Despite facing numerous challenges, the real estate sector in the country is continuing to perform encouragingly, according to the 2023-24 Economic Survey. It detailed that the housing industry has become crucial due to increasing urbanization.
According to United Nations estimates, by 2050, half of India’s population will reside in urban areas, up from 31% in 2011. The survey emphasized the need for appropriate strategies and actions to meet this demand. In 2023, housing sales surpassed a decade-high, with 410,000 homes sold in the country’s eight major cities. New supply also reached an all-time high, increasing from 430,000 homes in 2022 to 520,000 in 2023. The first quarter of 2024 saw a strong performance in housing sales, with 120,000 homes sold, marking a 41% increase year-over-year.
On the other hand, the growing home loan sector reflects real estate demand. In the fiscal year 2012, home loans accounted for 6.6% of the country’s GDP, which increased to 11.2% in 2024. The survey also noted that stalled projects have become a challenge, with 410,000 units across the country affecting Rs 4.1 lakh crore. To address this issue, the Ministry of Housing and Urban Affairs has formed a committee to suggest solutions for completing these stalled projects, highlighting fund shortages as a major problem.
