Increasing urbanisation & transformation of the real estate sector from a largely fragmented to an organised one, thanks largely due to regulatory reforms such as RERA and GST, is expected to increase the annual real estate supply in India from about 3.6 billion sq ft in 2013 to about 8.2 billion sq ft in 2025. This will conjointly impact the expansion of jobs that’s probably to ascertain a spurt of over 80 p.c by 2025.
The potential employment opportunities in the sector are expected to touch 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 to almost 13 percent in 2025. Long-term prospects appear highly positive for the sector, with a potential increase in completed space from 3.6 billion sq ft in 2013 to about 8.2 billion sq ft in 2025, it says.
Commenting on the report, Chairman, CBRE India said, “The sector continues its metamorphosis from being largely fragmented and unorganised to become structured and organised like 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 firms, 82 p.c of Indian respondents conceive to increase their head count within the next 3 years reflecting the country’s buoyant economy, steady progress in enacting regulatory reforms and booming outsourcing and ITeS sector, he said.
The annual land offer in Republic of India is anticipated to extend from concerning 3.6 billion square measure in 2013 to concerning 8.2 billion square measure 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 end in consolidation in deposition, higher quality warehouses and boost influx 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 monetising their assets, giving equity investors a better exit mechanism,” he said.
“With positive demographics & regulated atmosphere, the important 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.