The real estate sector is expected to contribute 18-20% of the country’s GDP by 2030, said Amitabh Kant, CEO, NITI Aayog on Friday. He noted that India’s real estate sector is one with cross-linkages and its most important contribution is towards supporting India’s continued dominance in the technology sector. And, thus, to India’s services, GDP cannot be emphasized enough.
According to Kant, the sector and its stakeholders also play a critical role in supporting housing for all initiatives taken by the GoI. As part of nation building, the sector truly holds a place of prominence as real estate plays a multiplier effect in the development of the economy and the ecosystem of the country. The sector is expected to reach a market size of $1 trillion and contribute 18-20% of the country’s GDP by 2030.
“The last 18 months have been challenging for India, and the economy in general, and the real estate sector was not left untouched. However, we see a silver lining as the vaccination rate has picked up and the infections are slowly coming down. Securities and Exchange Board of India has already given its approval for the Real Estate Investment Trust Platform which will create an opportunity worth Rs 1.25 trillion in the coming years. The GOI along with several states has taken initiatives to encourage redevelopment in the sector. The smart city project with a plan to build 100 cities is a prime opportunity for real estate companies,’’ said Kant. He was speaking at the 13th Edition of Confederation of India Industry Realty and Infrastructure Conclave 2021 organised in association with JLL as the Knowledge Partner.
Kant said the Atmanirbhar Bharat Package 3.0 announced by the Finance Minister provides tax relief measures for real estate developers and home buyers. The government has also announced 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, he emphasised.
Kant said housing sales are recovering, buoyant by the decade low mortgage rates. Make in India and India’s growing might as a digital economy has spurred our warehousing and industrial segments. ‘’As we move ahead, technology will be a key game changer. India remains very committed to the Paris Agreement towards positive action climate change. The sector will need to be in sync with the stated goals as look to leaving a greener world for our future generations. The built environment will be vital in moving towards a sustainable future. With big corporates realigning their sustainability roadmaps to speed up their net zero goals, as a global movement towards more sustainable choices is underway”, he further added.
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