India's real estate sector is estimated to have a total supply pipeline of close to 3.6 billion sq ft lined up for completion in the year 2013, with about 98% of this being concentrated in the residential segment.
This was released by the latest CB Richard Ellis, CBRE report titled "Assessing the Economic Impact of India's Real Estate Sector' that provides a broad view of the extent of economic opportunities generated by the real estate and construction sector in the country.
"The potential for development and growth in the real estate sector is tremendous. It is expected to generate over 17 million employment opportunities across the country by 2025, thereby making a significant contribution to the GDP. However, the industry does require the support and encouragement of policy makers in order to achieve this goal," Anshuman Magazine, Chairman & MD, CBRE South Asia Pvt. Ltd.
As per the report, the total economic footprint generated by the construction of this real estate pipeline will require a total investment of about INR 254,000 crores, will help generate revenues worth INR 370,000 crores, and provide employment to about 7.6 million people across the country in 2013. The total contribution of the real estate sector to the nationalGDP has been estimated to be about 6.3% in 2013 alone.
Yet, this footprint is restricted by numerous challenges inhibiting the sector such as high borrowing costs, lack of institutional funding, lengthy approval processes and slow & uneven infrastructure development. Once these bottlenecks are addressed, we can expect the economic contribution of the sector to increase considerably, with its share of the GDP to more than double from 6.3% in 2013 to almost 13% by 2025. With the removal of the inherent bottlenecks present in the sector, the 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. This will generate significant employment opportunities, with annual employment expected to increase from 7.6 million in 2013 to almost 17 million in 2025, thereby providing substantial socio-economic opportunities for growth in the country
"The report portrays the conservative status of the sector's contribution. For the first time a detailed attempt has been made to give facts on its importance in terms of GDP, industrial production employment opportunities. The projection given can be accelerated if reforms are implemented," said Lalit Jain, chairman, CREDAI and CMD, Kumar Urban Development Ltd.
This was released by the latest CB Richard Ellis, CBRE report titled "Assessing the Economic Impact of India's Real Estate Sector' that provides a broad view of the extent of economic opportunities generated by the real estate and construction sector in the country.
"The potential for development and growth in the real estate sector is tremendous. It is expected to generate over 17 million employment opportunities across the country by 2025, thereby making a significant contribution to the GDP. However, the industry does require the support and encouragement of policy makers in order to achieve this goal," Anshuman Magazine, Chairman & MD, CBRE South Asia Pvt. Ltd.
As per the report, the total economic footprint generated by the construction of this real estate pipeline will require a total investment of about INR 254,000 crores, will help generate revenues worth INR 370,000 crores, and provide employment to about 7.6 million people across the country in 2013. The total contribution of the real estate sector to the nationalGDP has been estimated to be about 6.3% in 2013 alone.
Yet, this footprint is restricted by numerous challenges inhibiting the sector such as high borrowing costs, lack of institutional funding, lengthy approval processes and slow & uneven infrastructure development. Once these bottlenecks are addressed, we can expect the economic contribution of the sector to increase considerably, with its share of the GDP to more than double from 6.3% in 2013 to almost 13% by 2025. With the removal of the inherent bottlenecks present in the sector, the 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. This will generate significant employment opportunities, with annual employment expected to increase from 7.6 million in 2013 to almost 17 million in 2025, thereby providing substantial socio-economic opportunities for growth in the country
"The report portrays the conservative status of the sector's contribution. For the first time a detailed attempt has been made to give facts on its importance in terms of GDP, industrial production employment opportunities. The projection given can be accelerated if reforms are implemented," said Lalit Jain, chairman, CREDAI and CMD, Kumar Urban Development Ltd.
http://timesofindia.indiatimes.com/business/india-business/Real-Estate-Sector-to-contribute-about-6-3-to-the-countrys-GDP-in-2013/articleshow/21454018.cms
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