While the real estate industry has been facing a huge slow down since the past one year, there have been no significant policy triggers from the government which could energise the industry. An argument against the developers is on the applicability of support by the government to this sector which is in private hands. Let us look at the counter arguments.
a) As per recent study conducted by the National Skill Development Corporation (NSDC), the real estate construction and infrastructure building sectors can add 7.65 crore jobs by year 2022.
b) NSDC had studied 24 sectors of which the real estate industry is most likely to contribute job creation in both skilled and semi-skilled sectors. The study also avers that this sector can absorb the incremental population of skilled people owing to the growing demand from affordable housing, economic activity in tier 2 and 3 cities infrastructure like road, railways, ports, airports etc. and warehousing.
c)This sector is projected to grow to 11.9 lakh crores by 2017. Real estate and construction is the acknowledged second largest employer in India after agriculture and creates approximately 4.5 crore jobs. The NSDC report also points to the long term problem of shortage of talent which could push up the project costs.
In conclusion, should the government provide some policy triggers for this industry ?