Job creation in real estate sector to jump over 80%: CREDAI-CBRE report
CREDAI–CBRE report titled ‘Assessing the Economic Impact of India’s Real Estate’ says that jobs in the real estate sector are likely to increase by more than 80% by 2025 as the potential employment opportunities in the 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% in 2016 (IBEF figures) to almost 13% in 2025. Long-term prospects appear highly positive for the sector, with a potential increase in completed space from 3.6 billion square feet in 2013 to about 8.2 billion square feet in 2025, it said.
Increasing urbanisation demand for new housing and the expanding urbanisation of tier II and tier III cities in the country are cited as prime drivers for real estate growth.
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 result in consolidation in warehousing, leading to emergence of larger, better quality warehouses and boost inflow 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,” the report quoted Abhinav Joshi, head, CBRE Research India, as saying.
However, this projected expansion in the economic footprint of the sector is subject to an effective utilisation of the potential opportunities for growth and implementation of relevant policy measures to resolve bottlenecks bothering the sector, the report added.