Size of real estate market to grow to $650 billion by 2040 from $120 billion now: Niti Aayog Vice-Chairman Rajiv Kumar

Kumar said the recent Interim Budget has demonstrated that the government would take steps to make sure that the real estate sector grow and develop further

Press Trust of India February 22, 2019 17:51:56 IST
Size of real estate market to grow to $650 billion by 2040 from $120 billion now: Niti Aayog Vice-Chairman Rajiv Kumar
  • The Centre has offered a lot of tax incentives to developers building affordable houses and also tax sops to homebuyers

  • The Niti Aayog vice-chairman said the real estate sector is contributing seven percent to the country's GDP

  • The Niti Aayog vice-chairman also said the real estate sector would contribute more with rapid urbanisation

New Delhi: Indian real estate market is expected to jump over fivefold to $650 billion by 2040 and its share in the country's gross domestic product (GDP) is set to double from the current seven per cent, Niti Aayog Vice-Chairman Rajiv Kumar said Friday.

"The government is committed not only to real estate sector but all aspects of it. The government is very conscious and cognisant of what happening in the sector and how it contributes to the economy," he said while addressing a global luxury realty conclave organised by India Sotheby's International Realty.

Kumar said the recent Interim Budget has demonstrated that the government would take steps to make sure that the real estate sector grow and develop further so that this industry contributes even more to the economy.

The Centre has offered a lot of tax incentives to developers building affordable houses and also tax sops to homebuyers looking to purchase second homes.

Highlighting the importance of this sector, the Niti Aayog vice-chairman said the real estate sector is contributing seven percent to the country's GDP and its share is expected to double by 2040.

Size of real estate market to grow to 650 billion by 2040 from 120 billion now Niti Aayog ViceChairman Rajiv Kumar

Representational image. Reuters.

The current size of the real estate market is already $120 billion dollar and this will grow to $650 billion by 2040, he said, adding that the industry employs 55 million people now and this number will rise to 66 million as it grows.

"This sector is heart of the economy. It has backward linkages with 200 other industries," Kumar said.

He also said the real estate sector would contribute more with rapid urbanisation.

Kumar said the two legislations -- the goods and services tax and the RERA -- implemented by the government would help in organised growth of this sector.

He asked real estate companies to blend best of Indian culture and best of global facility and technologies in their future development of properties.

Speaking on the sidelines of the event, Embassy group President (Residential Business) Reeza Sebastian said there is a good demand for completed housing units in all categories including luxury homes.

Tata Housing Managing Director and Chief Executive Officer said the demand for luxury houses is slow and this has given an opportunity to better our product portfolio in terms of design and other services.

Colliers International National Director Gagan Randev said: "Luxury real estate market has become much more discernible with a preference in most markets for gated communities offering a luxury lifestyle. Developers are differentiating their high end products and this has resulted in success of branded residence."

Gaurs Group MD Manoj Gaur said the luxury housing is looking up and its demand is growing because of a growing number of high networth individual in the country.

Amit Goyal, CEO of India Sotheby's International Realty, said this is the third edition of global luxury real estate conclave, which provides a platform where all the stakeholders come together to discuss the ever-changing luxury property market.

India Sotheby's International Realty is part of the of US-based Sotheby's International Realty, which operates a global network of over 22,000 affiliates with 970 offices across 72 countries, dealing in luxury real estate properties.

Updated Date:

also read

e-Shram generates hope for unorganised sector workers, but hardships won't disappear overnight
Business

e-Shram generates hope for unorganised sector workers, but hardships won't disappear overnight

While the economy has shown signs of recovery after contracting in the first two quarters of the 2020-21 financial year, experts say the road to complete recovery would be a long one

Cost of cleaning up plastic pollution around the world in 2019 amounted to $3.7 trillion: WWF report
World

Cost of cleaning up plastic pollution around the world in 2019 amounted to $3.7 trillion: WWF report

WWF said societies were "unknowingly subsiding" plastic, with their estimates for the lifetime costs of 2019 production equivalent to more than India's GDP.

I-T department widens probe against actor Sonu Sood; searches multiple properties in Mumbai
Entertainment

I-T department widens probe against actor Sonu Sood; searches multiple properties in Mumbai

A real estate deal and some other financial transactions linked to Sood are under the scanner of the department, official sources had said