Assessing the Economic Footprint of Indian Real Estate Sector

Iron & Steel, Cement, Bricks, Glass, Sand & Wood are the primary raw materials used in the Real Estate Sector. Consumption of such materials has been projected below for the estimated supply of Real Estate in 2013.  

Total Estimated Real Estate Supply in 2013	3.6 bn sqft
Total Consumtion of Iron & Steel	22 Mn Tonnes
Total Consumption of Cement	140 Mn Tonnes
Total Consumption of Bricks	49,000 Mn bricks
Total Consumption of Glass	1 Mn Tonnes
Total Consumption of Sand	102 Mn cubic meters
Total Consumption of Wood	4 Mn cubic meters

Source: CBRE Research, CREDAI

Economic footprint of Real Estate Sector in 2013

Below, we have mentioned the estimated economic opportunities that would be generated based on the estimated consumption of the above selected construction materials for 2013.

Economic Footprint	Iron & Steel	Cement	Bricks	Glass	Sand	Wood	Others
Potential Revenues (in cr)	103,000	78,000	47,000	34,000	15,000	45,000	48,000
Investment Generated(in cr)	87,000	70,000	18,000	4,000	7,000	35,000	33,000
Direct Employment Generated	157,000	100,000	1,600,000	2,000	105,000	129,000	350,000
Potential Employment generated on the building site during the construction of 3.6 bn sqft in 2013						5,100,000

Source: CBRE Research, CREDAI

Overall Economic Impact of the Real Estate Sector in the year 2013

Assuming industry standards for costs of construction for commercial office, retail and residential assets, following is a broad estimate of the economic footprint of the real estate construction sector in the year

2013.

Total Estimated Real Estate Supply in 2013	3.6 bn sqft
Total Revenue potential of Real Estate Construction in 2013	370,000 crores
Estimated Gross Domestic Product (2013)	5,833,685 crores
Estimated Contribution of Real Estate to GDP in 2013	6.3%
Total Employment generated by sector in 2013	7.6 million people
Total Investment generated by the sector in 2013	254,000 crores

Source: CBRE, CREDAI