According to DS Mishra, secretary of the Ministry of Housing and Urban Affairs (MoHUA), India's real estate sector, which is worth $200 billion, is gradually recovering from the interruptions created by the Covid-19 epidemic and is on track to become a $1 trillion business by 2030.
“The industry is currently valued at approximately $200 billion, with forecasts of a $1 trillion market by 2030. Indeed, the sector employed 5.5 crore people in 2019 and is anticipated to employ 7 crore people in the coming years,” he said at an event hosted by the industry group CII.
Despite the epidemic, the real estate development narrative remains intact, according to Mishra, who said that by 2051, an estimated 88 crore people would be living in urban areas, up from 46 crores now, creating a significant demand for housing, roads, power, and other infrastructural services.
He emphasised the importance of real estate in India's economy, stating that it generates demand for around 270 sectors, including cement and steel. The Model Tenancy Act, which was recently presented, would make rent regulations more equal and assist the release of a significant number of housing units that might be rented. Mishra stressed that the law is prospective and will have no effect on current leasing agreements.
Despite obstacles, K Raheja Group president Neel Raheja stated that the industry is on the rise, with new prospects coming from sub-sectors such as warehousing, data centres, and logistics. He believes the business will grow to $500 billion in the next three to four years.
To get support for the sector, Raheja brought up the problem of the RBI's high-risk weighting for the real estate industry, which makes it difficult to obtain inexpensive financing. There are constraints on InvITs and REITs financing, land financing, foreign portfolios, and ECBs that need to be investigated for the real estate industry to access low-cost housing finance.