Construction in India is estimates to grow at double the pace of global growth and that of even China in the next decade.
According to the Economic Survey 2015-16, the real estate sector constituted 7.4 per cent of
India’s GDP in 2014-15. Both domestic and global slowdown affected the sector, with growth decelerating from 4.4 per cent in 2014-15 to 3.7 per cent in 2015-16.
The urban housing shortage is 19 million units, of which 95.6 per cent is in Lower Income
Group (LIG) and Economically Weaker Section (EWS).
The commercial office space maintained its positive momentum through 2015, led by corporate expansion and consolidation as a result of improving business sentiments. In 2015, about
36 million sq ft. of office space was absorbed, which is second best after 2011. Vacancy level fell from 22 per cent in 2014 to 17 per cent in 2015.
The government declared its vision – ‘Housing for All by 2022’, which encompasses building six crore housing units through public-private partnership model. Of these, about two crore houses would be built in urban regions and rest in rural regions. Initially, the vision would entail housing stock development in 1,049 cities (278 Class I cities) of 22 states.
Budget report on construction 2016-17 KPMG.