Why Declaring Real Estate Industry is crucial for India's Future

The Indian real estate sector has long been a cornerstone of the country’s Economic Growth, yet it continues to face significant challenges due to its lack of recognition in formal policy frameworks.

Industry leaders are now urging the government to grant real estate official "Industry" status in the Union Budget 2025. Experts believe this recognition could unlock unprecedented growth, enhance transparency, and significantly boost the sector’s economic contribution. 

Why does this recognition matter, and how could it reshape the future of real estate in India? Let’s delve deeper to uncover its potential impact.

Top 3 Reasons for Real estate Industry is a crucial for India's Future 

Ease of Credit Access: Recognizing real estate as an industry would enable developers to access funding at lower interest rates. This could reduce project costs, ensure timely project completion, and promote greater transparency and healthy competition among developers and buyers.

Simplified Governance: An official industry framework would streamline compliance, eliminate unethical practices, and foster fair dealings among stakeholders. This structured approach would enhance trust, transparency, and the overall credibility of the sector.

Boosted Investments: Industry status would attract institutional investors and increase foreign direct investment (FDI), particularly in high-demand segments like affordable housing and commercial real estate, driving substantial growth in the sector.

Key Demands from Real Estate Stakeholders

Tax Reforms: Tax reforms would alleviate the financial burden on homebuyers by streamlining GST rates for under-construction properties. Additionally, changes in stamp duty could stimulate demand within the real estate market. A comprehensive tax solution would not only attract first-time buyers but also investors, fostering sector growth and expanding homeownership opportunities.

Regulatory Reforms: Strengthening and standardizing regulatory frameworks, such as RERA, will ensure better compliance and transparency in the real estate sector. This will protect buyers' interests, minimize disputes, and create a level playing field for developers. A well-regulated environment will also attract more institutional investments, boosting confidence in the real estate market.

Impact of the Real Estate Sector on Indian Economy

Significant Contribution to GDP: The real estate sector accounts for around 7% of India’s GDP, with projections indicating this figure could rise to 13% by 2030. Through urbanization and government initiatives, real estate is set to play a pivotal role in shaping India’s future economic growth.

Employment Growth: As the second-largest employment generator in India after agriculture, the real estate sector supports millions of jobs, ranging from architects and laborers to legal advisors and consultants. With growing demand for skilled professionals, the sector continues to create diverse career opportunities.

Infrastructure Development: The real estate industry fosters infrastructure development, enhancing connectivity and urban planning. Large-scale projects, including smart cities and integrated townships, not only transform living spaces but also stimulate economic growth.

Diverse Employment Opportunities: Real estate offers a wide range of employment opportunities, from blue-collar jobs such as construction workers to white-collar roles like engineers, marketers, and consultants. The sector serves as a dynamic ecosystem catering to various skill sets, driving widespread job creation.

By LNN (Liyaans News Network)