Real estate adds Rs 1 lakh cr to Delhi's GDP in FY11

Real estate services added over Rs one lakh crore to Delhi's GDP of Rs 2.58 lakh crore in FY11, emerging as top contributors to the city's economy and reflecting the rapid growth and buoyancy in the sector.

The real estate sector, which includes property brokers, home buyers, land owners, property owners and housing finance institutions, contributed 39.69% to the gross state domestic product (GSDP) of the city at current prices, according to latest Delhi Government statistics.

The contribution of the sector has gone up to Rs 1.02 lakh crore in FY11 compared to Rs 35,885 crore in FY05, registering annual compound growth of 19.16% in the last six years.

According to global real estate consultant Jones Lang LaSalle, the sector will witness further growth with most companies operating in the city firming up expansion plans or executing real estate growth plans with upswing in the economy.

Reflecting the buoyancy in the sector, it said overall Delhi and National Capital Region witnessed a net absorption of 1.63 million sq ft of property space (151,755 square metre) in first quarter of the year.

The significant performance by the sector has largely been attributed to increased demand for commercial property by companies for office space and business activities leading to robust rental growth.

"The sector has potential to grow further provided the city government and the Centre relax certain norms for use of land for property development," said Pradeep Jain, chairman of Confederation of Real Estate Developers' Association of India (Credai).

As per Delhi government data, the contribution of the tertiary sector comprising hotels, restaurants, banking, insurance, legal services, real estate at current prices was Rs 2.12 lakh crore in FY11, which is 82.27% of the GSDP.

In FY11, the contribution to GSDP by hotels and restaurants and related trade was estimated at Rs 48,413 crore, which was around 18.71% of the total GSDP of the city.

According to figures, share of primary sector comprising agriculture, livestock and forestry to GSDP in FY10 and FY11 has decreased by 0.72% and 0.61% at current prices.

Further, the contribution of secondary sector comprising manufacturing and construction has decreased from 18.45% during the base year FY05 to 17.44% and 17.11% in FY10 and FY11 respectively.

At Rs 2.58 lakh crore, the gross state domestic product of the city went up by an impressive 10.53%, increasing from 10.28% in the previous fiscal.

Delhi's GSDP in FY10 was Rs 2.18 lakh crore.

As per the statistics, the per capita annual income in the national capital has increased by 7.68% to Rs 95,943 in FY11, which is almost three times the national average.

The per capita income of an average person in FY10 at constant prices was Rs. 89,037, according to a report released by Delhi Chief Minister Sheila Dikshit, who also holds the finance portfolio.

Delhi has a population of 1.67 crore, according to the latest Census.

On a monthly basis an average Delhiite earned Rs 7,995.25 in FY11 against the national average of Rs 3,000 as per the advance and quick estimates based on constant prices, which reflects data factoring in inflation.

However, on the current prices, without factoring in inflation, the per capita income of Delhi worked out to Rs 1.35 lakh as compared to national average of Rs 54,527.

In FY10, the per capita income of the city at current prices was Rs 1.17 lakh and it occupied the third position after Goa and Chandigarh, where the per capita income was Rs 1.32 lakh and Rs 1.20 lakh respectively.