GDP Growth to Boost Property Demand: Real Estate Industry Optimistic

New Delhi, Aug 30 (PTI) Real estate bodies CREDAI and NAREDCO have expressed optimism about the property market following the strong economic growth in the June quarter. The Q1 GDP growth of 7.8% is expected to boost consumer confidence and increase demand for both residential and commercial properties.

"The strong GDP growth of 7.8 per cent demonstrates the resilience and potential of our economy. This positive momentum is encouraging for the real estate sector and will boost investor and consumer confidence," said CREDAI National President Shekhar Patel.

Patel added that the industry is looking forward to proposed GST reforms, which will further stimulate demand. The real estate sector has been experiencing a resurgence in housing sales over the past few years, with a sharp increase during the 2022-24 calendar years. However, the demand slowed down in the first half of 2025 due to a significant rise in prices post-COVID pandemic.

NAREDCO President G Hari Babu also expressed optimism, stating that the strong GDP growth is a positive sign for the real estate sector. "This growth will boost demand, especially during the upcoming festive season," he noted.

The real estate market has been navigating through various challenges, including economic fluctuations and regulatory changes. Despite these hurdles, the sector remains resilient, driven by the growing urban population and the need for affordable housing. The proposed reforms and the positive economic outlook are expected to provide a much-needed boost to the industry.

CREDAI and NAREDCO are two prominent real estate bodies in India, representing the interests of developers and builders. CREDAI, the Confederation of Real Estate Developers' Associations of India, is a national-level organization that aims to promote the growth and development of the real estate sector. NAREDCO, the National Real Estate Development Council, is another key player that works towards the betterment of the industry through advocacy and policy recommendations.

The upcoming festive season is traditionally a period of high demand for property purchases, and the positive GDP figures are expected to further enhance this trend. Both organizations are calling for a continued focus on policy reforms and infrastructure development to sustain the growth momentum in the real estate sector.

In conclusion, the strong Q1 GDP growth of 7.8% is a significant positive indicator for the real estate market. With the support of favorable policies and reforms, the industry is poised for a robust recovery and sustained growth in the coming months.