Road Ahead for Construction Finance
Real Estate and infrastructure are the major drivers of the economy with their significant contribution to the country’s GDP. As such, the construction finance is critical to ensure that real estate and infrastructure development face no hurdles.
Vinod Behl
The Real Estate sector is expected to reach $1 trillion in market size by 2030, up from $200 billion in 2021. It will contribute 10% to the country’s GDP by 2025 and 13% by 2030, against the current GDP contribution of 7%. The Construction sector that employs over 30 million people and creates assets worth over $200 billion, contributes more than 5% to the nation’s GDP and 78% to gross capital formation. With India’s urban population rising to 42% of the overall population by 2030, the housing sector alone needs more than $100 billion of investment over the next 7-10 years. With demand from other asset classes including office, warehousing, retail and hospitality, the total requirement is almost $130 billion. The country’s infrastructure sector needs $1.4 trillion of funding for infrastructure during 2020-25 to ensure that India becomes a 5 trillion economy.
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NBM&CW February 2022
