Estimates suggest that real estate will reach a market size of $1 trillion and contribute 18-20 per cent of India’s GDP by 2030

Dr. Niranjan Hiranandani, National Vice Chairman, NAREDCO & MD, Hiranandani Group

Not just the provider of a basic necessity, shelter; real estate is also the second largest creator of jobs across the Indian economy, as also supports ancillary industries – and, plays an important role in growing the country’s GDP. We are developers of the nation, we create the real estate which drives India ahead towards its goals, be it becoming a $ 5 trillion economy; as also ensuring housing for all.

As India emerges from the challenges of reforms (Tsunamis that were economic, taxation and industry related) as also the Covid-19 pandemic, real estate is all set to play a major role in the dual processes of ‘resurgence’ and ‘growth’. The festive season in 2021 has seen housing sales move upwards, buoyed by festive sentiment and also the historic low home mortgage rates.

From a scenario where ‘ready to move’ in homes were the ‘flavour of the season’, we are now seeing under construction homes being booked, even as new projects are being launched. This change in market sentiment has been driven by the vaccination process slowly and surely bringing in the perception of India becoming ‘safe and secure’, to the extent that sales are growing, month on month.

Playing a major role in the growth story of housing have been initiatives and positive measures by the Government of India (GOI), including the Atmanirbhar Bharat Package 3.0 which provides tax relief measures for real estate developers and home buyers. Other measures include setting up of Alternative investment Fund, Affordable Housing Fund and National Housing Bank with an initial corpus of Rs 35,000 crores for micro-financing of housing finance companies.

Securities and Exchange Board of India has approved the Real Estate Investment Trust Platform which will create an opportunity worth Rs 1.25 trillion. What makes these measures aimed at real estate important is its prominence, given the multiplier effect in development of the economy and the ecosystem of the country. Estimates suggest that real estate will reach a market size of $1 trillion and contribute 18-20 per cent of India’s GDP by 2030.

It is not just housing; as a result of ‘Make in India’ and ‘Digital India’, we see growth in warehousing, logistics, industrial and data centre segments. Newer sunshine segments are rising, even as India adopts sustainable real estate development as its contribution towards positive action climate change. The sector will ensure we leave a greener world for our future generations, for a sustainable future.
The recent past has been challenging for India, the economy, and real estate has not been left untouched – but, the watch-word even as we are on the cusp of growth, is that the future looks bright.