Last week, the Ph.D. Chamber of Commerce and Industry (PHDCCI) and Grant Thornton Bharat conducted a joint study shedding light on the prospective growth figures of India's real estate sector. The report titled 'Realising the potential of real estate' suggests that the real estate industry is anticipated to surge to 18% by 2030 from the current rate of 7-8%. The study takes place at a time when the real estate sector is the second-largest employment-generating economic field, with a 5%-6% contribution to the country's GDP. Moreover, the report forecasts that the real estate industry will account for 13% of India's GDP by 2025.
According to the report titled 'Realising the potential of real estate,' the emerging key segments in the real estate sector are coworking spaces, student housing, co-living or shared housing, data centers, senior assisted living, and warehousing.
Prateek Mittal, the executive director of Sushma Group, has observed that the emerging real estate segments in Tier 1 and Tier 2 cities have experienced remarkable growth. High prices and limited space in metropolitan areas have resulted in many homebuyers exploring alternative locations. The work-from-home trend has driven up demand for co-working spaces and holiday homes. Additionally, the government's focus on infrastructure spending has led to better connectivity, boosting the growth of the real estate sector in several dimensions of Tier 1 and Tier 2 cities.
According to the report, the real estate sector's growth, formalization, and organization have been primarily driven by government initiatives such as the Real Estate Regulation and Development Act (RERA), FDI, Smart City Mission, Pradhan Mantri Awas Yojana (PMAY), and Make in India. The report also notes that the construction of affordable homes in urban areas has received over Rs 8.28 lakh crores in disbursals, per the PMAY-U data.
Nayan Raheja from Raheja Developers stated that the government had taken significant steps to reorganize the real estate sector. The implementation of the Real Estate Regulation and Development Act (RERA) has greatly improved buyers' trust in real estate companies and developers, leading to a substantial increase in the credibility and authenticity of real estate transactions. Furthermore, the adoption of digital technology such as ERP solutions, reporting solutions, cloud computing, point solutions, building automation, and CRM has contributed significantly to the transformation of the real estate sector into a technology-friendly domain.
The report reveals that the stocks of green-certified buildings have increased by five times in 2022 compared to 2010. The resolution of listed developers suggests that the green real estate portfolio is expected to grow by approximately 25% by 2025-2030. Additionally, using renewable resources in the real estate sector is set to increase as Amrit Kaal's vision emphasizes ESG and green ecosystems as fundamental principles.
According to Rajesh K Saraf, MD of Axiom Landbase, pollution from construction activities has become a pressing concern for the real estate sector, resulting in construction halts or closure orders from environmental authorities. In response to these concerns, developers are taking proactive steps to build eco-friendly and green residential and commercial projects. Buoyed by the increasing demand from homebuyers, many developers are entering the green real estate market. To minimize the pollution effect, machinery and technology are being used in and around the construction site even during construction activities.
According to Rajjath Goen, MD of MRG Group, the real estate sector is committed to reducing carbon footprints, controlling pollution levels, and keeping up with changing times by implementing strategies to build green real estate and eco-friendly projects. The use of green construction technology, pollution-free raw materials, solar energy, and aluminum formwork are some of the effective measures the sector is adopting to ensure comprehensive development without compromising the environment.
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