The real estate industry in India is a major contributor to the country’s GDP, as opined by leading industry watchers and experts. The country saw record growth in its GDP for Q1 FY2023-24, the highest volume seen in four quarters. Some industry players feel that the realty sector contributes towards encouraging economic progress while also taking growth figures northwards. They also opine that improved real estate growth will naturally impact 270 allied industries positively while also ensuring higher job-creation at the same time. Investment influx into the sector will lead to better development of infrastructure, taxation-linked incentivization, superior economic performance, and improved policy reforms.
Economic progress has been sizable for the quarter with 7.8% in GDP growth and real estate has contributed towards the same, mostly due to higher commercial and residential demand across India. This has spurred higher job growth while also boosting overall economic activity considerably. Residential sales figures have grown by 22% (year-on-year) which is a record high and it has led to higher demand for real estate services. Simultaneously, the construction segment has not seen anticipated growth although it should improve over the coming quarters with the Government’s consistent infrastructural push.
The Founder and COO, Square Yards, Kanika Gupta Shori, feels that real estate demand has been buoyed by increasing migration from rural to urban areas along with other factors like the availability of affordable housing and enhanced amenities and infrastructural growth in Tier-II and Tier-III cities. While realty demand has increased across multiple categories, while FDI inflows have also increased for investments in real estate asset classes according to her. She states that this is a clear indicator of the higher confidence of investors in Indian real estate.
The future quarters look promising for Indian real estate, especially with higher infrastructural growth and connectivity improvements in addition to smart city development and continued urban migration. At the same time, the festive season should propel further growth in the real estate industry and the sector should maintain its stellar contribution towards economic growth in the near future.
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Published Date: Sep 12, 2023
