A report published by the Confederation of Real Estate Developers’ Association of India (CREDAI) has revealed optimistic projections for the Indian real estate industry, indicating a remarkable growth trajectory in the forthcoming decades.
Titled ‘Building Viksit Bharat-Transformative Role of the Real Estate Sector in India,’ the report anticipates that the sector will expand to a market size of $1.3 trillion by 2034 and an astonishing $5.17 trillion by 2047.
Currently valued at ?24 lakh crore (approximately $300 billion), the Indian real estate market is predominantly divided between residential and commercial sectors, with residential properties comprising 80 per cent and commercial properties 20 per cent of the market share.
The report underscores the pivotal contribution of the real estate sector to India’s economic advancement, with projections indicating its substantial impact on the country’s GDP.
By FY 2034, Indian real estate is expected to account for 13.8 per cent of the projected GDP, with further growth to encompass 17.5 per cent of the GDP by 2047.
Moreover, CREDAI forecasts a significant demand for housing, estimating a need for seven crore additional units by 2030.
This surge in demand reflects the aspirational growth of Indian homebuyers, with over 87.4 per cent of housing demand projected to originate from properties priced above Rs 45 lakh.
Significantly, the average size of homes is on an upward trajectory, experiencing an annual growth rate of 11 per cent.
Leaders within CREDAI emphasize the pivotal role of real estate in India’s economic journey.
Boman R Irani, President of CREDAI, underscores the sector’s multiplier effect and its potential to substantially contribute to GDP growth.
Irani asserts, “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, highlights the sector’s pivotal role in fostering economic growth, correlating its performance with India’s robust GDP figures.
Shekhar G Patel, President Elect of CREDAI, acknowledges India’s economic resilience amid global challenges, emphasizing 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.
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