Trendmill
Home in on housing industry
4 m jobs expected in real estate sector by 2015

Over four million jobs will be created in India's real estate sector by 2015, by when the demand for lower-income group houses is expected to touch 80 million, according to a recent study.

While there is a shortage of about 20 million low-income dwelling units at present, a study by the Associated Chambers of Commerce and Industry (Assocham), released in New Delhi recently, pointed to this category as one of the major engines to propel national growth.

The current size of the low-income group housing market was roughly $14-15 billion, but would grow to attract an investment of $670 million by 2015, at the rate of $34 billion a year, it said.

The Assocham paper on Real Estate Development estimates that the demand for dwelling units will grow to 90 million by 2020, which would require a minimum investment of $890 billion.

"The housing and real estate sector is the second largest employer, next only to the agriculture and textile sectors." Assocham president Mahendra K. Sanghi said.

"Even now, this sector is considered one of the major engines to propel national growth," he added.

Easy financing and growth of MNCs and Indian companies in the IT, IT-enabled services, BPO and FMCG (fast moving consumer goods) sectors will greatly fuel the demand for housing in the next 10 to 15 years, the study said.

The chamber suggested that the government adopt a multi-pronged strategy, including enabling the sector get access to low-cost institutional funds, as also long term funds, to achieve the projected growth.

It also proposed setting up of real estate mutual funds for the housing sector with tax incentives, as is the practice in most developing economies.

The chamber also called for a regulatory framework for real estate development to encourage public-private partnership for providing basic amenities such as water, sanitation, sewerage, transport and electricity.
— IANS