Union Finance Minister Nirmala Sitharaman presented the Economic Survey 2023-24 on July 22. Following the presentation, Chief Economic Adviser Dr. V. Anantha Nageswaran held a press conference to address media queries regarding the survey.
The Economic Survey report highlighted the role of Goods and service tax ( GST ) 2017, he Real Estate (Regulation & Development) Act, 2016 ( RERA ) and Insolvency and Bankruptcy Code in Robust Recovery of Real Estate.
Real estate and ownership of dwellings have accounted for over seven per cent of the overall GVA in the past decade, highlighting their integral role in the economy. Following two challenging years of pandemic-induced lockdowns and economic instability, the real estate sector has experienced a robust recovery. The pandemic has shifted homebuyers’ preferences toward larger, sustainable spaces with additional amenities, driven by remote and hybrid working trends.
In 2023, residential real estate sales in India were at their highest since 2013, witnessing a 33 per cent YoY growth, with a total sale of 4.1 lakh units in the top eight cities. The new supply witnessed an all-time high, with 5.2 lakh units launched in 2023, as against 4.3 lakh units in 2022. The momentum continued in Q1 of 2024, witnessing record-breaking sales of 1.2 lakh units, clocking a robust 41 per cent YoY growth. New supply has consistently exceeded one lakh units since Q2 of 2022, underscoring persistent demand-supply dynamics in the housing market.
The Real Estate (Regulation & Development) Act, 2016 ( RERA ), was enacted to bring about much-needed reform in India’s real estate sector. After the enactment of RERA, India is ranked 36th in the Global Real Estate Transparency Index in 2022.
With increasing urbanisation, the housing industry is poised for a significant transformation. As per the United Nations, by 2050, half of India’s population is projected to dwell in urban regions, compared to 31 per cent in 2011.
The report states that “Sustainability and technology have emerged as significant disrupters for the real estate sector. Sustainability will influence green construction practices and energy-efficient designs, while technology will revolutionise smart homes and data-driven insights. With more significant environmental concerns, the focus will be on energy-efficient systems, rainwater harvesting and smart building technologies.”
Policy reforms like the Goods and Services Tax, Real Estate ( Regulation and Development ) Act, and the Insolvency and Bankruptcy Code have boosted transparency and investor confidence in real estate.
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