Employment in the Indian real estate surged to 7.1 crore in the last calendar year from 4 crore in 2013, driven by healthy growth in the housing segment supported by several policy reforms by the Modi government, according to a joint report by Anarock and NAREDCO.
Real estate consultant Anarock and realtors' body NAREDCO on Monday released a report 'Real Estate Unboxed: The Modi Effect', which stated that Indian residential real estate market has greatly benefited from several reforms by the Modi-led government, helping the industry to not only to emerge stronger but also to scale new heights.
India's top seven primary residential markets witnessed a combined housing supply of 29.32 lakh units and sale 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, MM (Mumbai Metrpolitan Region), Kolkata, Chennai, Bengaluru, Hyderabad and Pune.
"Over the last decade, average housing prices have appreciated in the range of 25-60 per cent across these seven cities," Puri said.
Anarock and Naredco's joint report highlighted that the Indian real estate sector was estimated to be worth USD 120 billion in 2017.
The market size reached USD 477 billion in 2022 and is projected to grow to USD 650 billion in 2025 and USD 1 trillion by 2030.
"India's real estate sector has traditionally been a significant contributor to the country's GDP, accounting for 6-8 per cent of the total GDP during 2014-2017. Going forward, it is expected to double to 13 per cent 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, 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 per cent 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 Indian residential market has reflected an indomitable spirit that has weathered storms and embraced opportunities.
"It has experienced a successful journey in the last 10 years, marked by strong demand, supportive government policies, and increased investor confidence. These factors are favourable 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 till 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 due to capital shortfalls.
The report said 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, demonetisation, and the growing adoption of technology in the real estate sector over the last decade.
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