The Indian real estate sector is experiencing a golden age. A recent joint report by Anarock and NAREDCO reveals a remarkable industry employment surge.
The report, titled “Real Estate Unboxed: The Modi Effect,” highlights the creation of over three crore (30 million) new jobs in the past decade (2013-2023). Various government reforms implemented under Modi’s administration pushed this significant growth in the housing market.
Between 2014 and 2023, these markets witnessed a combined supply of nearly 29.3 lakh units, with sales exceeding 28.2 lakh units. This strong growth is reflected in Delhi, Mumbai, Kolkata, Chennai, Bangalore, Hyderabad, and Pune.
Debunking Implementations
Firstly, a wave of policy reforms has brought much-needed transparency and accountability to the sector. The Real Estate Regulation and Development Act (RERA) has been instrumental in safeguarding homebuyers’ interests. Furthermore, government housing schemes like Pradhan Mantri Awas Yojana (PMAY) have boosted affordability, particularly for low and middle-income segments.
Next, the Goods and Services Tax (GST) has streamlined taxation procedures.
The government-backed SWAMIH Fund (Special Window for Affordable and Mid-Income Housing) has also significantly revitalised the sector. This initiative has addressed a major challenge by reviving stalled projects, thereby improving liquidity and boosting investor confidence.
The positive impact of these reforms is boosting the strong performance of the top seven Indian residential markets.
Looking Ahead
The report paints a bright picture for Indian real estate. The sector’s contribution to the GDP is expected to reach 13% by 2025, a significant jump from the 6-8% range observed in 2014-2017.
As per the market experts, an optimistic outlook, strong demand, and supportive government policies will continue to improve transparency and affordability in the market.
