Real estate's share in GDP estimated at 6.3%: Report
Jul 28, 2013
Source : The Economic Times

 

NEW DELHI/MOSCOW: The contribution of the real estate sector to India's GDP has been estimated at 6.3 per cent in 2013, and the segment is expected to generate 7.6 million jobs in the same period, according to a report.

 

"The Indian real estate and construction industry is an integral part of the economy and plays an important role in the development of the country's infrastructure base and is one of the largest generators of economic activity," the report by global property consultant CBRE said.

 

The report, 'Assessing the Economic Impact of India's Real Estate Sector, was released by Minister of Housing and Urban Poverty Alleviation Girija Vyas at the inaugural session of Natcon 2013 in Moscow, the flagship real estate event of Confederation of Real Estate Developers' Associations of India (CREDAI).

 

India's real estate sector is estimated to have a total supply pipeline of close to 3.6 billion sqft lined up for completion in the year 2013, with about 98 per cent of this being concentrated in the residential segment, the report said.

 

"The potential for development and growth in the real estate sector is tremendous. It is expected to generate over 17 million employment opportunities across the country by 2025, thereby making a significant contribution to the GDP," CBRE South Asia Pvt Ltd Chairman & MD Anshuman Magazine said.

 

The total economic footprint generated by construction of this real estate pipeline will require a total investment of about Rs 254,000 crore, it said, adding that it will help generate revenues worth Rs 370,000 crore and provide jobs to about 7.6 million people across the country in 2013.

 

"The total contribution of the real estate sector to the national GDP has been estimated to be about 6.3 per cent in 2013 alone," it added.

 

Commenting on the report, Lalit Jain, Chairman, CREDAI and CMD of Kumar Urban Development Ltd said: "The report portrays the conservative status of the sector's contribution. For the first time a detailed attempt has been made to give facts on its importance in terms of GDP , industrial production employment opportunities."

 

The sector faces numerous challenges, such as high borrowing costs, lack of institutional funding, lengthy approval processes and slow and uneven infrastructure development, the report said.

 

The CBRE report lists a set of recommendations which could assist the sector in achieving its full potential in the long term. These include measures such as addressing supply constraints, streamlining the approval processes, permitting new sources of real estate funding and promoting private sector participation in the construction sector.

 

 

Latest Realty News

DDA approves land pooling policy
Jul 28, 2013
NEW DELHI: Delhi's land owning agency, Delhi Development Authority (DDA), has approved its ambitious land pooling policy that envisages change in the manner land is acquired in the capital.
P Surya Prakash appointed National President of ACCE (India)
Jul 27, 2013
DELHI: The Association of Consulting Civil Engineers (India) (ACCE (I)) today announced the appointment of Mr. P Surya Prakash as its new National President. With around 28 years of rich experience in the civil engineering sector, Mr. Surya Prakash will be responsible for the operations of ACCE (I) until 2015 and takes over from Mr. B S C Rao whose term ended in (Month) 2013.
HDFC Realty strikes Rs 100-cr property deal for Axis Bank
Jul 27, 2013
MUMBAI: In one of the biggest office rental transactions in recent times, private lender Axis BankBSE -1.84 % is believed to have entered into a property lease deal worth about Rs 100 crore for housing its back office operations.
Mahindra Lifespace to set up Rs 1,000 crore JV with Standard Chartered Bank
Jul 27, 2013
MUMBAI: Realty developer Mahindra Lifespace Developers and an investment arm of Standard Chartered Bank have entered into a joint venture for development of residential projects in India, a release said.
DDA approves land pooling policy
Jul 27, 2013
DELHI: The Delhi Development Authority (DDA) today approved the much-awaited land pooling policy which will pave way for easier acquisition of land for housing projects.
Seashore CMD denied bail
Jul 27, 2013
BHUBANESWAR: Seashore Group CMD Prashant Kumar Dash was on Friday produced before the Nabarangapur Sub-Divisional Judicial Magistrate (SDJM) Court here for his alleged fraudulent activities and embezzlement of money through Seemanchal Multi Purpose Cooperative Ltd in the periphery of Nabarangpur.
Works in 200 more illegal colonies of Delhi soon
Jul 26, 2013
BANGALORE: Armed with an in-principle approval from the union urban development ministry, the poll-bound state government is all set to take up development works in over 200 unauthorized colonies even as these do not meet the eligibility criteria of 50 percent built-up area in 2007 as per regularization guidelines.
Invest in property to avoid capital gains tax
Jul 26, 2013
BANGALORE: Capital gains arise when a house is sold. Capital gains tax is leviable on the sale or transfer of a house. It is computed on the indexed cost of the house sold. This cost is deducted from the amount received by the seller. The indexed cost is computed according to the indexation rates notified by the Income Tax Department for each year.
Peripheral locations in Bangalore host more affordable homes
Jul 26, 2013
BANGALORE: With the city extending towards new peripheries, residential development has also grown to accommodate the requirements of a burgeoning working population. As large multinational establishments are finding spaces in far-flung localities, the demand for housing in these belts has picked up. Reasonable cost of land has led to the emergence of the affordable or budget housing segment to cater to a younger, first time buyer profile coming to the city.
‘Spire Tec’ is now World Trade Center, Noida
Jul 26, 2013
NOIDA: ‘Spire Tec’ in Noida is North India’s second World Trade Center (WTC) after WTC Manesar (erstwhile Spire Edge), and also a member of an elite global business network that includes more than 330 WTC complexes in 100 countries.

Latest Realty News Of State

Realty Talk's