Page 52 - Construction Vision Dec-Jan 2024 Issue

INDIA'S CONSTRUCTION SECTOR

LEVELS UP AS HOUSING

DEMAND SPURS ECONOMY

f India needed any more proof that it The long-awaited boom - which has Research, an arm of rating agency Fitch.
was in the midst of a huge housing created millions of jobs - comes after
Iboom, it got in this week's GDP data, about six years of debt and pandemic- Builders are bullish long-term with many
heightening expectations that the induced downturn before the construction saying the boom could last two to three
industry will continue to power the sector began improving last year and years and some even more optimistic.
economy for years to come. hitting its stride this year. It has been
driven by rising incomes for many "The housing market could continue to
The construction sector grew 13.3% in Indians, a severe housing shortage in big perform well for another three to four
July-September from a year earlier, up cities and strong population growth. years," Sanjeev Jain, managing director
from 7.9% in the previous quarter and its at Parsvnath Developers, a leading real
best performance in five quarters, the The world's most populous nation had an estate company, noting that India is in the
data released on Thursday showed. urban housing shortage of around 19 initial stages of a housing growth cycle.
million units last year - and that is
That helped India expand at a forecast-
expected to double by 2030, according to Home sales in India's seven largest
beating 7.6%, making it one of the
government estimates. cities, including Mumbai, New Delhi and
world's fastest-growing major economies.
Bangalore, rocketed 36% in the July-
In contrast, Western economies have
"The robust growth in construction has September quarter from a year earlier to
been squeezed by high interest rates and
significantly contributed to the economic more than 112,000 units, despite an 8%-
energy prices, while China has been
growth - and is likely to play the same 18% increase in prices, according to real
hobbled by a debt crisis in its property
role in next couple of quarters," said Sunil estate consultancy Anarock.
sector.
Sinha, an economist at India Ratings and

CONSTRUCTION VISION 50 DECEMBER-JANUARY 2024