Real estate market to touch $1 trillion by 2030: Housing secretary

NEW DELHI: The Indian real estate market is estimated to touch USD 1 trillion by 2030 driven by rising demand and various reforms in the past seven years like new realty law RERA , Housing and Urban Affairs Secretary Durga Shanker Mishra said on Wednesday.

The number of people employed in the sector is also expected to rise to 7 crore in coming years, from 5.5 crore in 2019, he said while addressing a CII event on the real estate sector.

The secretary further said that the states have been asked to soon implement the Model Tenancy Act, which was passed by the Union Cabinet in June this year.

Mishra also clarified that the law once implemented by the states will be prospective in nature and all disputes related to rent agreements will be dealt under the old laws of respective states.

He pointed out that the real estate sector suffered a "setback" during the first and second wave of the COVID-19 pandemic but said the housing demand has revived.

"The size of the real estate sector was around USD 200 billion 2-3 years ago. We expect the real estate market to touch USD 1 trillion by 2030," the housing secretary said.

"It is not mere talk and guess work. The trend clearly shows that the real estate sector of our country will touch the figure of USD 1 trillion in the next 7-8 years," Mishra said, while emphasising the importance of this industry in the Indian economy.

Citing various reports of property consultants, the secretary said housing demand in the first quarter of this fiscal year has risen as compared to the year-ago period.

Talking about the importance of this sector in employment generation, he said: "Around 5.5 crore people were employed in the sector as per 2019 figure. Our predictions for the future is that around 7 crore people will be employed in this industry."