Raju is from a lower middle-class strata and works for a start-up as an entry-level professional. Over the years he has managed to climb the career ladder. Now, with a family, a two-wheeler, and a secure bank account, his sights are set on the ultimate dream: homeownership. Sounds like a familiar story?
Whether it’s a modest 1BHK on the outskirts, owning a home represents not just Raju’s personal achievement but a common aspiration for countless Rajus across generations, symbolizing stability and a brighter future for their families. And as long as home ownership symbolises personal achievement and social status, real estate will continue to be one of the most important industries and a major contributor to the nation’s GDP.
The Indian real estate industry is a behemoth contributing significantly to the nation’s economy and employment, Marked by consistent growth, evolving trends, and the promise of a dynamic future, it’s an engine driving infrastructure development, attracting investments, and shaping the lives of millions. This edition of “The People Weekly” delves into the fascinating world of real estate, exploring its remarkable growth, exciting prospects, and far-reaching impact on the economy and job creation.
Real Estate: A Flourishing Landscape
The interim union budget 2024 has sent ripples of optimism in the real estate industry as it focuses on infrastructure development and affordable housing. The budget’s provision for the real estate sector has set the stage for further growth and development of this already growing industry. As per Statista, India’s real estate market is growing at a CAGR of 25.6% and is projected to cross 1 Trillion USD by 2030.
As for retail real estate With over 5 million sq feet of Grade A malls becoming operational in 2023, the retail real estate is booming – the highest in 7 years.
All this paints an optimistic picture of the real estate industry and its future.
Key Drivers of Real Estate Industry Growth
The Indian real estate industry has witnessed its share of ups and downs. Even though the pandemic brought a temporary halt, the sector bounced back remarkably, recording significant growth in 2022 across residential, retail, and office segments. This resilience underscores the inherent potential of the market, driven by several key factors:
Urbanization: India’s rapid urbanization, with millions migrating to cities, fuels the demand for housing, commercial spaces, and infrastructure. This trend is expected to continue, propelling real estate growth.
Government Initiatives: Policy initiatives like the Affordable Housing Scheme, Smart City Mission, and Real Estate Investment Trust (REITs) create a conducive environment for investment and development.
Rising Disposable Incomes: As disposable incomes rise, the demand for better housing and living standards increases, driving growth in the residential segment.
Evolving Demographics: A young population with changing lifestyle preferences is influencing the demand for co-living spaces, student housing, and modern office spaces.
Diversification: The industry is moving beyond traditional residential and commercial segments, embracing warehousing, logistics, data centres, and co-living spaces, catering to evolving needs.
Future of Real Estate in India
The Indian real estate market is expected to experience significant growth in the coming years. Experts predict a 9.2% CAGR for the next five years, fueled by a potent mix of economic and social factors. A rising GDP, rapid urbanisation, and government initiatives like affordable housing schemes are laying the foundation for a prosperous future. This growth will be further propelled by emerging trends. Tier II and III cities, with their burgeoning economies, will attract investor interest as metros become saturated. Millennials’ preference for flexibility and affordability will see a rise in co-living and co-working spaces. Sustainability will take centre stage, with eco-friendly and tech-integrated “smart buildings” gaining traction. The e-commerce boom will drive demand for warehousing and logistics facilities.
Real Estate Growth and Job Creation
The Indian real estate sector is one of the largest and most dynamic in the country, and it plays a significant role in economic growth and job creation. The sector is expected to grow at a CAGR of 9.2% by 2028, reaching a market size of US$780.6 billion.
The Real Estate industry is the second largest employment generator in India after agriculture, employing over 10% of India’s workforce. According to Statista, in the year 2023, the Indian real estate industry has employed over 71 million people. A report in Livemint spoke about the need for a skilled workforce in real estate given its rapid growth.
The growth in real estate also enables growth and employment opportunities in the ancillary sectors like design, contracting, facility management and key supplier industries like steel, cement, timber, construction etc.
Jobs exist across various segments, including:
PeopleLogic Opinion
The Indian real estate industry, with its promising growth trajectory, presents a multitude of opportunities. By embracing innovation, sustainability, and skilling initiatives, the sector can create a more inclusive and vibrant ecosystem for all stakeholders. As India continues its economic ascent, the real estate industry remains a key driver, shaping the nation’s urban landscape and providing a platform for millions to thrive.
Navigating the complex real estate landscape for talent requires more than just a job board. PeopleLogic goes beyond the ordinary, leveraging our specialized consultants and extensive network to unearth the perfect fit for your team. Our deep industry knowledge helps us understand your specific needs, while our tailored sourcing strategies tap into hidden talent pools beyond traditional channels. Rigorous screening and evaluation processes guarantee expertise, cultural alignment, and drive. Our proven track record of success in placing high-performing professionals across diverse roles speaks for itself. So, when it comes to finding the right people for your real estate venture, trust PeopleLogic to deliver the talent that will propel you forward.
