The demand for real estate is emerging not only in tier 1 and tier 2 cities but across the country. File
| Photo Credit: Reuters
Indian real estate market has performed well on strong demand from across the country driven by economic stability and creation of physical infrastructure like roads and metro networks, according to the Economic Survey.
Also read: Economic Survey 2024-25 updates, highlights
The document, which was tabled in Parliament on Friday (January 31, 2025), also highlighted that the real estate law RERA and Goods and Services Tax (GST) have brought many benefits to the real estate sector.
“India’s real estate market witnessed robust performance under office demand as well as residential sales driven by economic stability and positive market sentiment,” the Survey said.
The demand for real estate is emerging not only in tier 1 and tier 2 cities but across the country due to the expansion of metro networks, enhancement to road networks, and improvements in connectivity, it added.
Citing research reports of real estate consultants, the Survey noted that housing demand in India is expected to touch 93 million units by 2036.
“The residential real estate market scaled an 11-year high in sales volume in the first six months of 2024. During this period, total sale across top eight cities recorded an 11 per cent YoY growth,” the document said.
The Real Estate (Regulation and Development) Act, popularly known as RERA, has brought “numerous improvements in the real estate sector, including protection against fraud, increased transparency, timely project deliveries, and measures to prevent misuse of funds, among other benefits”, the Survey said.
After the enactment of the Real Estate Regulatory Authority, India ranked 31st out of 89 countries in the Global Real Estate Transparency Index in 2024, it said.
“GST has helped to simplify the taxation structure in real estate transactions by applying a single unified tax system across states. It has encouraged proper invoicing and documentation, thus reducing the scope for tax evasion,” the Survey said.
The document also noted that the rise of real estate investment trusts (REITs) further amplifies the positive trajectory of the commercial sector.
The government introduced REITs as an investment vehicle in commercial real estate, allowing investors to pool funds and invest in income-generating real estate. This helps increase commercial real estate market liquidity and attracts institutional investors.
“Implementation of online platforms for the submission and approval of building plans has led to a reduction in delays and brought more transparency to the process,” the Survey said.
The digital India land records modernisation programme aims to create a comprehensive, accessible, and transparent land record management system.
Giving an update on the RERA implementation, the Survey said that Rules under the Real Estate (Regulation & Development) Act, 2016 (RERA) have been notified in all States and Union Territories except Nagaland, with various regulatory authorities established.
As of January 6, 2025, about 1.38 lakh real estate projects and 95,987 real estate agents have been registered under the Real Estate Regulatory Authority. Moreover, 1.38 lakh complaints have been disposed of by the RERA across the country.
The Real Estate (Regulation and Development) Act, 2016, was passed by the Rajya Sabha on March 10, 2016, and by the Lok Sabha on March 15, 2016. The was Bill passed by Parliament was assented to by the President on March 25, 2016.
Certain Sections of RERA were notified with effect from May 1, 2016, and the remaining sections from May 1, 2017.
Published – January 31, 2025 03:56 pm IST
