Effect of Real Estate in development of India

Indian economy is experiencing robust growth since last few years and it is expected to touch new heights in the upcoming years. With the growth in the economy the same growth is expected in real estate industry as well. In India with the liberalisation of the economy, the real estate sector became prominent. There was an increase noticed in business opportunities, labour migration and consumer need; hence there is a growth observed in commercial and housing space. That is why there is growth observed in real estate industry.

Currently, the real estate and construction sector is playing a major role in India’s core infrastructure development. It is providing employment to many people. Everyday there are new units coming in and thus many people are getting employed day by day. After agriculture, real estate industry is turning out to be second largest employer. With all these factors in consideration, the real estate sector is expecting a growth of 30 per cent.

According to a study done by ICRA, the construction industry hold third position amongst the 14 major sectors in terms of direct, indirect and induced effects in all sectors of the economy. With the growth in retail industry, there are several other sectors as well which are expecting the similar effect like hospitality (hotels, resorts, cinema, and theatres) sector, schools and information technology, etc and IT enabled services.

The real estate sector is majorly divided into four sub-sectors:

-       Housing

-       Retail

-       Hospitality

-       Commercial

In the entire housing sector contributes five-six per cent to the country’s gross domestic product.