National Real Estate Development Council (NAREDCO) projects that the construction sector in India is likely to be the largest employer by 2022, and its size is expected to go up at about US$ 1 trillion by 2025 and become the third largest sector globally.
NAREDCO has expressed that R&D spend needs to increase in the construction and real estate sectors significantly, so that the stuck projects develop rapidly. At NAREDCO’s recently held 13th National Convention, the fraternity along with KPMG jointly released a background study prepared by the latter, showcasing the Indian Economic, Urbanization and Real Estate & Construction sector trends with some key findings such as India’s urban population expanding by 11-12 million people annually and the Indian economy may reach US$10 trillion by 2030.
Rajeev Talwar, Chairman, NAREDCO, reportedly highlighted that the real estate sector is among the important pillars of the Indian economy. However, the sector is facing several headwinds restricting it to achieve its full potential.The funding in the sector needs to be enhanced and the banking and private equity sector needs to be liberal and change its outlook towards the sector.
Further, Parveen Jain, President, NAREDCO, in his observations demanded from the policy-makers that the real estate and construction sector should have sufficient finance with reduced interest rates facilities and all measures be put in place to invigorate the sector as per desired objectives, as per reports.
And, Utkarsh Palnitkar, Partner and Head Infrastructure, Government and Healthcare, KPMG, reportedly stressed on the fact that the construction sector is an important contributor to the economy and a sound public-private partnership can make India the fastest growing construction market globally.
At the convention, it was emphasised that the real sector should adopt an industrial approach to achieve housing for all by 2022 and developers should re-look at design improvement and procurement environment, collaborative contracting and partnership with contractors.
Further, the top 5 suggestions generated at the convention included: