The International Monetary Fund (IMF) in its latest World Economic Outlook projected India's economic growth to accelerate to 7.4% in 2018-19 and touch 8.2% by 2023-24. A recent Reuters poll also showed that India will claim the top spot among the world's fastest-growing major economies this year, thereby giving impetus to the the projections made by the IMF.

In India, real estate sector is the second largest employer after agriculture. A joint report released by CREDAI and CBRE, assessed the economic impact of Indian real estate and stated that the potential employment opportunities in this sector are expected at 17.2 million jobs by 2025. This will also have a cascading effect on about 250 ancillary industries, that are dependent on the real estate industry.

The Indian Real Estate market is expected to touch USD 180 billion by 2020. The economic contribution of the real estate sector to the country's GDP is projected to reach 13% in 2025.

India's rank in the Global House Pricing Index has jumped 13 spots to reach the ninth position among 55 international markets, on the back of increasing prices in the mainstream residential sector. The housing sector is expected to contribute around 11% to India's GDP by 2020, as per the India Brand Equity Fund (IBEF) report dated March 2018. It is also expected that this sector will incur more non-resident Indian investments in both the short term and the long term.

Recent government reforms, like the implementation of the Goods and Services Tax (GST) and the Real Estate Regulation and Development Act (RERA) are proving to be beneficial for the economy.

India has witnessed an improvement in various international ratings. For example, the debt rating agency Moody's upgraded India's sovereign credit rating for the first time in 14 years, while India's ranking in the World Bank's 'Ease of doing business' index has jumped to 100 in 2017 from 130 in 2016.

As per Colliers Research; India has seen a significant jump of 85% in property Investments in the first nine months of 2017 as compared to the same period last year.

The unprecedented growth in the Indian industrial real estate sector is fueled by two important reasons. First, the fast expansion of the Indian industrial sector has created a large demand for manufacturing and office buildings. Second, the liberalization policies of the government of India have simplified the investment process and thus opened the doors for foreign investment in the real estate sector of India.

Increasing urbanization, demand for new housing and the expanding urban fabric of tier II and tier III cities in the country are also important drivers for real estate growth.

In the long term, growth in the Indian Real Estate industry is expected to be driven by rise in infrastructure spending by the Government of India. The Smart City initiative and the Affordable Housing scheme by the government are two major focal points for the government at present. The government has also released draft guidelines for investments by Real Estate Investment Trusts (REITs) in the non-residential segment.

All of these steps will help achieve the GDP share of Real Estate sector in the Indian Economy.