New Delhi. In India, the real estate sector is the second largest job provider after the agriculture sector. During the last 10 years, the Narendra Modi government has built more than 4 crore houses for the poor under the Pradhan Mantri Awas Yojana (PMAY).

Today (Sunday, June 9), Modi will take oath as Prime Minister for the third consecutive time. In such a situation, the real estate sector has a lot of expectations from PM Modi. In the interim budget presented by Finance Minister Nirmala Sitharaman, the affordable housing sector got a big boost as more than 2 crore houses were added under the flagship scheme PMAY-Urban.

Demand in the real estate industry

Experts estimate that the country's real estate market will be worth Rs 65,000 crore by 2040. In such a situation, the industry says that they will need continued support from the government to maintain their growth pace.

Niranjan Hiranandani, chairman of the National Real Estate Development Council (NAREDCO), says, "There is a need for radical changes in policies and schemes to boost economic performance indicators. PMAY also needs to be promoted continuously. The government should make taxes and GST more rational."

He said that reducing the cost of things like approval, development premium and stamp duty will also boost the real estate industry. Hiranandani stressed that if the project has to be completed on time, unnecessary hurdles in land and financial approvals must be removed.

Industry experts are constantly demanding the government to give impetus to the real estate sector. One of the important demands is related to the reform of GST. CBRE Chairman and CEO Anshuman Magazine said, 'The government should consider reducing the cost of raw materials used in construction. Also, the definition of affordable housing needs to be redefined. The cost of construction including raw materials and labor has increased significantly and affordable housing should be re-evaluated accordingly.'

In the Union Budget 2023-24, the Finance Ministry announced Rs 79,000 crore ($9.64 billion) for the Pradhan Mantri Awas Yojana. This was an increase of 66 per cent from a year ago.

Real estate sector is growing

India's retail, hospitality and commercial real estate sectors are also expanding rapidly. All of these provide vital infrastructure to meet the country's growing needs. Home sales in India's residential property market reached an all-time high of Rs 3.47 lakh crore in FY23. It grew 48 per cent year-on-year. At the same time, sales volume also registered a strong growth. It grew 36 per cent year-on-year and a total of 3,79,095 units were sold.

Investment will increase due to SEBI's decision

The Securities and Exchange Board of India (SEBI) has also recently given its approval for the Real Estate Investment Trust (REIT) platform, which will allow all types of investors to invest in the Indian real estate market. This is estimated to bring in investments worth Rs 1.25 trillion in the Indian market in the coming years.