Real estate in India to contribute 6.3% GDP, create millions of jobs
The real estate in India is estimated to contribute to 6.3 percent of India’s gross domestic product (GDP) in 2013, states a report. At the same time, the sector is expected to generate 7.6 million jobs as well, adds the report.
As per the report by global property consultant, CBRE, the real estate sector along with the construction industry of India is an integral part of the economy and it also plays a pivotal role in the development of the nation’s infrastructure base and is among the largest generators of economic activity.
A supply pipeline of about 3.6 billion square feet has been estimated to be completed in the ongoing year, out of which nearly 98 percent will be in the residential segment. In the last one decade, the sector has seen enormous growth and it holds tremendous potential for growth and development in the future as well. By 2025, the sector would create more than 17 million job opportunities, through which it would make a significant contribution to the nation’s GDP. Besides providing employments, the sector will also boost up its allied industries including cement, steel, aluminium, etc. Through taxes and duties, the realty sector also contributes highly to the revenue of the states and centre.
It is high time that the sector has to be given the industry status and also set up a regulator which will safeguard everyone’s interest. Not only that the sector yields growth but also since the sector contributes to the nation’s economy, it demands recognition. A lump sum investment of around Rs 254,000 crore is required for the total footprint of the realty pipeline, says the report. By observing the growth happening and development rate, it is clear that the sector would generate revenues worth Rs 370,000 crore and provide employment to about 7.6 million people across the country in this calendar year.
The realty sector’s contribution to country’s GDP is being noticed, opine some market experts. Now as the sector has come a long way, many perceptions have radically changed and companies too have become more organized and advanced. However, some of the challenges faced by the sector including prolonged approval processes, high borrowing costs, slow infrastructure development, etc., have to be addressed so that the sector can work more efficiently and systematically. The national policy makers should consider these challenges and bestow their support to the industry which will help to meet the projected goal.
Such achievements will boost the sector’s growth and change the general perception towards it. Observing the opportunities in the sector, many corporate companies have also entered this stream.
The real estate and construction sectors together remain the second largest GDP contributor of the nation. The existing built sector, including real estate, construction and infrastructure, currently has provided employment to around 50 million people. India’s urban population is estimated to reach 600 million by 2030 and to meet the housing and infrastructure demand of this huge population, India will have to develop a new city every year for the next 18-20 years, for which it would need around 4 million crore skilled professionals over the next one decade. In this way, the projected housing demand is likely to generate opportunities for many aspiring professionals.
