The real estate business is expected to contribute almost in excess of 17 percent to the Indian GDP by the year 2030 and is essential to India's attempts to achieve its goal of having an economy worth USD 5 trillion. The real estate industry is one of the primary employment sectors after agriculture. The creation of jobs in real estate benefits a variety of related businesses, including plastics and petrochemicals, steel and cement production, infrastructure development, and so on. The attention that the government has placed on providing affordable housing has helped to boost the confidence of real estate developers, and the real estate market would benefit from further encouragement on issues connected to policy.
In spite of the fact that it is home to 16% of the world's population, India only takes up a bit more than 2.5 per cent of the total area on the planet. For this reason, making the most efficient and fruitful use of land is of the utmost importance. The vast bulk of land is privately held and is often subdivided into a number of very small parcels. This is a challenge for integrated construction projects that span many acres. On the other hand, increasing urbanisation is generating a huge demand, especially for reasonably priced housing options. It is anticipated that by the year 2030, the global population would need a total of more than Twenty Four million more residences that may be purchased at an accessible price. To keep up with customer needs, real estate developers will need to ramp up their land acquisition and construction operations.
While the strain of the pandemic caused other sectors of the economy to crumble, the real estate industry was actually exhibiting indications of expansion during this time. This was made possible by the Government of India's implementation of a number of initiatives, including a reduction in the pricing of the primary inputs, the Real Estate Regulatory and Development Act (RERA), and the Goods and Services Tax (GST). The government has decreased the excise tax on gasoline and diesel as well as the import charge on essential raw materials, in addition to taking other measures to restrict exports, which has resulted in lower input costs. By enacting RERA, the government has enhanced transparency, regulated the real estate business, and held developers responsibility for their acts. In addition, RERA has held the government accountable for its own actions. The Goods and Services Tax (GST) has not only simplified a previously complicated tax structure, which resulted in the sector's total tax burden being decreased, but it has also put the industry on the path toward continuous development.
There is an ongoing and large demand for housing, and the government can easily accomplish its aim of providing homes for all by placing a little bit more emphasis on the sector. It would be wonderful if the government could come up with new policies that would be to the advantage of everyone concerned. It's possible that the federal government may opt to bring back the input tax credit for the Goods and Services Tax in order to lower the price of housing for the general populace (GST). Establishing a "one window clearance" is recommended in order to facilitate an approval process that is more streamlined. If the government is serious about encouraging more people to own homes in big cities, then it should seriously consider increasing the maximum price at which affordable property may be purchased. The objective of the PM to make quality homes available at prices that are accessible to everybody would be accomplished more rapidly if the limit were raised. As a consequence of an increase in the demand for housing, the government would acquire more financial resources.
The real estate business is experiencing difficulties due to a scarcity of accessible skilled people. The northern regions of Karnataka, Bihar, Tamil Nadu, Rajasthan, Orissa, and Uttar Pradesh as well as West Bengal provide the majority of India's skilled labour force. It would be extremely helpful if the government, in partnership with the real estate business, could implement a comprehensive skill development programme that is specialised to the construction trades. This would be done with the intention of resolving the issue at hand. Innovative technologies should be used by developers in order to reduce their dependency on manual labour.
There are a number of reasons why there has been an increase in demand for high-quality housing developments. Two of these reasons are the rise in employment in the information technology and information technology enabled services (IT/ITES) sectors and the consolidation of the real estate industry. Potential homebuyers prefer to work with large and well-established companies. Everyone engaged will benefit from spending greater emphasis on the real estate business since it is anticipated to continue to play a significant role in driving the economy (builders, the government, and consumers).
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