India’s stupendous economic
growth in the first decade of the 21st Century stands challenged in today’s
day. From a 10.5% GDP in Q4 of FY 2005- 06 down to 4.8% to FY 2012- 13 has had tremendous
impact, not just on the actual market scenario but on the sentiments of the
economy. Most major contributors performing below expectation including primary
and secondary sectors and devaluation of the Rupee against dollar have also
compounded the situation.
Within the real estate sector,
housing is one of the few sectors of the country that is nearly completely
dependent on the domestic demand and the real estate sector can prove to be a
blessing for Indian economy as it has been contributing around 5-6% share of
the nation’s GDP each year. With majority of the sectors growth coming from the
residential development, the potential demand for real estate in India can only
go northwards given the current estimate of its population growth.
The housing demand boosts
numerous other industries involved in manufacturing of cement, steel, iron,
glass, electrical and electronic goods, paints and chemicals, wooden goods,
plumbing goods, etc. and economic activities such as mining, brick making, sand
collection, timber-related, amongst many others. As per the National Housing
Bank, the sector ranks fourth in multiplier effect and total housing loans
would add up to only 7% of the GDP, far lower than levels in most developed
countries across the world.
As per Cushman & Wakefield,
based on past population growth trends alone, India will need additional urban
housing of approximately 12.8 units in the next five years (2013 – 17) at an
estimated building cost of approximately INR 13 - 19 trillion, clearly indicating
the size and potential of Indian real estate market. Thus the potential of the
Real Estate sector to create a positive and wide spread impact on the growth of
the Indian economy should be recognized and encouraged at all levels. In
keeping with this backdrop, CREDAI &
Cushman & Wakefield feels that the Housing sector can be the ‘Real Game Changer’ in leading India’s
GDP growth back on its double digit path. Should the sector be given its
correct fillip through governmental and policy decisions, the sector could as
well prove to be the growth propeller for the country.
In this conclave 2013, CREDAI and
Cushman & Wakefield, seek to understand how the potential of the housing
sector can be maximized to ensure it contributes to its best capabilities
towards the country’s economic growth. The specially designed sessions will
bring together the stalwarts of the industry and economy in general who will
help the industry stake holders to understand and help them chart out a
brighter future for the sector. It will also take a look at a few examples from
across the world where housing has performed to much greater potential.
‘Housing – The Game Changer: leading to double digit growth’ is set to be a
forum with a mission increase the potential of the housing sector.
Fore more information, please visit- www.credai.org
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