The real estate sector plays a multiplier effect in the development of the economy and is expected to reach a market size of USD 1 trillion by 2030, accounting for 18-20 percent of India's GDP, Niti Aayog CEO Amitabh Kant said on Friday. Virtually addressing an event organised by industry body CII, Kant further said 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," he said. Kant noted that the real estate sector and its stakeholders also play a critical role in supporting the 'housing for all' initiative of the government.
"The real estate sector 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 USD 1 trillion and contribute 18-20 percent of the country's GDP by 2030," he said. Kant further said the Securities and Exchange Board of India (Sebi) has already given its approval for Real Estate Investment Trusts (REITs), which will create an opportunity worth Rs 1.25 lakh crore in the coming years.
"The smart city project with a plan to build 100 cities is a prime opportunity for real estate companies," he said, adding that a slew of measures introduced by the government, including monetary and fiscal stimulus, have supported businesses and industries through these challenging times. According to Kant, the sector will need to be in sync with the stated goals in order to leave a greener world for future generations.
"Big corporates are realigning their sustainability roadmaps to speed up their net-zero goals as a global movement towards more sustainable choices is underway," he added. Pointing out that housing sales are recovering, buoyed by the decade-low mortgage rates, Kant said, "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."
First Published: IST