As stated by Niti Aayog Vice-Chairman Rajiv Kumar, Indian real estate market is expected to jump over fivefold to USD 650 billion by 2040 and its share in the country's gross domestic product (GDP) is set to double from the current seven percent.
While addressing a global luxury realty conclave, Mr. Kumar said that the recent Interim Budget demonstrates the government's willingness to take steps to make sure that the real estate sector’s contribution to GDP is more and grows and develops further so that the industry contributes even more to the economy of the country. He said, "The government is committed not only to the real estate sector but all aspects of it. The government is very conscious and cognizant of what is happening in the sector and how it contributes to the economy".
The current size of the real estate market in India is USD 120 billion, and the industry currently employs 55 million people. Along with the market growth as expected will be USD 650 billion by 2040, the number of employees will also see a rise of 66 million. The Centre has offered a lot of tax incentives to developers and continues to do so for building affordable houses and also provides tax sops to homebuyers looking to purchase second homes. While highlighting the importance of this sector, the real estate sector is contributing seven percent to the country's GDP. The share is highly expected to double by the year 2040.
Mr. Rajiv Kumar continued, "The real estate sector would contribute more with rapid urbanization. This sector is the heart of the economy. It has backward linkages with 200 other industries. The two legislations - the goods and services tax and the RERA - implemented by the government would help in the organized growth of this sector. The real estate companies in their future development of properties should blend the best of Indian culture and best of global facility and technologies”.
Speaking on the event, Tata Housing Managing Director and Chief Executive Officer said, "The demand for luxury houses is slow and this has given an opportunity to better our product portfolio in terms of design and other services".
Gaurs Group MD Manoj Gaur said, "The luxury housing is looking up and its demand is growing because of a growing number of high net worth individual in the country".