The Central Government should officially recognise the real estate sector as a key economic sector, given its significant contribution to India’s economic growth and employment generation, said CREDAI President-Elect Gummi Ram Reddy. He said the sector should not be viewed merely in terms of housing construction and sales, but also for its strong linkages with several allied industries and its large employment ecosystem.
Reddy made these remarks during CREDAI NATCON 2026 in Kolkata.
He noted that the impact of real estate activity extends far beyond construction. Several sectors, including cement, steel, paints, tiles, sanitary products, electrical equipment, furniture, architecture, engineering, banking and financial services, are directly or indirectly linked to real estate. Therefore, growth in real estate has a multiplier effect across allied industries, while a slowdown can also have a wider economic impact.
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$1-Trillion Real Estate Market by 2030
According to the latest report released at CREDAI NATCON, India’s real estate market is projected to grow from around *$600 billion in 2025 to $1 trillion by 2030*. Urbanisation, rising incomes, housing demand, growing requirements for commercial spaces and the expansion of global companies are expected to be key drivers of this growth.
Meanwhile, a joint CREDAI–ANAROCK report revealed that the value of residential projects under construction across India reached *$430 billion in 2025, nearly double the *$235 billion recorded in 2019**.
Employment generation is another major reason behind CREDAI’s demand for official recognition of the sector. From construction workers and engineers to architects, project managers, sales professionals, financial experts, legal consultants and property management staff, millions of jobs are directly or indirectly linked to real estate.
Real estate projects also contribute to local infrastructure development, including roads, transportation, electricity, water supply and commercial activity. This creates a wider economic ecosystem around individual projects, Reddy said.
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Vision 2047
With India targeting developed-nation status by 2047, the role of real estate is expected to become even more important, Reddy said. Rapid urbanisation will create greater demand for homes, offices, commercial developments and supporting infrastructure.
He stressed the need to treat real estate as a key component of India’s long-term economic planning.
Reddy also pointed to significant regulatory changes in the sector in recent years. The implementation of the *Real Estate (Regulation and Development) Act (RERA)* and GST has improved transparency and accountability among developers, he said.
Going forward, consumer confidence, quality and timely project delivery will become increasingly important.
The growing presence of *Global Capability Centres (GCCs)* across India is also creating new opportunities for the real estate sector, he added.