The size of the urban sector will double in the next 25 years, said Kuldip Narayan, Joint Secretary, Union Ministry of Housing and Urban Affairs on Tuesday.
Speaking at the 16th FICCI real estate summit, he said that the requirements for facilities, residential spaces, commercial spaces and urban infrastructure would double. "we have a lot of catching up to do in infrastructure," he added.
With increasing urbanisation from 12 to 30 per cent, the next 20 years could see more development than in the last 50 years, he added.
Narayan also alluded to changes in construction technologies and highlighted the government's "consistent stand on reducing carbon emissions and improving energy efficiency" and encouraging the industry to "adopt better and resource-efficient construction technology."
While talking about Credit Linked Subsidy Scheme (CLSS), he said it became so popular that out of a total portfolio of about 30 lakh crore, almost five lakh crore is funded or some subsidies given in some part under CLSS.
"When we compare it to all interests subvention schemes earlier to CLSS, the number of beneficiaries works out to be almost 2000 times. Almost 55,000 Crore interest subsidy was given to loan accounts that we have just finished," he said.
"After consecutive years of slowdown in the sector, last year witnessed unprecedented growth by reaching a new historical height in the commercial office segment," said Raj Menda, Joint Chairman, FICCI Real Estate Committee and Corporate Chairman, RMZ Corp.
He added that "the extraordinary demand of flex space from medium and large enterprises further propelled the sector growth".
Menda underlined that 2023 would see more significant developer activity to improve building efficiency, design adequacy and sustainability criteria. "The demand for Grade A premium office assets is likely to increase to 1.2 billion sq. ft. by 2030 in India", he added.