A report released by the Confederation of Real Estate Developers’ Association of India (CREDAI) unveiled promising forecasts for the Indian real estate sector, suggesting a remarkable growth trajectory in the coming decades.
According to the report titled ‘Building Viksit Bharat-Transformative Role of the Real Estate Sector in India,’ the sector is expected to soar to a market size of USD 1.3 trillion by 2034 and a staggering USD 5.17 trillion by 2047.
Currently valued at INR 24 lakh crore (approximately USD 300 billion), the Indian real estate market is predominantly split between residential and commercial segments, with residential comprising 80 per cent and commercial 20 per cent of the market share.
The report underscores the pivotal role of the real estate sector in driving India’s economic growth, with projections indicating its significant contribution to the country’s GDP.
By FY 2034, Indian real estate is anticipated to represent 13.8 per cent of the projected GDP, with further growth to encompass 17.5 per cent of the GDP by 2047.
Additionally, CREDAI projects a substantial demand for housing, estimating a requirement for seven crore additional units by 2030.
This surge in demand is indicative of the aspirational growth of Indian homebuyers, with over 87.4 per cent of housing demand anticipated to stem from properties priced above INR 45 lakh.
Notably, the average home area is on an upward trajectory, experiencing an annual growth rate of 11 per cent.
Leaders within CREDAI emphasise the pivotal role of real estate in India’s journey towards economic development.
Boman R Irani, President of CREDAI, highlights the sector’s multiplier effect and its potential to significantly contribute to GDP growth.
Irani emphasises, “Indian real estate today stands at an extremely important junction amidst India’s journey to become a developed economy by 2047.”
Similarly, Manoj Gaur, Chairman of CREDAI, underscores the sector’s pivotal role in fostering economic growth, correlating its performance with India’s strong GDP numbers.
Shekhar G Patel, President Elect of CREDAI, acknowledges India’s economic resilience amidst global challenges, emphasising the country’s significant GDP growth trajectory.
Patel’s remarks echo the sentiment of sectoral strength and resilience, positioning Indian real estate as a critical driver of economic progress.
(Source: PTI)