India's construction sector is forecast to grow at 7- 8% each year over the next decade following the election of a new government, according to report by PwC.
 
The country will see increased economic growth and the removal of barriers to foreign investment that will spur demand for construction over the coming 12 to 18 months, the report added.
 
"With a new government having been formed at the centre, with a strong mandate to stimulate economic growth, the outlook for the sector appears positive," it said.
 
An estimated USD1 trillion is being spent on infrastructure over the five years to 2017 and there is increased investment in industrial projects by the government but it is the private housing sector that the PwC report highlights as a key growth area.
 
It said, "Demand for real estate has been one of the drivers of construction sector growth over the last 10 year. Improvement in economic conditions has the potential to drive demand for real estate, as housing continues to be a favoured investment asset among Indian households."
 
The total construction market in India for FY2014 (fiscal year ending March 2014) was USD 157 billion, an increase of USD 4 billion over FY2013. Infrastructure accounts for 49%, housing and real estate 42% and industrial projects 9%.