The real estate sector is estimated to reach a market size of $1.3 trillion by 2034 and $5.17 trillion by 2047, according to a report by realtors body CREDAI.
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The current market size of Indian real estate is ₹24 lakh crore (around $300 billion), split between residential and commercial segments in the ratio of 80 per cent and 20 per cent, respectively, it said in a statement on Saturday.
The Confederation of Real Estate Developers’ Association of India (CREDAI) on Saturday released a report ‘Building Viksit Bharat-Transformative role of the real estate sector in India’, at its event, YouthCon.
According to CREDAI, Indian real estate will have a significant impact on the Indian economy in the coming years “with the sector projected to reach $1.3 trillion (13.8 per cent of projected GDP) by FY 2034 and $5.17 trillion (17.5 per cent of projected GDP) by 2047.” Among the residential segment, 61 per cent of current supply is above the cost of ₹45 lakh.
The average home area is also increasing at 11 per cent on an annual basis.
CREDAI also projected that there will be seven crore units of additional housing demand by 2030.
Reflecting the aspirational growth of Indian homebuyers, over 87.4 per cent of housing demand by 2030 is expected to be of houses costing more than ₹45 lakh.
CREDAI emphasised the significance of Indian real estate to the overall growth of the economy and some of the most important macro-economic indicators including employment, revenues for government and banking eco-system and increasing per capita income.
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CREDAI President Boman R Irani said, “Indian real estate today stands at an extremely important junction amidst India’s journey to become a developed economy by 2047. Due to its strong multiplier effect coupled with robust real estate demand, the sector is bound to play a critical role in multiplying GDP value…” CREDAI Chairman Manoj Gaur said, “To achieve Viksit Bharat, real estate is going to be at the nucleus of growth which is also validated by the recent sheer volume that has coincided with strong quarter-on-quarter GDP numbers.” CREDAI President Elect Shekhar G Patel said, “Currently, India is witnessing significant GDP growth despite global headwinds which is a testament to our economic and sectoral resilience.”