Realty sector to add 25% more jobs by 2025: Credai report
The Confederation of Real Estate Development Authority of India (Credai) has recently released a report which claimed that the real estate sector will employ 25% more jobs by 2025. The realty sector had 9.2 million job opportunities till 2016 and 25% jump in the number of jobs can be expected in the given time-frame.
Credai released the report — Assessing the Economic Impact of India’s Real Estate. The report predicted an increase in completed space across all key Indian cities from 3.6 billion sqft in 2013 to nearly 8.2 billion sqft by 2025. The report added that the economic contribution of the real estate sector will go up to 13% by 2025, from the 6.3% recorded last year.
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, said the report. The report also analysed the effect recent economic moves of the government — such as RERA and GST — will have on the real estate sector the long-term.
Jaxay Shah, Credai’s national president, said, “With positive demographics and a regulated environment, the sector is expected to spearhead the Indian economy by doubling its GDP contribution by 2025. This is bound to increase job opportunities. Moreover, there will be a positive impact on nearly 250 ancillary industries that depend on the real estate industry.”
The members of Credai pointed out that there still are challenges, which should be addressed by the government. As per the report, the numerous challenges inhibiting the sector include high borrowing costs, lack of institutional funding, lengthy approval processes, and slow and 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,” said the Credai members.
In the report, the Credai members also noted that if favourable government policies are put in place, the realty market would benefit a lot. Already the sector has gained from being a fragmented and disorganized one to becoming an organized one, noted the members.