It is estimated that close to 50% of India's GDP is connected to the domestic real estate sector, making it a crucial driver of growth and employment with both forward and backward connections.
While there is a lot of focus on making India a hub for global manufacturing, the domestic real estate sector plays an important role in creating jobs, boosting the economy, and having a knock-on effect on other sectors. In fact, the real estate sector has been adding about 11% to Gross Value Added (GVA) growth since 2011–12, making it the second-largest employer behind agriculture. It is estimated that close to 50% of India's GDP is connected to the domestic real estate sector, making it a crucial driver of growth and employment.
Utilizing a big labor force to create the nation
Many skilled and unskilled workers are employed in construction and related industries, many of whom come from rural areas where agriculture still serves as the only source of employment. According to conservative estimates, the real estate industry in India will employ up to 70 million people by 2022, and by 2030, it is expected to reach a value of $1 Trillion. Additionally, people working in the Indian real estate industry are profiting from the significant advancements made in recent years, including the implementation of the RERA Act, the reform of labor regulations, demands among the NRI's and International clients, and a striking increase in overall compliance.
Generating demands for important suppliers and supporting service industries
This significant industry has an important multiplying effect across the whole supply chain because more than 270 related companies depend on the real estate sector for economic survival. Examples of important additional services include design, contracting, facility management, leasing, and property consultation. Important suppliers include the steel, cement, timber, and construction materials sectors. The real estate sector's increased activity will have a favorable multiplier effect on related industries and individuals working in them.
Accelerating Urbanization
With the help of vital housing and commercial infrastructure, urbanization will be accelerated. Over the past few decades, India's economic growth has been significantly fueled by the country's growing urbanization, with cities like Bengaluru, Mumbai, the National Capital Region, Pune, and Hyderabad drawing large amounts of both human and financial capital. This transition has been significantly aided by the real estate industry, municipal governments, private developers, and infrastructure firms.
The Indian real estate industry will be tasked with maintaining this rate of urbanization and building the necessary infrastructure to accommodate the nation's sizable young workforce since the country is expected to profit from its high demographic dividend until at least 2050. Additionally, local government entities and state governments will continue to rely heavily on premiums, development, and approval charges derived from real estate-related activity as a major source of income, supporting continued socio-economic growth all around the nation.
A Source of Wealth for Millions of Indians
Both residential and commercial real estate are increasingly taking priority over other conventional asset classes like fixed deposits or gold as more Indians invest their money in wealth-building strategies that can also considerably improve their standard of living. The Indian real estate market has historically been a significant asset class and a generator of wealth, with newer products like REITs appealing to younger investors who aren't quite ready to purchase their first house. For millions of Indian consumers, the real estate market continues to be a major savings route, and recent regulatory environment changes have further increased consumer confidence.
Commentaires