Construction

Growth Drivers

  • India has an estimated urban housing shortage of 18.8 Million dwelling units. The housing shortage in rural India is estimated at 47.4 Million units, in 2012.
  • Present levels of urban infrastructure are inadequate to meet the demands of the existing urban population. There is need for re-generation of urban areas in existing cities and the creation of new, inclusive smart cities to meet the demands of increasing population and migration from rural to urban areas. Future cities of India will require smart real estate and urban infrastructure.
  • The Government of India is in the process of launching a new urban development mission. This will help develop 500 cities, which include cities with a population of more than 100,000 and some cities of religious and tourist importance. These cities will be supported and encouraged to harness private capital and expertise through Public Private Partnerships (PPPs), to holster their infrastructure and services in the next 10 years.
  • To provide quality urban services on a sustainable basis in Indian cities, the need of the hour is that urban local bodies (ULBs) enter into partnership agreements with foreign players, either through joint ventures, private sector partners or through other models.

Reasons to Invest

  • Construction sector in India will remain buoyant due to increased demand from real estate and infrastructure projects.
  • An investment of USD 1 Trillion has been projected for the infrastructure sector until 2017, 40% of which is to be funded by the private sector. 45% of infrastructure investment will be funnelled into construction activity and 20% set to modernise the construction industry.
  • Construction activities contribute more than 8% of India’s GDP.
  • USD 650 Billion will be required for urban infrastructure over the next 20 years.
  • Some of the large government projects offer significant up-side thrust.
  • 70% of the funding under SBM will be mobilised largely from private sector.
Construction

Foreign investors

HINES
VEOLIA
TISHMAN SPEYER
ALSTOM
EMAAR