Assam: Real estate booming in state, and so are revenues and jobs

‘Size of real estate market in Assam is close to $26 billion’

Staff Reporter

GUWAHATI: The fast-growing real estate sector in Assam has been earning revenues for the government, besides generating job avenues on a large scale in the state.

The RERA (Real Estate Regulatory Authority), Assam, entrusted the AERIDA to conduct a survey on the economic impact of the real estate sector in Assam.

The survey report conducted by AERIDA said that in Assam, especially in Guwahati, the real estate market is experiencing significant growth at an annual rate of 8-10 percent. Guwahati has witnessed urbanization at a rapid scale and become an engine for economic growth and innovation. "It is estimated that the size of the real estate market in Assam is close to $26 billion," the survey report said.

On job generation, the report said, "It is estimated that around 1.84 million jobs were generated in the real estate sector in Assam in 2023."

The report further said, "As the population in Guwahati is expected to surge to approximately 40 lakh by 2045, leading to a potential shortage of 7.50 lakh households, the demand for real estate will continue to rise. This situation creates a robust environment for downstream businesses and allied industries."

On the contribution of the real estate sector to the state GDP (Gross Domestic Product), the report said, "The government earns huge revenue from real estate in the form of stamp duty, registration cost, CGST and SGST on construction materials, CGST and SGST on labour cost, income tax on contractors' profits, GST on flat and apartment sales, labour cess, various fees, levies, and charges by development authorities and urban local bodies and statutory bodies for approvals; and income tax on developers' profits, amongst others."

The report said, "The real estate market in Assam has seen a significant jump in the last decade. This is evident from the result of the National Housing Bank Residex, which is the official Housing Price Index (HPI) undertaken on behalf of the Government of India representing the price change in residential housing property in 50 cities. As of June 2024, taking 2017-18 as the base year, Guwahati was seen to have an HPI of 165, proving it to be one of the fastest-growing real estate markets in the country. This was even higher than the HPI for major metropolitan cities such as Mumbai, Delhi, Bangalore, and Kolkata."

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