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Real Estate Sector jobs are set to increase by more than 80% by 2025 according to the CREDAI – CBRE report titled “Assessing the Economic Impact of India’s Real Estate”. CREDAI had commissioned the study in partnership with CBRE to assess the impact of deep economic reforms like RERA and GST on long term real estate scenario. As per the report, the potential employment opportunities in the Real Estate Sector are expected at 17.2 Million jobs by 2025 up from 9.2 million in 2016.The economic contribution of the real estate sector is projected to increase significantly during the period from 6.3% in 2016* (IBEF figures) to almost 13% in 2025. Long term prospects appear highly positive for the sector, with a potential increase in completed space from 3.6 billion sqft in 2013 to about 8.2 billion sqft in 2025.
Increasing urbanization demand for new housing and the expanding urban fabric of tier II and tier III cities in the country are the prime drivers for real estate growth. In order to understand the positioning of the sector in the coming decade and the likely impact that it will have on the economy and employment, the report arrived at certain broad-based projections for growth and spread of the sector till the year 2025.
However, this projected expansion in the economic footprint of the sector is subject to an effective utilization of the potential opportunities for growth and implementation of relevant policy measures to resolve bottlenecks bothering the sector.
Mr. Jaxay Shah, President, CREDAI Nation said, “The NayaDaur in the Indian real estate sector is bound to reach even greater heights in the next decade. With positive demographics and a regulated environment, the real estate sector is projected to spearhead the Indian economy by doubling its GDP contribution by 2025. Not only will this result in an increase in job opportunities, but it will also have a cascading effect on about 250 ancillary industries which are dependent on the real estate industry. With favorable government policies also on board, all these factors point towards an extremely promising future for Indian realty.”
Commenting on the report, Mr. Anshuman Magazine, Chairman, CBRE India and South-East Asia said, “The sector continues its metamorphosis from being largely fragmented and unorganized to become as structured and organized as its peers in developed economies across the globe. The growing prominence of India in the global scenario has had a positive impact leading to increased expectations and responsibilities on this sector.”
“India has emerged as the ‘most preferred outsourcing destination’ as per the findings of the 2017 Asia Pacific Occupier Survey Report of CBRE owing to India’s formidable IT business process outsourcing (IT-BPO). Among Asia Pacific-based companies, 82% of Indian respondents plan to increase their headcount in the next three years, reflecting the country’s buoyant economy, steady progress in enacting regulatory reforms and booming outsourcing and ITeS sector”, he added.
Commenting on the findings Mr. Abhinav Joshi – Head, CBRE Research India said, “Increasing urbanization, expanding spread of organized real estate and introduction of new construction technologies are some of the factors that are likely to be a pivot for the growth of real estate construction activity in the country. The annual real estate supply in India is expected to increase from about 3.6 billion sq. ft. in 2013 to about 8.2 billion sq. ft. in 2025.
Additionally, recent developments would also spur real estate growth: Under RERA, a regulator will bring in credibility for the sector in the long run, likely to open up funding avenues and bring down lending costs. The implementation of GST would result in consolidation in warehousing, leading to emergence of larger, better quality warehouses and boost inflow of institutional capital. Moreover, with REIT listings to become a reality in the coming quarters, developers will be able to gain access to funds by monetizing their assets, giving equity investors a better exit mechanism.”