Recently the National Real Estate Development Council (NAREDCO) and real estate consultancy Anarock released a report highlighting changes in the Indian real estate market over the past decade. The report attributes this growth to several structural reforms initiated under the leadership of Prime Minister Narendra Modi.
Surge in Jobs and Market Size
The Indian Real Estate Sector has experienced a significant increase in jobs with numbers soaring by 31 million to reach 71 million in 2023, according to the report. Furthermore, the measures taken are projected to elevate the market size from USD 20 Billion in 2017 to an estimated USD 1 trillion by 2030.
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The report has also highlighted the sales and completion figures in the top 7 cities including Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, Pune and Delhi-NCR. Between 2014 and 2023, approximately 2.82 million units were sold cumulative new launches surpassing 2.93 million units.
Future Projections
What’s more, the forecast claims that more than 531,000 units will be produced in 2024, which is several times more than the 435,000 units finished in the last year. The RERA Act, 2016 (RERA) has been the driving force behind transparency and accountability for the sector. RERA has ensured that the handover of the project is timely and the rights of home buyers are protected.
Impact of Government Initiatives
Builders in urban and semi-urban areas are benefiting from government-backed schemes like Pradhan Mantri Awas Yojana (PMAY), Affordable and Moderate Income Housing (SWAMIH) Fund and special window for Goods and Services Tax (GST), which provides various provisions. It is noteworthy that till now 26 thousand houses are on the way to be completed under SWAMIH Fund and then 80,000 more houses will be completed in the coming 3 years.
The report clearly states the consequences of demonetisation which have reduced the level of corruption in this sector. Sophisticated technology is used more and more widely, which in turn increases the operational efficiency of the real estate industry.
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Projected Contribution to GDP
According to industry experts, real estate is expected to increase the country’s GDP by about 13% during the stipulated time frame. This reflects the sector’s equality in economic growth, employment generation, as well as government revenue which can only mean the sector’s dominant role in the economy.
