Real estate sector to be big creator of economic opportunities in 2013: Study

India's real estate sector is estimated to have a total supply pipeline of close to 3.6 billion sq ft lined up for completion in the year 2013, with about 98% of this being concentrated in the residential, said a report prepared by CBRE titled "Assessing the Economic Impact of India's Real Estate Sector".

The report provides a broad view of the extent of economic opportunities generated by the real estate and construction sector in the country. It described the real estate sector as an important component of the construction industry.

Anshuman Magazine, chairman and MD, CBRE South Asia Pvt Ltd, said, "The potential for development and growth in the real estate sector is tremendous. It is expected to generate over 17 million employment opportunities across the country by 2025, thereby making a significant contribution to the GDP. However the industry does require the support and encouragement of policy makers in order to achieve its goals."

Lalit Jain, chairman, Credai and CMD, Kumar Urban Development Ltd added, "The report portrays the conservative status of the sector's contribution. For the first time a detailed attempt has been made to give facts on its importance in terms of GDP, industrial production employment opportunities."

As per the report, the total economic footprint generated by the construction of this real estate pipeline will require a total investment of about Rs 254,000 crore, will help generate revenues worth Rs 370,000 crore, and provide employment to about 7.6 million people across the country in 2013. "The total contribution of the real estate sector to the national GDP has been estimated to be about 6.3% in 2013. Yet, this footprint is restricted by numerous challenges inhibiting the sector such as high borrowing costs, lack of institutional funding, lengthy approval processes and slow and uneven infrastructure development," it said.