The Real Success Story of Indian Real Estate
The real estate sector is one of the most globally recognised industries, with the Indian market leading as one of the world’s most attractive investment hubs. While the pandemic resulted in an economic slowdown world over, the Indian real estate sector remained relatively resilient.
Further, as per research by the India Brand Equity Foundation, the Indian real estate industry is on a steady growth trajectory, projected to account for $1 trillion by 2030, and is expected to contribute up to 13% of the GDP by 2025. Propelled by macroeconomic factors such as the country’s robust economic growth, infrastructural development, increased influx of foreign investment, etc., the sector is primed to experience exponential growth in the upcoming years.
Driving Employment Rates Across Industries
In light of these factors, it comes as no surprise that the sector is the second biggest employment generator in the country. According to the latest research by a leading real estate consultancy and the National Real Estate Development Council (NAREDCO), employment in the sector has shot up to 7.1 crore from 4 crore in 2015. The report further goes on to state that industry makes up a whopping 18% of the country’s workforce and is connected to 250 ancillary industries.
Policies Driven Real Estate Momentum
The movement back to office, digitization of the sector, and many other policies rolled out by the Narendra Modi-led government are stated to be one of the main reasons behind this unparalleled momentum. Initiatives such as RERA and GST have served to make the sector more transparent and compliant with the legal framework, significantly decreasing the chances of illicit practices. The latest government data reveals that over 1.23 lakh real estate projects have been registered since RERA’s inception, with 1.21 lakh consumer grievances resolved, signaling a highly regulated real estate sector.
The central government backed SWAMIH Fund has also worked to reignite the trust in the realty industry. Aiming to provide financial support to stalled affordable and mid-income housing projects, SWAMIH has successfully delivered 26,000 homes in the country since its launch. A further 80,000 homes are projected to be completed in the upcoming three years, effectively resolving the sector’s liquidity grievances. The fund also acted as a shield during the period of pandemic induced economic crisis for many affected projects, providing assistance of up to Rs 35,000 crore.
As a result of these policies, unsold inventory has dropped to an all-time low, with many heretofore stalled projects being revived with the government’s assistance. This has led to the housing market in the country being stronger than ever, with prices in the top 7 cities of the country appreciating significantly due to rising demands. The aforementioned report accounts for a rise of 25–60% in housing properties’ prices in these cities over the last decade.
Final Thoughts
The Indian real estate sector’s resilience and growth reflect a promising future. With robust policies and initiatives fostering transparency and revitalizing stalled projects, the industry is poised for continued expansion. As employment rates soar and housing demands rise, the sector emerges as a key driver of economic development. Amidst challenges, the sector’s adaptability and government support lay a strong foundation for sustained progress. With innovative strategies and concerted efforts, Indian real estate charts a course towards prosperity, embodying the nation’s potential and resilience in a dynamic global landscape.
