Wed. Sep 20th, 2023
    The Role of the Real Estate Industry in India’s Economic Growth

    The real estate industry in India is playing a crucial role in the country’s economic growth and employment generation. As the second-highest employment generator after agriculture, this dynamic sector contributes about 11% to India’s Gross Value Added (GVA) growth since 2011-12. Furthermore, it is expected to reach a market size of $1 trillion by 2030, accounting for 18-20% of India’s GDP.

    The real estate sector in India provides employment opportunities for millions of people. With its extensive value chain, it requires a diverse range of skills and expertise, including construction, architecture, engineering, project management, sales, marketing, and property management. Currently, nearly 70 million Indians are employed in the real estate sector, and this number is expected to grow further due to industrialization and digital advancements.

    Government initiatives like the ‘PM Awas Yojana,’ ‘Smart City Project,’ and the formalization of the Real Estate Regulatory Authority (RERA) have played a significant role in driving employment growth in the industry. These initiatives have created job prospects for real estate agents, consultancy firms, business development, sales, and marketing professionals, among others.

    The real estate industry also contributes to infrastructure development in India. Real estate developers play a vital role in constructing critical infrastructure such as public transportation networks, power plants, data centers, and urban development projects. They collaborate with public entities and urban planners to develop sustainable solutions that address the evolving needs of the growing population. Moreover, the industry provides residential and commercial spaces, from affordable housing projects to high-rise office towers, integrating IoT-enabled devices and real-time monitoring systems to meet the demands of urban dwellers.

    Additionally, the real estate industry supports various other sectors and creates a ripple effect of economic activity. More than 270 allied industries rely on the real estate industry for their growth and prosperity. Supplier industries such as steel, cement, timber, and construction materials thrive due to the demand generated by real estate development. Ancillary services like design, contracting, facility management, leasing, and property consultancy also flourish, further fostering economic growth and unlocking new opportunities.

    Looking ahead, the Indian real estate industry has immense promise and potential. To fully capitalize on its potential, the sector must embrace technological advancements, sustainable practices, and adapt to changing market dynamics. By leveraging innovation and addressing the evolving needs of consumers, the real estate industry can navigate future challenges and seize the vast opportunities that lie ahead.

    Source: The Hindu Property Plus