The Indian realty industry will be a $ 1 trillion (72 lakh crore) industry by 2030, becoming the third largest globally, propelled by affordable housing, co-working spaces and a transparent regulatory environment, a KPMG report said.
From $ 120 billion in 2017, the sector will grow to $ 650 billion by 2025. During this period, the sector’s contribution to GDP will go up from about 7 per cent to 13 per cent, said the report.
Private equity investments in Indian real estate have improved 15 per cent year-on-year in January-March 2018, reaching $ 3 billion. “With the current government’s renewed focus on affordable housing, game changing regulatory reforms and infrastructure status to warehousing, business sentiment has been positive,” Neeraj Bansal, Partner and Head, Building, Construction and Real Estate, KPMG India, said.
Overall, strong economic ground rules, proactive reforms and the use of technology will continue to boost the sector. A number of other asset classes—such as co-working spaces, affordable housing, rental housing, and warehousing realty—have mushroomed in the country, and are fast gaining traction.
The report said that the increased interest in affordable housing is expected due to the Central Government’s policy push, use of innovative technology and the increased participation from the private sector. “Easier availability of land in the extended suburban sub-markets, along with improved infrastructure connectivity, is also helping drive the real estate sector,” the report added.
The sector is the third largest employer after agriculture and manufacturing in the country and employs over 50 million people presently. As per the National Skill Development Council, the real estate and construction sector is expected to necessitate demand for over 66 million people by 2022.