India is set to witness a housing boom worth $1.3 trillion, and it would CHANGE the economy like never before

On one hand where India has world’s most expensive residential house, it is also home to several slums and alarming number of homeless people, on the other.

It is this unhoused sector that might trigger the next big change in India’s economic growth.

Also read: Housing approvals will soon come within 60 days in Delhi and Mumbai

In June 2015, Prime Minister Narendra Modi had announced his ambitious plan to provide ‘ Housing for All’ by 2022, a program which aims to construct 20 million homes across the country. This boost in realty sector will set the stage for investment worth $1.3 trillion in housing sector, CLSA India Pvt Ltd told Bloomberg.

The investment banking firm expects that between 2018 and 2024, India would be building 60 million new homes, while also creating about 2 million jobs annually. These changes would increase the country’s GDP by as much as 75 basis points.

Prior to government’s demonetisation move, India's affordable housing was growing the fastest, but experienced a slump after almost 86% of the nation’s currency was banned on November 9 th. However, the industry has started showing signs of recovery.

Modi government has already granted affordable-housing builders an "infrastructure status," thus making them eligible for state incentives, subsidies, tax benefits and institutional funding.

This, accompanied by a drop in mortgage rates and stable prices in comparison to increase in per-capita incomes, means that the realty sector is readying itself to welcome the next big change in the country’s economy.

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