The real estate sector is more than just an industry; it is a cornerstone of economic growth and societal development in India. As one of the largest contributors to the nation’s GDP and a significant generator of employment, real estate shapes the physical, financial, and social landscapes of the country.
Real estate is one of the largest sectors in India, contributing approximately 7-8% to the country's GDP. With rapid urbanization and increasing demand for residential and commercial spaces, this percentage is expected to grow further, possibly reaching 13% by 2030.
The sector is the second-largest employer in India after agriculture, providing jobs to millions across construction, development, finance, and supporting industries like steel, cement, and logistics.
Real estate attracts significant Foreign Direct Investment (FDI), which helps in improving infrastructure, creating jobs, and boosting allied industries. In the last two decades, FDI in the real estate sector has grown steadily, aided by reforms like the Real Estate (Regulation and Development) Act (RERA) and relaxed FDI norms.
Real estate is deeply connected to the financial sector. Real estate assets support the banking system through home loans, mortgages, and construction financing, influencing both investment and consumption. Growth in real estate often translates to growth in housing finance.
The government's push towards affordable housing through programs like Pradhan Mantri Awas Yojana (PMAY) has spurred investment in housing development for the lower-income segments, further contributing to economic inclusion and stimulating demand in the sector.
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