The real estate sector in India is projected to witness remarkable growth in the coming years, according to a report released by the Confederation of Real Estate Developers’ Association of India (CREDAI). The report, titled ‘Building Viksit Bharat-Transformative role of the real estate sector in India,’ predicts that the market size of Indian real estate will touch $1.3 trillion by 2034 and escalate to $5.17 trillion by 2047.
Currently, the Indian real estate market stands at ₹24 lakh crore (approximately $300 billion), with residential and commercial segments accounting for 80% and 20% of the market share, respectively.
The report underscores the significant contribution of the real estate sector to the Indian economy, with projections indicating that it will constitute 13.8% of the projected GDP by 2034 and 17.5% by 2047.
Key highlights from the report include:
– The residential segment is expected to witness substantial growth, with 61% of the current supply priced above ₹45 lakh.
– The average home area is projected to increase by 11% annually.
– The demand for housing is estimated to reach seven crore units by 2030, with over 87.4% of the demand expected to be for houses costing more than ₹45 lakh.
CREDAI emphasizes the pivotal role of the real estate sector in driving economic growth, creating employment opportunities, generating revenue for the government, and contributing to the banking ecosystem.
Boman R Irani, President of CREDAI, highlighted the critical role of the real estate sector in India’s journey towards becoming a developed economy by 2047. He emphasized the sector’s multiplier effect and its potential to significantly contribute to GDP growth.
Manoj Gaur, Chairman of CREDAI, emphasized the crucial role of real estate in driving growth, particularly in light of the recent robust GDP numbers.
Shekhar G Patel, President Elect of CREDAI, lauded India’s economic resilience and sectoral growth amidst global challenges, highlighting the significant GDP growth witnessed by the country.
The report’s findings underscore the transformative potential of the real estate sector in India and its importance in shaping the nation’s economic trajectory.