Foreign direct investment in Indian real estate sector to grow 20% by 2025: Industry

New Delhi, July 10 (IANS): The Indian real estate sector has emerged as a growth engine for the economy, with foreign direct investment (FDI) in the sector expected to grow by 20 per cent by 2025, according to industry experts.

The real estate sector has emerged as the largest source of employment and rapid urbanisation, smart cities, housing for all and relaxation of foreign direct investment (FDI) regulations will further boost the sector, Sanjeev Kumar Arora, member, Haryana RERA, said at an Assocham event.

The government introduced the RERA Act, 2016, to bring transparency to the sector with disciplined solutions for growth and sustainability. Around 1.25 lakh projects have been registered under RERA across India since its enactment, Arora said.

Pradeep Aggarwal, Chairman, National Council for Real Estate, Housing and Urban Development, ASSOCHAM and Chairman, Signature Global (India), said that to achieve the goal of ‘Viksit Bharat’ by 2047, the housing and real estate sector needs a sustained impetus that will also generate more employment opportunities.

“The vision is that every family will have a home and an opportunity to work as this sector is key to making India the best economy. Real estate is a Rs 24 lakh crore market and its contribution to GDP is around 13.8 per cent,” Aggarwal told the gathering.

In a bid to increase the “ease of living” and dignity of millions of Indians, the government has decided to further expand the Pradhan Mantri Awas Yojana (PMAY) scheme and build 3 million more houses in rural and urban areas.

According to Prime Minister Narendra Modi, the decision “underlines the government’s commitment to addressing the housing needs of our nation and ensuring that every citizen has a better quality of life.”“The expansion of PMAY also underlines our government’s commitment to inclusive growth and social well-being,” he said.