
management, solar energy, and rainwater collection. In the long term, green
buildings prove to be a financially viable and ecologically conscious choice for
both prospective homeowners and investors.

 Developers are likely to stay ahead of the curve if they use innovation and
technology to improve customer experience and streamline processes.

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 Chapter 9

Conclusion

India's real estate sector is expanding at a rate never seen before because to strong
demand, encouraging laws, and calculated strategies. According to projections, the market
is expected to reach a stunning $1 trillion by 2029 and continue to grow, reaching $5.8
trillion by 2047. Mumbai's real estate market is thriving, and investors and purchasers can
choose from a number of investment options. World-class developments by Lodha attest
to the industry's expansion and the company's dedication to producing high-caliver
projects.

Mumbai's real estate market has grown throughout the years due to a variety of factors,
making it one of the country's most active and dynamic. Mumbai real estate trends are
anticipated to maintain their growth trajectory in 2024 due to the growing demand for
residential and commercial properties as well as the continuous economic recovery.

The market for residential and commercial properties in Mumbai was greatly affected by
the COVID-19 outbreak. However, since things have improved, it is anticipated to
improve more as developers adjust to the shifting market conditions. In 2024, the real
estate market in Mumbai will be driven by the city's expanding population.

However, obstacles including rising building prices, cash flow problems, and legislative
changes could have an effect on the market, according to the most recent Mumbai real
estate market projection. In order for developers, investors, and homebuyers to make wise
judgments in the Mumbai real estate market in 2024, it would be essential for them to
comprehend these issues and their possible effects.

Developers, investors, and buyers of real estate in Mumbai who keep up with current
developments and predict future trends will be the most successful in the city's vibrant real
estate market in 2024 and beyond. Visit Adani Realty if you're interested in making an
investment in Mumbai's real estate market. They provide a wide selection of properties for
investors in all price ranges.

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 Bibliography

Websites

https://realtyassistant.in/#

https://www.scribd.com/document/260864861/Phase-2-Literature-Review

https://www.irjet.net/archives/V7/i4/IRJET-V7I4903.pdf

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