Spearheaded by surging demand and proactive reforms, the Indian Real Estate sector is about to reach USD 1 Trillion by 2030, said Housing and Urban Affairs Secretary Durga Shanker Mishra. The number of employment in the sector is expected to rise to 7 Crore from 5.5 Crore in 2019. Centre has asked the states to roll out the Model Tenancy Act recently passed by the Union Cabinet. Mishra clarified that the law once implemented by all the states will be prospective in nature and all disputes related to rent agreements will be dealt under the old laws of respective states.
The Secretary said that the housing demand has increased and the market sentiments are aligned positively for the comeback of the sector. The industry which suffered during the first and second wave has now bounced back. “It is not mere talk and guess work. The trend clearly shows that the real estate sector of our country will touch the figure of USD 1 trillion in the next 7-8 years,” Mishra said, while emphasising the importance of this industry in the Indian economy.
Commenting on the importance of the real estate sector in employment generation, Mishra said: “Around 5.5 crore people were employed in the sector as per 2019 figure. Our predictions for the future is that around 7 crore people will be employed in this industry.” He also stressed out that the real estate sector will impact a cascading effect on generating demand for about 270 other industries including the cement and steel industry.
He emphasised that the Centre has always given prominent consideration to the sector in every budget ever since 2014. Around 88 Crore people will consume the urban spaces by 2051 against the current 46 Crore, which will unlock a huge potential for real estate development. The secretary was also keen in addressing the success story of RERA regulations and its ongoing positive impact on the real estate sector.
“RERA has transformed this sector and changed the perception of this industry. Consumers now have confidence that their investments are safe,” Mishra said. Around 67,000 projects and 52,000 property agents are registered under this law. More than 70,000 cases have been disposed of by the real estate authorities established under this law”, hinted Mishra at the increased level of transparency in the real estate sector boosting buyer investor confidence.
The Model Tenancy Act will surge the demand for rental housing in the country. The provisions of the act clearly mention that all disputes related to existing rent agreements will be dealt under the old laws even after their repeal. Mishra went on to talk about reforms for ease of doing business in the real estate sector. Online permission for construction has been planned to avoid delays and corruption in terms of sanctioning a project.
The introduction of Real Estate Investment Trust (REIT) and the launch of SWAMIH – a stress fund to complete the stalled housing projects will buy a new lease of life for the sector. The Affordable Rental Housing Complex (ARHC) scheme to build homes for migrant workers will create more business opportunities for the sector. In an advice to the builders, Mishra addressed the sector to focus more on affordable projects to lure the buyers from the lower and middle class groups.