Economic Survey Counts Real Estate As One Of The Fastest Moving Sectors
Stating the fact that the slowdown is temporary, finance minister Nirmala Sitharaman tabled the Economic Survey on July 4, 2019, a day ahead of Budget 2019. Highlighting that private investment has been the primary driver of jobs, exports and demand, sustained GDP growth at eight per cent will still be needed for a $5 trillion economy by 2024. The growth projected in FY 2019-20 stands at seven per cent. Real estate, finance and professional service sectors have seen voluminous growth over the year. Its growth stands at 7.4 per cent as against 6.2 per cent in 2017-18.
Here are the highlights of the Economic Survey 2019:
Calling it one of the ‘fastest moving sectors’ in India, the survey anticipates the urban population to grow to 600 million by 2013, as against 377.1 million in 2011. Realising that urbanisation is ‘irreversible’, the Ministry of Housing and Urban Affairs has been vested with a critical role with respect to this growing urban sector and is expected to formulate friendly and efficient policies.
Project delays and related agony among homebuyers also found a mention in the survey, stating that the real estate regulatory authority has been equipped to handle issues across 30 Indian states.
As for Smart Cities, all the 100 cities have been incorporated with Special Purpose Vehicle (SPV), City Level Advisory Forums, project management consultants. “Significant progress has been made with respect to
The implementation of projects pertaining to Integrated Command and Control Centres, Smart Roads, Smart Water, Solar Rooftops, and Vibrant Public Spaces,” states the survey.
For sustained growth, the country will need to develop its industry and infrastructure. Measures such as Real Estate Investment Trusts will pool investment in infrastructure, the survey identifies.
Roads and highways
As opposed to constructing 12 kms per day of roads, 2018-19 saw a significant jump and construction of roads grew to 30 kms per day making the year being highlighted as the ‘Year of Construction’ by the Ministry of Road Transport and Highways. However, the authorities have recognised that funds, time taken to complete the projects, finance for beneficiaries, environmental concerns, time and cost overruns due to delays in projects, etc., have been the major hurdles.
At the same time, “Huge investments have been made in the sector with total investment increasing more than three times from Rs 51,914 crore in 2014-15 to Rs 158,839 crore in 2018-19,” the survey notes.
Housing is among the main contributors of headline inflation but headline inflation has also been declining and has remained below four per cent in the last two years.