The real estate sector plays a pivotal role in creating opportunities for construction projects.
Santhosh Kumar
Vice Chairman, ANAROCK Group
How do you assess India’s construction industry growth over the years?
India's construction industry has witnessed remarkable growth over the years, driven by factors such as rapid urbanization, economic development, and government infrastructure initiatives. The sector is a significant driver of economic growth, contributing 9% to the GDP. The Indian construction sector is poised to expand significantly, reaching a value of $1.4 trillion by 2025. This vast industry encompasses over 250 sub-sectors with linkages across sectors.
What is the role of real estate sector and urbanisation in the growth of Indian construction industry?
As cities expand and populations grow, there is a rising demand for housing, commercial spaces, and infrastructure. The real estate sector plays a pivotal role in meeting this demand, creating opportunities for construction projects. Urbanization, in turn, drives the need for new developments, such as transportation networks, utilities, and public facilities, further stimulating the construction industry.
How do you look at the new opportunities for builders and developers?
India's real estate market is poised for significant growth in the coming years, driven by several key factors:
Urbanization and economic growth: The country's rapid urbanization, coupled with robust economic growth, is fuelling demand for housing and commercial spaces.
Infrastructure development: Government initiatives to improve infrastructure, such as transportation and connectivity, are creating new opportunities for real estate development.
Rising disposable income: As incomes increase, more people are able to afford their own homes or invest in real estate.
Favourable government policies: Government policies like affordable housing schemes and tax incentives are stimulating demand and encouraging investment in the real estate sector.
These factors present a wealth of opportunities for builders and developers to capitalize on the growing market. By understanding market trends, adapting to changing consumer preferences, and leveraging technological advancements, builders and developers can position themselves for long-term success in India's real estate sector.
What is your vision on India as the third construction market globally?
The country's vast population, coupled with rapid urbanization and infrastructure development initiatives, have created a massive demand for construction industry.
However, to maintain this momentum, India needs to address several challenges. These include improving the efficiency of land acquisition processes, streamlining regulatory approvals, and investing in skilled labour. By addressing these issues, India can further strengthen its position as a global construction powerhouse and contribute significantly to its economic growth.
What is your outlook on the Indian real estate market in 2025?
India's real estate market is expected to remain robust in 2025. Factors such as continued urbanization, infrastructure development, and favourable government policies will drive real estate demand. However, challenges like rising interest rates and global economic uncertainties may impact the market to some extent.
