Real Estate Sector Set to Skyrocket, Projected to Reach USD 1.3 Trillion by 2034
The real estate sector in India is on the brink of a monumental transformation, poised to hit a staggering market size of USD 1.3 trillion by 2034, further escalating to USD 5.17 trillion by the year 2047. This projection comes from a comprehensive report by the Confederation of Real Estate Developers’ Association of India (CREDAI), shining a spotlight on the sector’s potential to dramatically influence the country’s economic landscape.
As of now, the real estate market in India boasts of a substantial value, pegged at approximately USD 300 billion (Rs 24 lakh crore), with the residential and commercial segments contributing to 80 percent and 20 percent of this figure, respectively. This split highlights the predominant focus on residential real estate within the country.
Released during CREDAI’s event, YouthCon, the report titled ‘Building Viksit Bharat-Transformative role of the real estate sector in India,’ elaborates on the future trajectory of real estate and its substantial impact on India’s economy. It forecasts that by the fiscal year 2034, the sector is slated to constitute 13.8 percent of the projected Gross Domestic Product (GDP), increasing significantly to 17.5 percent by 2047.
The residential landscape is currently dominated by units priced above Rs 45 lakh, accounting for 61 percent of the total supply. Furthermore, there has been an annual increase of 11 percent in the average area of homes, indicating a trend toward larger living spaces among Indian homebuyers.
In anticipation of the future, CREDAI predicts a surge in housing demand, estimating around 7 crore additional units required by the year 2030. This demand is likely to be driven by a growing preference for homes valued over Rs 45 lakh, which are expected to constitute over 87.4 percent of the total housing demand by the same year. This shift underscores the evolving aspirations and purchasing power of Indian consumers.
CREDAI has underlined the crucial role of the real estate sector in propelling India’s economic growth, touching upon its influence on vital macro-economic factors such as employment generation, government revenue, banking ecosystem sustainability, and enhancement of per capita income. The association’s leadership shared insights on the sector’s promising future and its potential to act as an economic multiplier.
Boman R Irani, President of CREDAI, expressed optimism about the sector’s role in India’s aspiration to evolve into a developed economy by 2047. He highlighted the dual benefits of a strong multiplier effect and robust demand within the real estate market as key drivers behind this anticipated growth.
Reflecting the sentiment, CREDAI Chairman Manoj Gaur emphasized real estate’s central position in achieving the vision of a developed India, citing recent growth trends that align with superior GDP performance. CREDAI President Elect Shekhar G Patel also pointed to India’s resilience amidst global economic challenges, attributing it to the country’s robust economic and sectoral foundations.
In summary, the CREDAI report not only projects a bright future for the Indian real estate sector but also positions it as a pivotal contributor to the nation’s journey towards economic development and prosperity. As India continues on this path, the real estate sector’s evolution will undoubtedly be a key storyline to follow.
