The Indian real estate sector is set to explode in size over the next few decades, says government think tank Niti Aayog’s vice-chairman Rajiv Kumar. Speaking at an event on luxury real estate here on Friday, Kumar said that the market is expected to jump over fivefold to $650 billion by 2040 and its share in the country’s gross domestic product (GDP) is set to double from the current seven per cent. “The government is committed not only to real estate sector but all aspects of it.
The government is very conscious and cognisant of what happening in the sector and how it contributes to the economy,” he said. Kumar also noted that the Interim Budget had showed the government’s intentions to ensure that the real estate sector grows and develops further. The Centre had announced a slew of incentives that analysts say will positively impact the sector and give some relief to those looking to pick up second homes.
The real estate sector, according to Kumar, currently contributes seven per cent to the country’s GDP and its share is expected to double by 2040. The current size of the real estate market stands at $120 billion, and is expected to hit $650 billion by 2040, he pointed out, adding that the workforce employed by the industry would rise to 66 million from 55 million currently.
Asking the industry to blend the best of Indian culture and the best of global facility and technologies in their future developments, Kumar said that the rollout of the goods and services tax and RERA would also help bring in organised growth.