Although there is strong support for the growth of India as a hub for global manufacturing, the local real estate market’s contribution to job creation and actual economic value addition is frequently disregarded. Since 2011–12, the real sector has contributed 11% GVA to the growth rate, making it the second-largest industry in terms of employment creation in the nation after the agriculture sector. According to estimates, the real sector contributes about 50% of India’s GDP.
Workforce employment
In construction and related industries, both skilled and unskilled workers are engaged in significant numbers. Particularly many people from rural areas work in this industry. By 2022, it is anticipated that the real estate business will employ over 7 crore people. This industry is predicted to cross $ one lakh crore-mark by 2030.
Crucial supplier
The real estate industry as a whole has emerged as an important supplier of manpower since it is reliant on more than 270 allied service industries. Key industries like steel, cement, wood, and construction materials are some excellent examples, as are related service sectors like design, contracting, facilities management, leasing, and real estate consulting.
Rapid urbanization
Rapid urbanization over the past several decades has been key to India’s economic growth. Large amounts of human and financial capital are drawn to cities like Bangalore, Mumbai, Delhi, Hyderabad, and Pune. Municipal governments, private developers, and infrastructural firms have been playing a crucial role in the exercise. Moreover, premiums, development fees, and permission fees from real estate-related activities become the primary source of income for state and local governments. It aids in the social and economic advancement of the entire nation.
Facile foreign investment
Strategic and foreign investments are being drawn to the country by legitimate businesses that are essential to its economic development. This is demonstrated by the fact that between 2017 and 2021, capital inflows from overseas companies and private equity firms will total 24 billion dollars. Comparing this to the past five years, there has been a 2000% growth. While domestic and foreign businesses express interest in establishing warehouses, industrial parks, and data centers in India, these are also anticipated to give our nation’s economy the required push. In addition, more and more Indians are expressing interest in making investments in the real estate market. Against this backdrop, each of these elements is assisting in the expansion of the economy of our nation.
