Real estate body CREDAI on Tuesday highlighted the need for the sector to focus on consolidation to emerge stronger.
Releasing a report titled ‘India 2030 – Exploring the Future’, the Confederation of Real Estate Developers Association of India said the future is bright and some of the current problems faced by the sector would soon be addressed. Credai is holding its 19th annual international convention NATCON 2019 here.
The report, which was jointly released by Credai and its knowledge partner CBRE, encapsulates the potential of Indian economy by 2030 and its implications on the growth of the real estate sector. As per the report, India is projected to have a $9-trillion economic opportunity by 2030, wherein the per capita income could touch $5,625 for a population of about 1.5 billion. It also said the annual spending on infrastructure will touch 7-8 per cent of the GDP.
Credai Chairman Jaxay Shah said, “The correlation between the growth of some of the most developed economies and realty has been well-established for years and this report also echoes that. With our current government, we all are dreaming of a vision of a New India, which is full of opportunities and implies progressive growth for businesses, home buyers and the community at large and we at Credai are committed to transforming realty to achieve that.”
Credai President Satish Magar said, “India continues to remain a high-priority market for its long-term growth potential as is evident from the increased investment flows in the last few years. The government’s $5-trillion mission and vision of a ‘New India’ imply that top industries contributing to our economy like real estate needs to usher in transformative measures which can help shape these goals.”
Anshuman Magazine, Chairman and CEO, India, South-East Asia, Middle East and Africa, CBRE, said, “In the wake of positive policy reforms and the emergence of a strong workforce, the momentum of India’s economic growth is steady and it will only grow stronger in the next 10 years.”
By 2030, India’s urban population will contribute as high as 75 per cent to the GDP, up from 63 per cent at present. India needs to spend 7-8 per cent of its GDP on infrastructure annually to boost public and private investment in infrastructure.
The number of households is expected to surge with close to 386 million households and almost 40 per cent of Indians being urban residents by 2030. The scale of development is likely to change significantly as from mere standalone buildings, developers are expected to venture into integrated townships, theme-based townships, developments linked to economic activity and even self-sustaining mini townships/cities.