Real estate sector likely to grow nearly 18% by 2030: PHDCCI report

The real estate sector in India is likely to grow from 6-7 per cent currently to around 18 per cent by 2030, according to PHD Chamber of Commerce and Industry (PHDCCI) report released Thursday.
 

The PHD Chamber of Commerce and Industry (PHDCCI), in collaboration with Grant Thornton Bharat, hosted the Real Estate Summit 2023 on Thursday in New Delhi. The event brought together the entire real estate ecosystem, comprising policymakers, industry leaders, capital providers, and financial/ tax experts. 
 

The report titled ‘Realising the potential of real estate’, which was done jointly by PHDCCI and Grant Thornton Bharat and was released during the Real Estate Summit 2023 in New Delhi, explores the potential of the real estate sector in the country. The report considers the various aspects of evolving regulatory framework, trends, challenges around financing, and how tech could transform businesses.
 

While addressing the event, Vishesh C Chandiok, CEO, Grant Thornton Bharat, said, “As India grows towards a $7 trillion economy by 2030, the wider real estate ecosystem will become a major part of our GDP from 6-7 per cent currently to around 18 per cent by 2030. This growth can be propelled even faster through a focus on strong governance, simple single window-type regulations, and by leveraging technology as a differentiator, thereby making the sector more attractive to capital.”
 

The report also talks about the relationship between ESG and carbon footprint. Listed developers are targeting a 25 per cent increase in their green portfolio by 2025-2030, as a part of their short-term ESG goals.
 

With Indian cities projected to add 416 million urban dwellers by 2050, urban development is expected to impact carbon emissions significantly. Sustainable cities are the key to achieving the circular economy model for the real estate sector, facilitating the efficient use of resources, and minimising waste, according to the report.
 

“The growth of this sector depends on a culmination of regulatory, corporate, and sustainability initiatives. As a growing economy with a massive population, the focus needs to shift to making use of alternate sources of energy for building a new India. Carbon neutrality is now a reality, and a juxtaposition of affordable and sustainable housing is the only way forward,” said Saket Dalmia, President, PDHCCI, at the event.
 

It emphasised implementing a single-window clearance mechanism for projects to streamline the flow of supply and demand, promote ease of doing business, and further attract investments. Moreover, the real estate sector in India is waiting to be granted industry status. This status would enable state and central government agencies to recognise the real estate sector as a distinct industry, allowing for the implementation of special programs and subsidies.
 

The report also talks about how technology has improved the real estate industry by empowering businesses to stay competitive and provide better experiences for clients. Virtual tours, using AI and VR have revolutionised the way clients experience tours. AI has helped agents and brokers better predict the future rent and value of a property in a specific market. The tokenisation of properties using blockchain technology has also made buying and selling properties more transparent and efficient.