According to a new report, the real estate output is likely to touch $1 trillion by 2030
New Delhi, NFAPost: The total number of jobs in India’s construction sector is expected to reach 100 million by 2030 from 70.6 million currently, according to a report released.
According to the “Skilled Employment in Construction Sector” report released by property consultancy Knight Frank and the Royal Institution of Chartered Surveyors (RICS) India, the share of skilled workforce in the sector will rise to 10.5 per cent by the end of this decade from 9.7 per cent currently.
Moreover, real estate output is likely to touch $1 trillion by 2030.
“The growth push to the real estate sector is mostly emerging from the residential demand, in addition to commercial, retail, hospitality, and warehousing developments, to cater to demand arising from the growing population,” the report said.
“Owing to the growing demand for real estate and infrastructure, the demand for skilled employees will continue to arise from developers, construction companies, consulting firms etc whereas the supply of the skilled manpower is to be generated from government initiatives, academic and training institutes,” it added.
Moreover, the construction sector has grown at a rate of 11 per cent annually since 2012. Currently, it accounts for 18 per cent of the Indian economy’s total output. Moreover, it is the second-largest employer after agriculture.
Also, between 2011-12 and 2021-22, India’s construction sector attracted a cumulative foreign direct investment (FDI) inflow of $35 billion.
According to Ashwani Awasthi, managing director for South Asia at RICS, the growth in the sector has been driven by increasing income levels, domestic demand, and favourable business conditions, attracting both foreign and domestic investors.
The report also said that for the sector and the economy to grow at an optimum level, more emphasis should be laid on skill development.
“Currently, India has a demographic advantage to cater to the employment needs of the country including the construction sector. However, despite the demographic advantage, the employability of graduates coming from construction-related educational backgrounds has been challenging,” said Shishir Baijal, chairman and managing director at Knight Frank India.
Strengthening of training modules, promotion of global-centric education, collaboration of educational institutes and private companies, and certification with professional bodies were some recommendations mentioned for skill development in the report.
