The Economic Survey noted that housing demand in India is expected to touch 93 mn units by 2036. RERA and GST have brought many benefits to the realty sector
The real estate sector has performed well, driven by strong housing and office demand across the country. According to the Economic Survey, this growth is fueled by economic stability, positive market sentiment, and the expansion of physical infrastructure such as metro networks, roads, and improved connectivity, not just in Tier 1 and Tier 2 cities but nationwide.
The demand for real estate is emerging not only in tier 1 and tier 2 cities but across the country due to the expansion of metro networks, enhancement of road networks, and improvements in connectivity,” the Economic Survey said.
The Survey noted that housing demand in India is expected to touch 93 million units by 2036. The residential real estate market scaled an 11-year high in sales volume in the first six months of 2024. During this period, total sales across the top eight cities recorded an 11 per cent YoY growth," the document said.
RERA & GST
The Economic Survey noted that the real estate laws RERA & GST have brought many benefits to the real estate sector. The Real Estate (Regulation and Development) Act, popularly known as RERA, has brought "numerous improvements in the real estate sector, including protection against fraud, increased transparency, timely project deliveries, and measures to prevent misuse of funds, among other benefits", the Survey said.
After the enactment of the Real Estate Regulatory Authority, India ranked 31st out of 89 countries in the Global Real Estate Transparency Index in 2024, it said.
The Survey noted that the Goods and Services Tax (GST) has helped to simplify the taxation structure in real estate transactions by applying a single unified tax system across states. It has encouraged proper invoicing and documentation, thus reducing the scope for tax evasion.
REITs
The Economic Survey observed that the rise of real estate investment trusts (REITs) further amplifies the positive trajectory of the commercial sector. The government introduced REITs as an investment vehicle in commercial real estate, allowing investors to pool funds and invest in income-generating real estate. This helps increase commercial real estate market liquidity and attracts institutional investors, it noted.
Transparency
Implementation of online platforms for the submission and approval of building plans has led to a reduction in delays and brought more transparency to the process," the survey said. The digital India land records modernization programme aims to create a comprehensive, accessible, and transparent land record management system.
