The Indian economy has witnessed stagnant growth but in recent times it has picked up again. According to experts, it's projected to grow at 6-7% per annum even in this gloomy situation. It is noteworthy to know that few sectors play an essential role in the development of GDP. And one such sector is the Real estate sector. Real estate is the second largest growing segment and one of the biggest contributors to the Indian GDP.

There are many reasons for the unprecedented and constant growth of the Real estate sector in these trying times. Some of these are attributed to outside as well as inside factors. The outside factors are:

  • High demand- Most of the demand is coming from the middle class and higher middle-class section. They are planning to invest for the long term in real estate and are first time buyers. And they are long term buyers and more and more have started buying homes after the pandemic. This trend is visible in major Indian cities like Delhi and Mumbai. But slowly it’s also becoming a popular trend in small cities like Nagpur and Baroda. This has made GDP stronger than before.

  • Second-home- Today many people are opting to buy second homes. This has led to more buildings made in Midcap cities like Pune and Alibaug. It is giving employment in small cities making them a part of the new growth story.

  • More construction- Today more and more buildings are being built leading to the consumption of more raw materials like cement. This too has led to more production of cement and contributes to the growth of GDP.

  • Government intervention- Ultimately, the Government plans have led to a sudden boom in the real estate sector. This in turn has increased

the confidence of builders hence they are making more buildings. This can cater to the demand of every Indian.

  • More construction- Today many office complexes and malls are being built both in urban and semi-urban cities. It is an encouraging sign making it the visible difference between the past 10 years.

It is not wrong to assume that Real estate will grow at a much more rigorous pace in the coming years. Imminent economists project that real estate will contribute to 13% of India’s GDP in the coming year. It is an encouraging sign for someone looking to make a foray into the real estate sector. Hence Shravan Gupta believes that real potential lies in the real estate sector. And there is bound to be a new growth story in terms of the GDP.