Virendra Pandit
New Delhi: Supported by several policy reforms undertaken by the Narendra Modi government since 2014, employment in the real estate sector surged from 4 crore in 2013 to 7.1 crore in 2023, a joint report by real estate consultant Anarock and sectoral body National Real Estate Development Council (NAREDCO) said on Monday.
The Indian real estate sector, estimated to be worth USD 120 billion in 2017, reached USD 477 billion in 2022 and is now projected to grow to USD 650 billion in 2025 and USD 1 trillion by 2030.
The report, “Real Estate Unboxed: The Modi Effect”, stated that the Indian residential real estate market has greatly benefited from several reforms by the Modi-led government, helping the industry not only to emerge stronger but also to scale new heights.
The real estate sector accounts for more than 18 percent of the total workforce in the country.
India’s top seven primary residential markets witnessed a combined housing supply of 29.32 lakh units and sales of 28.27 lakh units between 2014 and 2023.
Unsold inventories have dropped because of higher sales velocity, while many stalled projects have been revived with the help of the government-backed stress fund SWAMIH (Special Window for Affordable and Mid-Income Housing).
“With profound initiatives such as the Real Estate Regulation and Development Act (RERA), Goods and Services Tax (GST), and various housing schemes like Pradhan Mantri Awas Yojana (PMAY), the government has aimed to reshape the landscape of the real estate sector in India in the past 10 years,” NAREDCO National President G Hari Babu said in the report.
Anarock Chairman Anuj Puri said housing prices have registered significant demand-led growth across the top seven markets — Delhi-NCR, MMR (Mumbai Metropolitan Region), Kolkata, Chennai, Bengaluru, Hyderabad and Pune.
“Over the last decade, average housing prices have appreciated in the range of 25-60 percent across these seven cities,” Puri said.
“India’s real estate sector has traditionally been a significant contributor to the country’s GDP, accounting for 6-8 percent of the total GDP during 2014-2017. Going forward, it is expected to double to 13 percent by 2025,” the report said.
On the employment front, the report mentioned that 71 million people were employed in the real estate sector in 2023 as against 40 million in 2013.
“After agriculture, the real estate sector is an important provider of employment in India. As the sector continues to grow, we expect employment to grow multifold in the coming years.
“Over 18 percent of India’s workforce is employed in the real estate industry, which is a vital component of the country’s economy and is connected with over 250 ancillary businesses,” the report said.
Puri said the Indian residential market has reflected an indomitable spirit that has weathered storms and embraced opportunities.
“It experienced a successful journey in the last 10 years, marked by strong demand, supportive government policies, and increased investor confidence. These factors are favorable for future growth prospects in this dynamic sector,” he added.
The report tracked a decade of significant change in the Indian real estate sector, led by various game-changing reforms and policies like RERA and the SWAMIH alternate investment fund, which reignited confidence and hope in the sector.
Implemented across many states since 2017, RERA finally brought regulation to the real estate sector, safeguarding the interests of homebuyers by ensuring transparency, timely project completion, and accountability among developers.
According to the latest government data, approximately 1.23 lakh real estate projects have been registered across states since RERA’s inception to date, and more than 1.21 lakh consumer grievances have been addressed across the country.
Since its inception in 2019 and until December 2023, the SWAMIH Fund has completed about 26,000 homes in the country, and 80,000 more are projected to be completed over the next three years.
The government-backed SWAMIH Fund aims to provide financial support to stalled affordable and mid-income housing projects that were struggling because of capital shortfalls.
The SWAMIH has played a crucial role in addressing the sector’s liquidity issues, especially amid challenging economic conditions.
The fund has also boosted the growth of many ancillary industries in the real estate and infrastructure sectors, having successfully unlocked liquidity of more than Rs 35,000 crore.
The report also highlighted the positive impact of various other government-backed initiatives such as PMAY (Urban & Gramin), GST, demonetization, and the growing adoption of technology in the real estate sector over the last decade.