The real estate sector, one of the most sought after sectors in the whole world is a major benefactor to the Indian economy with the contribution of 5 to 6 percent of the Gross Domestic Product (GDP). This sector has seen massive progress across the years because of infrastructural development in the form of residential, retail, office, and factory spaces. The advancement in the real estate sector is well-supported by the growth in the corporate environment and the flourishing demand of residential and commercial spaces in urban areas and its surroundings.
Following are some of the ways in which real estate contributes and how it plays a role in keeping the overall growth on track-
Real Estate- A major contributor to the Indian Economy
One of the most rapidly progressing countries in the world, India is a mixed growing economy ranked 5th in terms of nominal GDP across the world. Considered as the third biggest in regards with purchasing power parity, it is progressing at an imposing rate irrespective of various highs and lows due to the implantation of demonetisation, Goods and Service tax (GST), and others. Fitch Ratings, a global statistical rating agency along with the central statistics office (CSO) has anticipated India’s progress at 7.2 percent for the current year leaving many tough competitors behind.
Niranjan Hiranandani, the national president of NAREDCO, commenting on the real estate’s contribution said that the real estate field has observed astounding progressions in recent years and it needs to continue year over year in order to sustain the growth of the Indian Economy at 7.2 percent. If the real estate sector achieves 22% growth per year over the next three years, India would be able to complete its half of the mission of “Housing for all”, he added.
The real estate sector is being anticipated to be a 180 billion dollar industry by 2020. The advancement in retail, commercial, and hospitality sectors has also been the key in giving the much-needed boost to the infrastructure of the country. Besides being a benefactor to the Indian Economy, the growth in this sector is momentous and currently employs over 52 million people.
Market Size and contribution to Indian GDP-
The contribution of the real estate sector to India’s GDP is necessary for the growth of the country’s infrastructure. The unprecedented progressions in this sector over the years has played a very key role in propelling the Indian economy. The industry is escalating higher and higher following the massive demand for residential and commercial properties which is highlighting the advancement of Indian economy.
The real estate sector is all set to become a 650 billion dollar by 2040 and will account for 14 % of India’s GDP, according to the Niti Ayog. India in order to become the third biggest economy after the USA and China, needs its real estate to grow fivefold which will depend largely on the continuous support of the government through remunerative key policies.
The ongoing progressions in the Indian Economy have resulted in massive demand for residential and commercial real estate in various industries. The real estate industry is connected with over 200 supporting industries including cement, steel, brick, sand, and others which indicates that the growth in this sector influences many other sectors too. Besides that, the progressions in the sector ensure more job prospects which are anticipated to be an additional 15 million by 2022.
The government is supporting immensely in order to boost the industry through implementing various policies like RERA and GST which has transformed the sector in being more transparent and responsible. Following the immense demand for top-notch office spaces in Delhi, NCR, Mumbai, Bangalore, and Hyderabad, the commercial sector has also witnessed growth at the rate of 15 % in the last year. Besides that, large entities looking to expand their bases are also playing a key role in keeping this sector upbeat. Although the insufficiency of adequate office spaces is becoming an obstacle, India needs to construct a decent stock of prime office spaces in order to increase the business potential in this sector.
The real estate industry being the second largest employer and a significant benefactor to the country’s GDP plays an instrumental role in flourishing the Indian economy. The constant support from the government will ensure the escalation of the real estate sector along with various other sectors like raw material industries and the businesses which provide construction equipment. If this industry continues to propel as anticipated in the coming years, there is nothing which will stop the Indian economy to achieve greater heights.
Disclaimer : The perspectives communicated above are for instructive purposes which are simply dependent on industry outlines and related documents. Per Square Feet does not ensure the exactness, perfection, or the absolute quality of the data and will not be considered in charge of any reaction dependent on the published data.