India to become real estate capital of Asia says Hurun Report

Mumbai: With real estate companies worth $36 billion in 2024, India is accelerating to become the real estate capital of Asia, pushing away China in terms of growth rate according to the 2024 GROHE-Hurun India Real Estate 100 report. At a time when China’s real estate market is facing significant headwinds due to government clampdowns and demand slowdown, India’s market benefits from a young population increasing urbanization 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. In contrast, China's market struggles with excess supply, high debt levels among property developers, and strict government regulations making India's real estate sector a more attractive and stable investment destination said the report.

“With the middle class projected to reach 547 million by 2030, residential sales are expected to grow 10-12 per cent in FY 2024-25. Rising foreign investments of around US$ 4 billion yearly are further catalysing growth,” said Anas Rahman Junaid, Founder and Chief Researcher, Hurun India.

The number of billion-dollar listed companies in Mainland China plummeted from 100 to just 30. Similarly, in the Hurun China 500, which requires a minimum valuation of $3 billion, the count has sharply fallen from 50 to merely 10. In the list of the top 100, 66 companies focus on the residential sector, followed by 19 in the office sector and 10 in the hospitality sector.

According to the report, India's most valuable real estate firms have a cumulative value of Rs 14.2 lakh crore which is more than the combined GDP of Oman and Sri Lanka. Together these companies employ around 500,000 people, equivalent to the population of Maldives. As many as 86 per cent of the companies in this year’s list saw their values increase, collectively adding Rs 6.2 lakh crore, showcasing the growth and recovery of the real estate sector.

DLF has emerged as the top real estate company with a valuation of more than Rs 2 lakh crore. Macrotech Developers held the second position with a valuation of Rs 1.4 lakh crore, and Indian Hotels Company ranked third with Rs 79,150 crore, the seventh edition of Grohe-Hurun India Real Estate 100 List showed.

The report also features some of the most valuable unlisted companies. Adani Realty is the most valuable unlisted company, followed by K Raheja Group and Hyderabad’s Aparna Construction’s Estates.

Around 41 per cent of the listed companies hailed from the Western Region. The Northern Region contributes 29 per cent of the total companies, while the Southern Region comprises 28 per cent.