Why Investors Should Consider Entering the Real Estate Market: Insights from RISE Infraventures' Sachin Gawri
Sachin Gawri, founder and CEO of RISE Infraventures, discusses the promising potential of the real estate market in the Delhi-NCR region, particularly in Gurugram and along the Dwarka Expressway.
Real EstateDelhincrInvestmentLuxury HousingDwarka ExpresswayReal Estate MaharashtraDec 04, 2024
The real estate landscape in Gurugram and the Dwarka Expressway region is expanding rapidly. Rising incomes, a robust local economy, and a growing preference for gated, amenity-rich communities are fueling this growth. In an interview with a leading business publication, Sachin Gawri delves into the factors contributing to this boom and why 2025 is poised to be a defining year for the sector.
Performance of India's Real Estate Market in 2024
2024 has been a landmark year for India’s real estate market. From a consultant’s perspective, the resilience and adaptability of the sector stand out. On the residential front, over 225,000 units were sold in the first nine months of 2024, backed by 215,000 new launches. The luxury segment, which now contributes 16% to sales, up from just 6% in 2019, shows a significant shift in buyer preferences toward premium housing.
The retail sector, despite limited new additions, absorbed 4.5 million sqft, demonstrating its resilience. The office market also performed exceptionally well, with leasing activity hitting record levels and absorption projected to touch 70 million sqft by year-end. Global companies, particularly GCCs, contributed up to 40% of the total leasing, highlighting India’s growing appeal as a business destination. Equity inflows are expected to reach $10-11 billion this year, further underscoring the market's robustness.
Outlook for India’s Real Estate Market in 2025
The year 2025 is shaping up to be an exciting year for real estate, with a projected Compound Annual Growth Rate (CAGR) of 9.2% over the next five years. The sector is poised for sustained growth, driven by technology, sustainability, and evolving consumer preferences. Buyers today are more informed and are looking for smart, future-ready homes.
For investors, this is the perfect time to enter the market. Whether it’s premium housing, commercial spaces, or mixed-use developments, there are ample opportunities for capital appreciation. India’s real estate market is growing fast, and 2025 will be a defining year in this journey.
Extraordinary Price Growth Along Dwarka Expressway
The growth along Dwarka Expressway has been phenomenal, with prices doubling from around Rs 8,630 per sq. ft. in 2021 to Rs 17,357 in mid-2024. The primary driver of this growth is infrastructure. The inauguration of the elevated 19-km stretch of Dwarka Expressway has significantly improved connectivity between Gurugram and Delhi. The proximity to the airport and the development of economic hubs like the Delhi-Mumbai Industrial Corridor (DMIC) further enhance the area's appeal.
Forward-thinking policies, such as Haryana’s Transit-Oriented Development (TOD) initiative and the proposed metro extension, are game-changers for connectivity and overall livability. NRI buyers, who see these properties as a mix of investment and lifestyle, have also played a significant role. This combination of strategic location, strong demand, and world-class infrastructure makes Dwarka Expressway an unparalleled investment choice.
Gurugram’s Real Estate Market and Luxury Housing
Gurugram has long been a preferred destination, but the recent surge in the luxury housing segment is remarkable. Areas like the Southern Peripheral Road (SPR) and Dwarka Expressway have become prime locations for high-end residential projects. The demand is driven by rising incomes, a robust local economy, and a growing preference for gated, amenity-rich communities. NRIs, who view luxury homes as high-potential investments, have also contributed to this trend. From RISE Infraventures' perspective, this growth is far from slowing down, and Gurugram is poised to remain the hub for luxury living in the NCR.
RISE Infraventures’ Success and Ambitions
RISE Infraventures is on track to achieve its ambitious Rs 4,000 crore sales target for FY24-25. This success is attributed to a combination of market strategy and client-centricity. The luxury housing segment has been a significant driver, with the company’s team effectively tapping into this demand. Last year, RISE Infraventures saw over 100% growth in sales, providing the momentum to aim higher.
Expanding the company's footprint has been a crucial part of its strategy. RISE Infraventures opened five new offices, including two in Mumbai, and increased its workforce by 55%. These expansions allow the company to serve clients better and tap into emerging markets. The introduction of new verticals like RISE International, catering specifically to NRI clients, and RISE Homes, focusing on the luxury segment, are designed to meet evolving client needs and solidify the company’s leadership in the real estate sector.
Ultimately, RISE Infraventures aims not just to grow as a company but to redefine what excellent service looks like in the industry. This commitment drives the company every day, ensuring sustained success and client satisfaction.
Frequently Asked Questions
What are the key factors driving the growth in the luxury housing segment in Gurugram?
The growth in the luxury housing segment in Gurugram is driven by rising incomes, a robust local economy, and a growing preference for gated, amenity-rich communities. NRIs, who view these properties as high-potential investments, have also played a significant role.
What is the projected CAGR for India's real estate market over the next five years?
The projected Compound Annual Growth Rate (CAGR) for India's real estate market over the next five years is 9.2%.
How has the Dwarka Expressway transformed the real estate market in the region?
The Dwarka Expressway has significantly improved connectivity between Gurugram and Delhi. The infrastructure improvements, along with the proximity to the airport and economic hubs like DMIC, have made the area a hotbed for luxury real estate, driving property prices to double from 2021 to 2024.
What are RISE Infraventures' recent expansion efforts?
RISE Infraventures has opened five new offices, including two in Mumbai, and increased its workforce by 55%. It has also introduced new verticals like RISE International and RISE Homes to better serve NRI clients and the luxury housing segment.
Why is 2025 considered a defining year for the real estate market?
2025 is considered a defining year for the real estate market due to the projected CAGR of 9.2% over the next five years. The sector is poised for sustained growth, driven by technology, sustainability, and evolving consumer preferences, making it the perfect time for investors to enter the market.
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