India is expected to become the third largest construction market in the world by 2025. 11.5 million homes a year are expected to be added making it a US$ 1 trillion a year market. In fact, China, India and US are expected to account for almost 60 per cent of all global growth in the sector by 2025. Almost 52 per cent of all construction activity is already taking place in the emerging markets, which is set to reach 63 per cent by 2025.
India is forecast to overtake Japan as the third largest construction market in the world with annual growth averaging 7.4 per cent annually. The construction industry in India registered a growth of 5.9 per cent in fiscal year 2012-13.
It is interesting to note that the real estate sector is expected to account for 43 per cent of the construction spend in India till 2016 aggregating approximately US$ 380 billion. The sector is a significant contributor to the GDP of the nation (8 per cent in fiscal year 2011-12) and amongst the largest employment generator (employing over 33 million people). The sector has witnessed a housing boom in the recent years. In fact, experts are of a view that once the phase of global financial volatility passes, the construction sector in India could be amongst the fastest growing in the country.