Housing and Urban Affairs Minister Hardeep Singh Puri on Friday said a highly matured and developed real estate sector with an estimated market size of $1 trillion by 2030 is needed to achieve the vision of a developed India by 2047.
Addressing an event organised by realtors' body CREDAI's youth wing, the minister said the enactment of real estate regulatory law 'RERA' has been a transformational development for the entire sector.
"A developed India by 2047 will also require a highly matured and developed real estate sector, both in the residential and the commercial segment," Puri said.
He highlighted that investments are coming into commercial real estate including data centres and warehousing.
The establishment of Real Estate Investment Trusts (REITs) has also helped in attracting investments into the real estate sector, the minister added.
"RERA was a transformational development. It is unbelievable that one of the largest sectors in the economy didn't have a regulator for nearly 70 years," Puri said.
The minister highlighted that 1,22,553 real estate projects and 86,262 real estate agents are registered under the RERA across the country. More than 1.2 lakh consumer complaints have been disposed of by regulatory authorities.
"Some states are doing better than others (in implementation of RERA) law," he added.
Talking about the importance of the real estate sector, Puri said it is the second largest employer in the country with market linkages across 250 sectors.
"It is estimated that the sector will contribute 15% to the GDP and will reach a market size of $1 trillion by 2030," he said.
An additional 25 million units of affordable housing will be required by 2030 to meet the growing urban needs of the country, the minister said.
Puri also appreciated the CREDAI pledge to make the real estate industry net zero by 2047.
The minister also cautioned that the real estate sector can also have bubbles and reminded builders that the global financial crisis of 2008-09 also took place in the real estate sector.
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