Annual real estate supply in India expected to double by 2025
The implementation of GST and RERA will help in increasing the annual real estate supply in India, say experts from Imperia Structures Ltd, a leading real estate company.
According to the experts, urbanization and transformation of the real estate sector will increase the annual real estate supply from 3.6 billion square feet in 2013 to about 8.2 billion square feet in 2025. With unorganized players out of the equation, the road gets simpler for organized players.
The increase in real estate supply will also create job opportunities in this sector. According to a report, the growth of jobs is likely to see a spurt of over 80 per cent by 2025. The reviews of Imperia Structures also suggested that the economic contribution of real estate was 6.3 per cent in 2016, which is projected to increase significantly to almost 13 per cent in 2025.
Real estate players in developed countries are structured and the same trend is now being followed in India. The growing prominence of India in the global scenario has had a positive impact, leading to increased expectations and responsibilities in this sector. The credibility of this sector is going to be stable in the long run under RERA, which is likely to open up funding avenues and bring down lending costs.
Experts from Imperia Structures Ltd also said that the introduction of new construction technologies is going to enhance the growth of real estate construction activity in the country.
Developers are likely to gain access to funds by monetizing their assets, giving equity investors a better exit mechanism with REIT (Real Estate Investment Trust) to become a reality in coming quarters. The real estate sector is projected to doubling its GDP contribution by 2025 with a regulated environment. According to the reviews of Imperia Structures Ltd, government policies are favoring the real estate sector, thereby enhancing the chances of a promising future for the Indian realty.