Real Estate sector in India is a Rs. 2,375.61 billion industry. It is the second largest sector in terms of employment and engaging of human resources. It is linked to about 250 ancillary industries like cement, brick and steel through backward and forward linkages. Rs. 1,118.06 billion investment will be required over the next five years in urban housing.
A study by a credit rating agency ICRA shows that the construction industry ranks third among the 14 major sectors in terms of direct, indirect and induced effects in all sectors of the Indian economy. A unit increase in expenditure in the real estate sector can generate a fivefold increase in income.
The revamped sector would definitely experience a boom again and it is envisaged that the value of the real estate sector in India would grow to over US$100 billion in the next 10 years with improved stock of housing loans and mortgage penetration, reduction of risks for venture capitalists and private equity firms and rationalization of the real estate regime.