 "Real Estate")
Over the past decade, the Indian real estate market has witnessed growth in terms of sales and sustainability due to several structural reforms under the Narendra Modi-led government, real estate consultancy Anarock said in a joint report with the National Real Estate Development Council (Naredco) on Monday.
Jobs in the sector jumped by 31 million to touch 71 million in calendar year 2023, according to the report.
The measures taken, it says, can catapult the size of the Indian real estate market from $20 billion in 2017 to an estimated $1 trillion by 2030.
The report, titled Real Estate Unboxed: The Modi Effect, highlights that around 2.82 million units were sold in the top seven cities between 2014 and 2023, while cumulative new launches stood at over 2.93 million units. Included in the report are Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, Pune, and the Delhi-National Capital Region.
“In 2023, India saw completion of nearly 435,000 units in the top seven cities, while in 2024 it is estimated that more than 531,000 units are expected to be completed,” the report said.
It lists the Real Estate (Regulation and Development) Act, 2016 (Rera), and the introduction of initiatives such as Pradhan Mantri Awas Yojana (PMAY), the Special Window for Affordable and Mid-Income Housing (SWAMIH) fund, and the goods and services tax (GST) as markers of change in the real estate industry.
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“Implemented across many states since 2017, Rera has brought regulation to the real estate sector, safeguarding the interests of homebuyers by ensuring transparency, timely project completion, and accountability among developers,” the report stated.
According to the latest government data, approximately 123,000 real estate projects have been registered across states since Rera’s inception to date, and more than 121,000 consumer grievances have been addressed across the country. The report adds that nearly 26,000 homes have been completed under the SWAMIH fund, which aims to provide financial support to stalled affordable and mid-income housing projects that were struggling due to capital shortfall. Another 80,000 units are slated to be completed in the next three years. The report also highlighted the positive impact of various other government-backed initiatives such as PMAY (Urban and Gramin), GST, demonetisation, and the growing adoption of technology in the real estate sector over the past decade.
“A combined 33.75 million houses have been completed under the PMAY (Urban and Gramin) scheme since their inception in 2015 and 2016, respectively,” the report said.
It also mentions the 2016 demonetisation, which, it says, was instrumental in bringing transparency to the sector.
The report finds that housing inventory overhang has also seen a major drop over the past 10 years, from 41 months in 2017, when available inventory was at its peak, to 15 months at the end of 2023.
Commenting on the findings of the report, Anuj Puri, chairman of Anarock Group, said that the housing demand and new supply in the top seven cities have soared in the past decade, particularly after the pandemic, and housing sales are now aligned with new launches.
The projected growth will lead to real estate having an expected contribution of 13 per cent to the nation’s gross domestic product by 2025, making the sector a pivotal contributor to economic development, employment, and government finances, said Niranjan Hiranandani, chairman of Naredco.
The report says that the real estate industry will proactively restructure its strategies to align with economic conditions in the coming years.
“The sector's growth prospects will be strengthened by factors such as a stable government, consistent interest rates, job creation, and increased private sector investment,” it stated.
