By 2030, India’s population will have grown so large that its real estate and construction sector will become the third largest on earth, according to a background paper released Friday by KPMG and the National Real Estate Development Council.
Real estate and construction will then provide livelihoods to some 75 million people — more than any industry. The sector will account for 15 percent of the Indian gross domestic product (GDP).
By then, 583 million will live in India’s urban areas, compared with last year’s 420 million, which has made the country the world’s second-largest urban community. The current housing shortage in the country’s urban areas, however, stands at 20 million.
By 2022, India will need to build 110 million homes to shelter the entire populace, in both urban and rural areas.
India’s government is ramping up efforts to take the edge off a possible housing crisis. Over the next seven years, the government will be constructing 2 crore homes under the banner of “Pradhan Mantri Awas Yojana.” Another flagship government initiative, the Smart Cities mission, envisages improvements in core infrastructure for 100 cities across the subcontinent by 2020. Indian policymakers have also laid out legislative support, such as the Real Estate Act and the loosening of foreign direct investment (FDI) caps, to facilitate the country’s rapid urbanisation.
According to the research, the size of India’s construction market will have ballooned to USD1 trillion by 2025. India has several infrastructure projects in the offing, including 432 road projects worth INR6.5 trillion (USD97 billion) and 40 rapid transit projects worth INR4.5 trillion (USD67 billion).