Economic Survey: Real Estate Sector Insights and Challenges

The Economic Survey has revealed some startling statistics regarding the real estate sector in India. According to the survey, over 1500 real estate companies were admitted into the insolvency resolution process under the IBC as of March 2024, accounting for 21% of the total admissions. Additionally, one in four cases settled after admission were also from the real estate sector.

The survey also highlighted the challenges faced by the real estate industry, with approximately 4.1 lakh stressed housing units and ₹4.1 lakh crore affected across the country. The Ministry of Housing and Urban Affairs has established a committee to recommend solutions for completing stalled projects to address this issue.

Furthermore, the survey mentioned that the SWAMIH Fund has delivered more than 32,000 homes as of April 2024, with a target of delivering 20,000 homes every year for the next three years. The impact of seamless resolutions and progress of cases under IBC has improved liquidity and balance sheets of banks, enhancing their ability to lend further.

The real estate sector has witnessed a robust recovery after two challenging years of pandemic-induced lockdowns and economic instability. The survey noted that the COVID pandemic has shifted homebuyers’ preferences towards larger, sustainable spaces with additional amenities, driven by remote and hybrid working trends.

Overall, the Economic Survey sheds light on the challenges and opportunities in the real estate sector, emphasizing the need for innovative solutions and collaborative efforts to address the issues faced by the industry.