The realty sector is likely to add another 8 million jobs by 2025 driven by initiatives like new real estate regulatory law and the GST, says a report.
According to realtors' body CREDAI and consultant CBRE's joint report 'Assessing the Economic Impact of India s Real Estate', the contribution of real estate sector in the country's GDP is expected to double at 13 per cent by 2025.
"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 per cent in 2016 to almost 13 per cent in 2025," CBRE said in a statement.
The report said that the long term prospects appear highly positive for the sector and projected that the annual real estate supply is expected to reach up to 8.2 billion sq ft in 2015 from 3.6 billion sq ft in 2013.
"Increasing urbanisation 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," the statement said.
However, the report said that the projected expansion of the real estate sector is subject to an effective utilisation of the potential opportunities for growth and implementation of relevant policy measures to resolve bottlenecks.
Commenting on the report, CREDAI President Jaxay Shah said: "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." Shah said the growth in this sector would lead to an increase in job opportunities. This will also have a cascading effect on about 250 ancillary industries which are dependent on the real estate industry.
Anshuman Magazine, Chairman, CBRE India and South-East Asia said, "The sector continues its metamorphosis from being largely fragmented and unorganised to become as structured and organised as its peers in developed economies across the globe."
India has emerged as the most preferred outsourcing destination as per the findings of the 2017 Asia Pacific Occupier Survey Report of CBRE, he added.
"Among Asia Pacific-based companies, 82 per cent 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," Magazine said.
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