Globally, it is unthinkable to see economy growing without the contribution of real estate sector. Hence, real estate is one of the popular sectors globally which comprises housing, retail, hospitality and commercial sub-sectors. Real estate is one of the significant contributors to GDP in India and is the second largest employment generator after agriculture.
Real estate significantly powers and has a cascading effect on the economy due to its backward and forward linkages which impact about 300 sectors of economy. Housing ranks fourth in terms of the multiplier effect on the economy and third amongst 14 major industries in terms of total linkage effect. As per Economic Survey 2011-12, investment in housing and real estate activities can be considered a barometer of growth of the entire economy.1
As a result of the mission and various measures, more than 3 crore houses have been completed as on date. The government is committed to the target of 5 crore houses as it has sharply increased the allocation to Pradhan Mantri Awas Yojana by 66 percent to 79 thousand crores in the Union Budget 2023-24. Pradhan Mantri Awas Yojana is one of the schemes cited by NITI Aayog in its National Multidimensional Poverty Index 2023 report for 135 million Indians exiting multidimensional poverty between 2015-16 and 2019-21. They have stepped into middle class.
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- 1. Considering the economic multiplier effects of real estate especially housing and in an effort to put to action the promise of ensuring every family a pucca house of its own made by BJP in its 2014 manifesto, Pradhan Mantri Awas Yojana – Urban was launched in June 2015 to build 2 crore houses for urban poor and Pradhan Mantri Awas Yojana – Gramin was launched in November 2016 to build 2.95 crore houses for the rural poor. Both the schemes were aimed at Housing for All by 2022 mission. Affordable housing in partnership is one of the components under Pradhan Mantri Awas Yojana – Urban. In order to give fillip to this component, Union Budget 2017-18 announced a number of measures including granting infrastructure status, increasing the time for project completion to affordable housing promoters from 3 to 5 years and refinancing facility by National Housing Bank for individual loans.