With every sixth person moving into a city in the world being a citizen of India, the real estate and construction sector there is expected to be the third largest, globally, by 2030, a report by KPMG claims.
Up to 12 million people are “urbanising” every year in India, a rate surpassed only by China. It means the country will need a sustained building spree that would see more than 75 million people employed in construction by 2022.
As it races to build 110 million extra homes needed, plus necessary transport infrastructure, by 2025 the size of India’s construction market would reach $1 trillion, the third largest in the world, according to KPMG.
The firm expects India to have 77 cities with more than 1 million people by 2030, the biggest being Delhi (pictured) with 36 million.
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The rapid growth of a young urban population at an unprecedented scale could both drive and transform the Indian economy, if managed well.
But to meet the urbanisation challenge and reap the economic benefits, deep reforms are needed in India’s bureaucratic processes, funding and skills development, says the report, which KPMG compiled with India’s National Real Estate Development Council (NAREDCO).
“The world is witnessing urbanisation at an unprecedented pace, which is expected to further accelerate, and India is anticipated to lead this growth,” wrote KPMG’s sector head in India, Neeraj Bansal.
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