A report released by the Confederation of Real Estate Developers’ Association of India (CREDAI) on Saturday has forecasted a significant upsurge in the Indian real estate sector, estimating a market size of $1.3 trillion by 2034 and a whopping $5.17 trillion by 2047.
Presently valued at Rs 24 lakh crore (approximately $300 billion), the Indian real estate market is divided between residential and commercial segments, with an 80-20 split respectively, as per CREDAI’s report. The report titled ‘Building Viksit Bharat-Transformative role of the real estate sector in India’ was unveiled during the organisation’s YouthCon event.
CREDAI’s projections underscore the sector’s pivotal role in India’s economic landscape, with expectations of contributing 13.8 percent of the GDP by 2034 and a striking 17.5 percent by 2047. Within the residential segment, it is noted that 61 percent of current supply exceeds the Rs 45 lakh mark, reflecting the changing dynamics of housing preferences.
Moreover, the report highlights a noteworthy trend of increasing average home area at an annual rate of 11 percent. In anticipation of growing demand, CREDAI projects a requirement of 7 crore additional housing units by 2030, with over 87.4 percent of the demand anticipated to be for houses priced above Rs 45 lakh.
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.”
(With inputs from agencies)