Real estate major contributor to Telangana’s gross value addition

22 Oct 2021 CW Team

The real estate sector has driven Telangana's gross value added (GVA) by 1.5-2 times between 2014-15 and 2020-21. Realty dwellings and professional services were the main drivers of the services sector, accounting for about 35% of its GVA in 2020-21.

The GVA of the realty sector is expected to reach Rs 1.85 lakh crore in 2020-21 compared to Rs 96,912 crore in 2014-15. Since then, the GVA has increased by Rs 15,000 to Rs 20,000 crore year-on-year (YoY).

According to an official, the Covid-19 lockdowns and slowing of services did not affect the services sector. Hyderabad plays a significant role in it.

The GVA of trade, repair, and hotels have increased between 2014-15 and 2020-21, despite the Covid-19 pandemic. This sector is also expecting to reach Rs 1.36 lakh crore in 2021.

As per the industry experts, robust GVA, especially in the services sector, represents a positive sign. Director of Andhra Mahila Sabha College for Women and former professor at Osmania University, A Nakula Reddy, said that the Goods and Services Tax (GST) of the state shows that we should look more into the number of dwellings sold and not only on the income receipts.

The Gross State Value Added (GSVA) between 2015-16 and 2020-21 increased by about 11.6% annual average in Telangana compared to the national average of 7.8%, which showed the supply or production of the economy. The GSVA of Telangana increased by 2.9% in 2020-21, raising India's GVA growth by 5.9%.

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