India real estate to touch dollar 1 trillion by 2030 |
With positive signs of recovery post COVID-19 pandemic, housing demand is on the rise again in India, and India`s real estate market is expected to touch $1 trillion by 2030. Durga Shanker Mishra, Secretary in the Housing and Urban Affairs Ministry, told a conference on July 21 that the size of the real estate sector was around $200 billion two-three years ago, but expected to touch $1 trillion by 2030. Mishra said that rising demand for housing and reforms of the past seven years such as the Real Estate (Regulation and Development) Act, the Model Tenancy Act and steps taken to facilitate doing business in India are expected to drive the market. He predicts that around 70 million people will be employed in this industry. The number of people employed in the real estate sector was 55 million in 2019. Mishra also said states have been asked to quickly implement the Model Tenancy Act, which was passed by the Union Cabinet in June. On concerns raised over the fate of traditional `Pagdi agreements` in Mumbai, Mishra said the new law will not be retrospective and existing rent agreements will not come under its ambit. Once states adopt the new law, it would open up the market. Houses can also be utilised as hostels. The dead investment will start reaping returns. Demand is also expected to rise with growth in the urban areas. About 880 million people are expected to live in towns and cities by 2051 compared with about 460 million currently, creating huge potential for real estate development. On the ease of doing business, Mishra said India has made significant improvement on the parameter of construction permits and has risen in the rankings to 27 from 186 earlier. The government has allowed permission for construction to be given online, to eliminate delays and corrupt practices.
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