New Delhi: The Indian real estate market is estimated to touch $1 trillion by 2030 driven by rising demand and various reforms in the past seven years like new realty law RERA, Housing and Urban Affairs Secretary Durga Shanker Mishra said on Wednesday.
The number of people employed in the sector is also expected to rise to 7 crore in coming years, from 5.5 crore in 2019, he said while addressing a CII event on the real estate sector.
The secretary further said that the states have been asked to soon implement the Model Tenancy Act, which was passed by the Union Cabinet in June this year.
Mishra also clarified that the law once implemented by the states will be prospective in nature and all disputes related to rent agreements will be dealt under the old laws of respective states.
He pointed out that the real estate sector suffered a "setback" during the first and second wave of the COVID-19 pandemic but said the housing demand has revived.
"The size of the real estate sector was around $200 billion 2-3 years ago. We expect the real estate market to touch $1 trillion by 2030," the housing secretary said.
"It is not mere talk and guess work. The trend clearly shows that the real estate sector of our country will touch the figure of $1 trillion in the next 7-8 years," Mishra said, while emphasising the importance of this industry in the Indian economy.
Citing various reports of property consultants, the secretary said housing demand in the first quarter of this fiscal year has risen as compared to the year-ago period.
Talking about the importance of this sector in employment generation, he said: "Around 5.5 crore people were employed in the sector as per 2019 figure. Our predictions for the future is that around 7 crore people will be employed in this industry."
That apart, Mishra said the real estate sector creates demand for about 270 other industries, including cement and steel.
"Therefore, real estate is an important sector of the economy. Nobody should have any doubt about it," he stressed.
Hence, Mishra said, the government has given a lot of focus on this sector in the past seven years and has taken measures in every budget since 2014.
The secretary said it is estimated that around 88 crore people will be living in urban areas by 2051 as against the current 46 crore, creating huge potential for real estate development.
Describing the enactment of new realty law RERA as the biggest reform, he said the new legislation has taken the industry to another level.
"RERA has transformed this sector and changed the perception of this industry. Consumers now have confidence that their investments are safe," Mishra said.
Sharing the success story of RERA, he said around 67,000 projects and 52,000 property agents are registered under this law. More than 70,000 cases have been disposed of by the real estate authorities established under this law.
All states, except West Bengal have implemented this law, he said, adding that the ministry has written to the state government regarding this.
He listed Model Tenancy Act as another reform that would create a lot of demand for rental housing in the country. The secretary said the ministry has asked all states to implement this law at the earliest.