2024, Vol. 6, Issue 3, Part A

Real Estate is a major employment generator which is the second largest next to agriculture in India. Real Estate has a chain linkage with the construction sector which in turn is mobilized by more than 200 industrial ancillaries of building construction and production materials like cement, steel, aluminium, PVC, electrical appliances etc. Real Estate sector have 5 sub sectors like Residential Real Estate, Commercial Real Estate, Hospitality Real Estate, Retail Real Estate and Industrial Real Estate or Special Economic Zone (SEZ) with a recorded growth of almost 30 percent per annum which is about 6.5 percent of GDP of the country and also attracting Foreign Direct Investment (FDI). Real Estate is a business which is profound in terms of investment asReal Estate market is expected to grow to INR 65000 crores by 2040 from INR 12000 crores in 2019 due to rapid urbanization, segmental rise in household income and societal emergence of nuclear families etc. and government initiative like “Housing for All”. The sector had faced COVID-19 situation and restrictions like lockdown, travel bans and work from home and presently trying to recover with a dynamic interplay between government policies and buyer aspirations like tax equality, improved tax compliance, rebate on stamp duty, establishment of Real Estate Regulatory Authority (RERA), 66 percent increased allocation of Prime Minister Awas Yojona (PMAY) to INR 79000 crores in earmarked 8 Tier-I cities, 102 Tier-II cities and 214 Tier-III cities of the country. In the recent years Real Estate returns in both private and public are witnessing considerable ebb and flow that are reflected in overall sentiments of Realtors and Consumers. In our country it has been observed, Year over Year (YoY) record on sales marked 68% in 2022 for residential sector of Real Estate which signifies the magnificence of it in terms of growth and fast growing business. Tier II cities in 2022 had set the trends and benchmarks of Real Estate sector of our country with a resultant pace of growth from 2021 in spite of countrywide recessive challenges noticed with physical workforce, surge in the cost of construction materials.

This paper highlights the trends and progress of Real Estate sector in the country depicting some of the challenges and opportunities for the sector using secondary data from different sources.