India is on the verge of an economic revival, and the real estate market is emerging as a key driver ready to catapult the country's growth narrative to new heights. Thus, Pushpender Singh, MD, JMS Group says that it's important to understand the complex function the real estate industry performs in influencing India's economic environment.

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He believes that the real estate sector's crucial role in creating jobs and its contribution to Gross Value Added (GVA) growth have gone unnoticed for far too long. He says, "Remarkably it ranks as the nation's second-largest employer after agriculture, bringing into the employment fold millions of skilled and unskilled people, many of whom are from rural areas where alternative employment opportunities are scarce. This year, at the National Investiture Ceremony of the Confederation of Real Estate Developers Associations of India, the Union Minister of Commerce and Industry emphasised the real estate sector's contribution to India's growth story. The recognition signifies a shift in perception, as he pointed out that India is on the cusp of becoming the world's third-largest construction market in the next few years. This recognition highlights the real estate industry's considerable ability to promote economic growth, provide job opportunities and support innovation through start-ups."

Beyond construction sites, he informs that the real estate sector significantly supports around 270 allied industries, which has an impact on the whole supply chain. He adds, "When real estate activity is strong, suppliers of steel, cement, lumber, and building supplies as well as auxiliary service providers, including design, contracting, facility management, and property consultant businesses all prosper. The positive multiplier impact extends as the sector picks up steam, strengthening these related industries' development and stability as well."

Due to the collaborative efforts of the real estate industry, local governments, private developers and infrastructure corporations, he informs that in cities like Gurugram, Bengaluru, Pune, and others have witnessed extraordinary transformations. The MD of JMS Group opines, "Over the past few decades, economic development has been fuelled by this growth in urbanisation, which underscores the real estate industry's crucial role in determining the economic destiny of the country. The demographic dividend in India offers both an opportunity and a challenge. The country’s real estate industry would be mainly responsible for maintaining urbanisation and building the essential infrastructure to accommodate and cater to the need of the sizable young labour population. Not to mention that revenues generated from premiums, development charges, and approval fees from real estate activities will continue to bolster local and state governments, furthering socioeconomic development across the nation."

He firmly believes that the real estate industry has been given fresh life by a number of policy reforms. "A 66 per cent increase in spending on the Pradhan Mantri Awas Yojana (PMAY) demonstrates the commitment of the government to provide affordable homes. The Real Estate Regulatory Authority (RERA) has been instrumental in formalising the industry, promoting transparency and protecting homebuyers' rights. These improvements, together with enhanced labour regulations and general compliance, have facilitated the sector's expansion. Moreover, the real estate sector, encompassing both residential and commercial spaces, is increasingly gaining favour among investors. Innovative financial instruments like Real Estate Investment Trusts (REITs) are attracting younger investors looking to diversify their portfolios and explore avenues beyond traditional assets like fixed deposits or gold. The simplification of the Goods and Services Tax (GST) regime has made the real estate sector more resilient and conducive to business. This change has reduced complexities and streamlined processes, promoting a business-friendly environment that encourages investment."

In the years to come, he feels the real estate sector will not only be a key driver of economic development but also a major influence on urban planning, a way to capitalise on the demographic dividend and a reliable source of income for investors. "The real estate market is not just about bricks and mortar; it's about building the foundation for a stronger, more prosperous India," he sums up saying.