Market Trends of India Ceramic Tiles Industry
Growing Urbanization is Driving the Market
India has witnessed rapid urbanization, with the urban population accounting for a significant share of the population in the current year. The surge in urbanization in India is primarily attributed to city expansions and significant migration. The country has channeled investments into various urban sectors, including housing, road networks, urban transport, water supply, power infrastructure, smart cities, and urban management initiatives. This urbanization wave has notably spurred demand in residential and commercial construction markets, propelling growth in the Indian ceramic tiles sector. India's urban population is not only witnessing absolute growth, buoyed by a burgeoning middle class and a stable democracy, but also witnessing a consistent influx of migrants, potentially leading to the emergence of new cities.
Rising Investments in Real Estate in India is Driving the Market
Despite the economic crash, real estate investments have maintained their reputation for profitability, consistently yielding positive returns. This investment surge has correspondingly fueled a heightened demand for housing in India, which accounts for 70% of the country's total tile demand. Real Estate Investment Trusts (REITs) have broadened investment opportunities in the real estate sector, luring in both institutional and retail investors. REITs offer an enticing proposition: the chance to invest in real estate sans property ownership, making them particularly appealing to diversification-minded investors. Moreover, the burgeoning disposable income of India's middle class has enticed developers and investors to tap into this expanding market.
