Real Estate Industry To Cross 01 Trillion Mark 25 Million Affordable Houses Needed

After battling with some policy disruptions and problems caused by the Corona epidemic, the real estate industry is now recovering rapidly. Especially in the affordable housing segment, the demand is strong. Due to this, crores of affordable houses are going to be needed in the country within the next few years. Along with this, the size of the real estate industry is going to increase manifold.

Real estate industry will grow so much

According to a report by the National Real Estate Development Council ie NAREDCO and E&Y, an organization of real estate companies, by the year 2030, India’s real estate industry will be worth $ 01 trillion. The size of the industry was 200 billion dollars in 2021. It has been said in the report that due to the immense possibilities of the real estate sector, it is expected to grow about 5 times in the next 7 years.

Will make a big contribution to GDP

According to the report, the real estate sector is ready to make a big contribution to the country’s economy along with the increasing demand. By the year 2030, this sector can contribute up to 18 to 20 percent of the country’s GDP. It has also been told in the report that the demand and supply gap in this sector in India is such that it is helpful in accelerating the growth in the coming years.

there is a shortage of houses

According to the joint report, there is estimated to be a shortage of about 01 crore housing units in urban areas. In the coming times also, the demand for houses is going to increase wildly in different parts of the country. The report also points to this and says that by the year 2030, 2.5 crore additional housing units may be required in the country only in the case of affordable houses.

These reasons cause delay

Regarding the problems in the real estate sector, the report said that generally term loans equal to 30-35 percent of the cost of a project are available. However, if the project gets delayed due to any reason, it becomes difficult to find finance for the increased cost. On the other hand, loan installments start even before the surplus cash arrives. According to the report, the main reasons behind the delay in real estate projects in the country are delay in land clearance and low pre-sales.