The figure of 50% share of wealth is getting contributed from the real estate sector, which may surprise many, but the reality speaks to the dominance of real estate in India. Whether the property is owned or bought by middle-class families or by affluent individuals for investment, the real estate sector is absorbing massive capital. 

Want to know how? Then, let’s do a fair real estate sector analysis, which can showcase that half of the Indian household assets belong to property and land. 

Moreover, it can be conveyed that real estate is not just about buildings or land in India, but also it is about security, emotions, and wealth. Every Indian family looks forward to settling either in urban connectivity or near the spiritual banks of the Ganges. To meet the requirements of the buyers, here come the reputed real estate developers like The Royal Ganges, focusing on heritage-driven riverfront living. 

Allure of Hard Assets 

It has been noticed that Indian households hold 77% of their total assets in real estate, as compared to 11% in gold and 7% in other durables. The existence of a low financial literacy rate also paves the way for more savings on property through informal deals. Apart from this, high stamp duties lead to promoting off-the-book cash deals, which makes real estate a favourable option for unaccounted wealth. 

All these aspects helped to figure out that people are more into investing in hard assets like land or property, due to which automatically contributed to the Indian real estate industry. 

Inequality and Wealth Concentration 

Some trends are amplifying wealth inequality and focusing on the concentration of property ownership. 

• As per the real estate industry report, the top 1% control 40.1% of India’s wealth, which substantially resides in the luxurious real estate property. 
• Metropolitan cities like Delhi, Mumbai and Kolkata are in high demand for residential deals, which have gained 1% of ultra-luxury properties worth record amounts. 

Economic Share and Sector Growth 

Market Size 

According to financial reports of 2024, India’s real estate market growth has reached USD 482 billion and is expected to reach USD 1.184 trillion by 2033. From this, it can be understood that the real estate sector contributes about 7.3% of GDP and is expected to increase its share to 15.5% by 2047. 

Housing Sales Data 

Now, coming to sales data of housing units, major cities have gained a rise of 6.5% YoY (year-over-year). For example, among urban cities, Mumbai alone has come up with 96,187 housing units, which has led to growth by 11% YoY. 

Factors of Wealth in Real Estate 

• Due to rapid urbanisation, it is to be expected that by 2026, there will be a rise of 600 million urban residents, which will be preferred by a minimum 40% of the Indian population. 
• As per Indian real estate industry analysis, the housing market has gained a 26% hike since 2020, and luxury-driven properties are in demand, which is evident from the projects offered by trusted developers like The Royal Ganges. 

Perspective from The Royal Ganges 

The Royal Ganges is a reliable and leading group that illustrates prime real estate projects in Kolkata that focus on enhancing the living experience of the buyers. The housing properties by The Royal Ganges are well connected, offering open space for a luxurious lifestyle, majestic podium, jetty and fast ferry services and a lot more. 

The major contribution by the real estate sector in India has helped to maintain a wealthy landscape, which is not built accidentally but is rooted in the shape of cultural preferences, economic symbolism, and growth dynamics. With increasing incomes, financial reforms and rapid urbanisation, property has remained a favourable asset for preservation and wealth creation. 

However, there are always opportunities that come along with certain risks like ongoing inequality, inventory overhang and others. For those who are looking for investment and also aspire to belong to a culturally inspired real estate? In this scenario, The Royal Ganges appears to be promising with luxury and legacy by the riverside. 

FAQs

1. Why is wealth in India mostly tied to real estate? 

This is so because of emotional attachment, cultural belief, and security, followed by tax advantages and physical usability. 

2. How is The Royal Ganges different in the Indian Real Estate Industry? 

The Royal Ganges presents riverfront luxury living, which is heritage-inspired, combined with a spirituality and impactful investment proposition. 

3. How much wealth is contributed to the Indian real estate industry? 

Approximately 77% of household wealth is contributed to the real estate industry in India. 

4. Which one is better for long-term investment, gold or real estate property? 

Real estate is steadier and offers rental income, and can benefit from it when used properly, unlike gold. 

5. How is the future of the real estate industry going to take place in India? 

It is expected to contribute even more than the present scenario to India’s GDP.