Employment in India’s real estate sector saw a significant increase, rising to 7.1 crore in the past year from 4 crore in 2013. This growth was fueled by a strong expansion in the housing segment, bolstered by various policy changes implemented by the Modi government.
Anarock, a real estate consultancy, and NAREDCO, a group of real estate professionals, recently published a report titled ‘Real Estate Unboxed: The Modi Effect’. The report highlights how the Indian residential real estate market has significantly improved due to various reforms introduced by the Modi government. These changes have not only strengthened the industry but also enabled it to reach new heights.
The real estate sector accounts for more than 18 per cent 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 sale of 28.27 lakh units between 2014 and 2023.
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.
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.
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
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.