Emerging as the largest employment provider, real estate and construction sectors will be creating about 7.5 crore jobs by 2020 said a report by KPMG India and the National Real Estate Development Council (NAREDCO).
“Real estate and construction sector in India is expected to be the third largest globally by 2030 contributing over 15% to the Indian GDP and emerge as the largest employer in India providing employment opportunities to over 75 million people,” KPMG the consultancy firm said.
The paper said “India’s urban population is forecasted to increase by about 40 percent from 420 million in 2015 to over 580 million by 2030. The government has launched several large programmes such as Smart Cities, Housing for All, AMRUT, HRIDAY along with policy support Real Estate Actto accommodate such a vast population base,”
The paper concentrates on the key programmes launched by the central government to address challenges in the area of to Urbanisation and the real estate sector. The paper also gives information regarding the policies taken up by the government to address these issues.
The report also highlighted that the India’s urban population would see an increase of 40% to over 580 million by 2030 from 420 million in 2015
As per the reports, India will require more than 110 million houses by 2020 alone in both Urban and Rural areas. Currently, there is a shortage of 60 million houses out of which 20 million exist in urban areas.
“There are a number of solid infrastructure projects in the pipeline. These include 432 projects for roads, more than 400 projects in railways, 70 projects for the development of airports and 75 for the ports,” the report said.
“India will need to construct 43,000 houses every day until 2022 to achieve the vision of ‘Housing for All’ by 2022. The sector is expected to contribute 15 per cent to the Indian economy by 2030, become the largest employer by 2022 – employing about 75 million people or more than 13 per cent of the total estimated workforce of India, remain the largest contributor to the state exchequer and will consume almost a quarter of India’s total electricity need by 2030,” said Neeraj Bansal, – KPMG in India.
The report mentioned that real estate and construction sector has attracted over $24 billion Foreign Direct Investment (FDI) between 2000 and 2015. The housing for all initiative will require $2 trillion investment by 2020.
“With every sixth person getting urbanised globally being an Indian, the real estate and construction sector holds significant opportunity for both global and domestic companies engaged across the value chain (design, development, construction, finance, etc.),” he added.