India’s Real Estate Sector Expands: 1.38 Lakh Projects Registered Under RERA, PMAY-U 2.0 Targets One Crore Homes
The Economic Survey 2024-25, presented in Parliament by Finance Minister Nirmala Sitharaman, highlights a major expansion in India’s real estate sector, with 1.38 lakh real estate projects and 95,987 real estate agents registered under the Real Estate (Regulation and Development) Act (RERA) as of January 6, 2025. The report also indicates significant progress in housing development under Pradhan Mantri Awas Yojana (PMAY) and major financial resolutions under the Insolvency and Bankruptcy Code (IBC).
RERA Strengthens Regulatory Oversight
Since its inception, RERA has played a pivotal role in bringing transparency to the real estate sector. According to the survey, 1.38 lakh complaints have been resolved under RERA across the country, reinforcing the government’s commitment to consumer protection and faster dispute resolution. The steady rise in project registrations indicates growing confidence among homebuyers and developers in the regulatory framework.
PMAY-U 2.0 Expands Housing for All Initiative
The government’s flagship affordable housing scheme, Pradhan Mantri Awas Yojana-Urban (PMAY-U) 2.0, was launched in September 2024 to provide housing assistance to an additional one crore households. As of November 25, 2024, the scheme has:
- Sanctioned 1.18 crore houses
- Grounded 1.14 crore houses for construction
- Completed over 89 lakh homes
Furthermore, 29 states and Union Territories have signed agreements to implement PMAY-U 2.0, and approvals for six lakh new homes have already been granted under the scheme in FY25.
PMAY-Gramin Extension to Cover Rural Housing Needs
The rural counterpart of the scheme, PMAY-Gramin (PMAY-G), has made significant strides, with 2.69 crore houses completed since 2016. The scheme has now been extended to build an additional two crore rural houses by 2029, addressing the rising demand for affordable housing in remote areas.
IBC Resolutions Recover Rs 3.6 Lakh Crore
The Insolvency and Bankruptcy Code (IBC) continues to be a crucial tool in reviving distressed real estate projects and businesses. As of September 2024, 1,068 resolution plans have been approved, resulting in creditors recovering Rs 3.6 lakh crore, which is 161% of the liquidation value and 86.1% of the fair value of assets.
Despite these improvements, creditors still faced an average haircut of 69% on admitted claims. Notably, 79 corporate debtors were resolved as going concerns, ensuring business continuity while addressing financial liabilities.
Government Push for Business-Friendly Reforms
The survey underscores ongoing governance and regulatory reforms aimed at improving the ease of doing business. Several states have taken proactive measures:
- Haryana and Tamil Nadu have amended their building regulations 12 times in the past decade to streamline construction approvals.
- Punjab has eased compliance by simplifying building, labor, and fire regulations based on industry feedback.
Such reforms are expected to reduce project delays, lower compliance costs, and attract further investments into the real estate sector.
India Retains Position as World’s Second-Largest Cement Producer
The Indian cement industry, a key driver of real estate and infrastructure, remains the second-largest globally, following China. The country’s 159 large cement plants, 128 grinding units, five clinkerization units, and 62 mini plants have a combined installed capacity of 639 million tonnes, producing 427 million tonnes of cement in FY24.
Despite this, India’s per capita cement consumption (290 kg) remains below the global average of 540 kg, highlighting significant growth potential. With large-scale infrastructure projects and housing expansion, cement demand is expected to surge in the coming years.
GDP Growth at 5.4%; Forex Reserves Strengthen
India’s economy recorded 5.4% real GDP growth in the July-September quarter of FY25, lower than the RBI’s projection of 7%. However, India’s overall GDP expanded by 8.2% in FY24, reflecting steady economic momentum.
Foreign exchange reserves stood at $640.3 billion as of December 2024, covering 90% of India’s external debt of $711.8 billion. This robust reserve position provides a strong financial buffer against global uncertainties.
Real Estate Market Outlook
With RERA ensuring greater transparency, PMAY driving housing expansion, and IBC supporting financial recoveries, India's real estate sector remains a key pillar of economic growth. The government’s continued focus on infrastructure, urbanization, and regulatory reforms is expected to fuel further investments and development in the sector.
As demand for housing, commercial spaces, and industrial projects continues to grow, the real estate industry is poised for sustained expansion in the coming years.