If India needed any more evidence that it is in the midst of a massive housing boom, it got GDP data this week that boosted expectations that the industry will continue to grow the economy in the coming years.
The construction sector grew by 13.3% year-on-year in July-September, compared with 7.9% in the previous quarter and the best result in five quarters.
This helped India grow at a better than expected 7.6%, making it one of the fastest growing economies in the world. On the other hand, Western economies were pressured by high interest rates and energy prices, while China was hit by a debt crisis in the real estate sector.
The long-awaited boom, which created millions of jobs, comes after about six years of debt and a pandemic-induced slump before the construction sector began to recover last year and hit its stride this year. This was caused by rising incomes for many Indians, harsh housing conditions in large cities and strong population growth.
The urban housing shortage in the world's most populous country was about 19 million units last year - and is expected to double by 2030, according to government estimates. Strong growth in construction has had a significant impact on economic growth - and is likely to play the same role in future quarters, said Sunil Sinha.
Builders are bullish on the long term, with many saying the boom could last two to three years, and some even more optimistic.
The housing market can work well for another three or four years, Sanjeev Jain, CEO of Parsvnath Developers, a leading real estate firm, points out that India is in the early stages of a housing growth cycle
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