May 22: Industry experts believe that South India’s long-term real estate growth trajectory continues to remain fundamentally strong. The three large states of Karnataka, Tamil Nadu and Telangana contribute almost ~25% of India’s GDP. Tamil Nadu is the second largest contributor to India’s GDP with share of ~9% while Karnataka is close behind with share of 8%. While Karnataka is largely driven by IT/ ITEs, Tamil Nadu has diversified economic base including real estate, IT/ ITEs, Automobiles and manufacturing clusters.
Industry participants also point out that professionally managed real estate investment platforms, AIFs and REITs continue to witness growing investor interest as the sector becomes increasingly organized and transparent. Investors today are evaluating opportunities through a long-term lens, focusing more on structural demand drivers.
According to Sharad Mittal, Founder & CEO, Arnya Real Estate Fund Advisors: “Real estate investments are fundamentally linked to long-term economic indicators such as urbanization, infrastructure growth, employment generation, and end-user demand. Markets backed by strong industrial ecosystems and economic activity continue to remain attractive for long-term real estate capital.”
Tamil Nadu continues to remain one of India’s most important industrial and automobile manufacturing hubs. The state’s diversified economic base, strong urban centers and continued infrastructure investments are expected to support long-term housing and real estate demand irrespective of short-term political cycles. Manufacturing activity, infrastructure expansion, urbanization, and employment generation continue to support both residential and commercial real estate demand across key southern markets.
Commenting on the real estate front Sharad further added: “South India has consistently demonstrated resilience across market cycles. The region continues to benefit from manufacturing-led growth, infrastructure development, and sustained residential demand, which continue to support long-term investor confidence.”
With continued economic activity, infrastructure expansion and urban growth across key southern cities, South India is expected to continue to be an important market for real estate investment and capital deployment in the years ahead.
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