The real estate sector has become one of the most globally recognized industries, undergoing a remarkable transformation over the past decade. Emerging as the second-highest employment generator after agriculture, this growth is vividly documented in the recent report, "Real Estate Unboxed: The Modi Effect," by Anarock-NAREDCO. The report emphasizes how the Indian residential real estate market has thrived under several reforms by the Modi-led government, strengthening the industry and enabling it to reach unprecedented heights.
According to the report, employment in real estate surged to 71 million in the past year from 40 million in 2013. This growth has been driven by robust performance in the housing sector, bolstered by several central government policy reforms. The real estate sector now accounts for more than 18% of the total workforce in India, underscoring its unparalleled contribution to job creation. Spanning a wide array of roles—from construction workers to high-level management positions—the sector has become a significant employment generator. Notably, the construction segment employs a substantial portion of this workforce, reflecting the industry's extensive reach and impact.
Several factors have contributed to this employment upsurge. The government's focus on affordable housing schemes, infrastructure development, and urbanization projects has fuelled demand for both skilled and unskilled labor. Initiatives like the Pradhan Mantri Awas Yojana (PMAY) and the Smart Cities Mission have not only provided housing but also created numerous job opportunities. Additionally, profound policy and regulatory reforms such as RERA and GST have reshaped the real estate landscape in India over the past ten years.
The economic impact of the real estate sector extends beyond job creation. It stimulates allied industries such as cement, steel, and building materials, fostering a multiplier effect on the economy. As urbanization continues and the demand for housing and commercial spaces rises, the sector is poised for further expansion. The report notes that 71 million people were employed in the real estate sector in 2023, compared to 40 million in 2013, a testament to its rapid growth.
Looking ahead, the report projects that employment in the sector will continue to grow multifold in the coming years. Currently, over 18% of India's workforce is employed in real estate, a vital component of the country's economy connected to over 250 ancillary businesses. Factors like strong demand, supportive government policies, and increased investor confidence are expected to further propel growth in this dynamic sector.
The future outlook for real estate is positive, with expectations that it will continue to be a major employment driver. The focus on sustainable development and smart infrastructure is likely to create more opportunities, emphasizing the sector's critical role in shaping India's economic future. The creation of over 31 million jobs in the last decade highlights the transformative power of the real estate sector in India. As the nation progresses, the sector's role in generating employment and driving economic growth cannot be overstated.
