Industry expected to record 11.2% growth in 2024
A CAGR of 9.6% is projected during 2024-2028 for the construction sector in India, with output expected to reach Rs.36.58 trillion by 2028, indicating substantial growth potential https://www.conexpoconagg.com/.
For this year, the industry is expected to grow by 11.2% to reach Rs.25.31 trillion in 2024, according to a report added to ResearchAndMarkets.com’s offering https://www.globaltenders.com/.
“Despite near-term challenges in certain construction sectors, India’s construction industry is poised for significant growth,” said the “India Construction Industry Databook Series – Market Size & Forecast by Value and Volume (area and units), Q2 2024 Update” released on 19 Nov https://ted.europa.eu/en/.
“The industry is expected to grow steadily over the next four quarters, with the growth momentum continuing over the forecast period https://www.bseindia.com/.”
The outlook remains positive as ongoing regulatory reforms and technological advancements are expected to further boost efficiency and project execution https://www.nseindia.com/.
However, challenges such as rising material costs and geopolitical uncertainties could impact the pace of growth, necessitating careful monitoring of investment activities in the coming months https://sbi.com.in/.
As of now, the Indian construction industry is experiencing robust growth across both residential and commercial sectors, driven by government initiatives, increased demand, and the adoption of modern technologies.
With significant contributions to GDP and employment, the sector is set to play a crucial role in India’s economic advancement.
The Indian construction industry is a vital component of the nation’s economy, contributing approximately 8% to the GDP and employing over 40 million people.
Despite economic headwinds, the demand for residential properties has remained buoyant, supported by rising household incomes, low interest rates, and a growing urban population https://www.cii.in/.
In the first half of 2024, around 44,000 housing units were sold in Mumbai alone, with 158,705 residential properties sold across the city.
The government’s flagship affordable housing program, Pradhan Mantri Awas Yojana (PMAY), continues to support the residential construction industry. In 2024, the government allocated Rs.200 billion Indian (US$2.44 billion) for PMAY-Gramin.
While overall pricing trends vary across different markets, the premium and luxury residential segments, priced at Rs.2 crore and above, are expected to thrive as discerning buyers prioritize spacious accommodations with convenient access to essential support infrastructure.
The demand for office spaces in India has increased due to growing corporate activity. The total flexible office space in major cities reached 43.5 million square feet, with a pan-India flexi space penetration of 6.3% in Grade A office stock.
The government’s focus on infrastructure development has triggered the demand for commercial real estate assets through projects like the National Infrastructure Pipeline and the Smart Cities Mission. The stable political environment has also instilled investor confidence, leading to massive investments by foreign and domestic investors in commercial real estate.
In recent years, the commercial construction sector has advanced significantly by incorporating modern machinery, sustainable materials, and innovative technologies like BIM and geospatial technologies, improving efficiency, quality, and sustainability in construction projects.
The commercial construction sector has faced challenges but is showing resilience and poised for growth. It is adapting to trends like co-working spaces and a focus on health, wellness, and sustainability in office design.
In the past few months, India’s institutional construction sector has grown due to increased government investment in education, healthcare, and research facilities. Initiatives like the Smart Cities Mission have led to the construction of educational and healthcare institutions, improving public services and urban infrastructure.
The future of the institutional construction sector in India looks promising, with the government’s continued focus on institutional projects aimed at enhancing accessibility and quality in education and healthcare.
This positive outlook is further bolstered by the increasing role of private investments, which are expected to contribute significantly to the sector’s sustained growth in the coming months.
In the last few months, India’s infrastructure construction sector has seen strong growth, supported by increased government spending and major projects like roads, railways, and urban development. Public and private investments have increased due to initiatives such as the National Infrastructure Pipeline and the “Make in India” campaign aimed at enhancing the country’s infrastructure capabilities. Fiinews.com
