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.
Real estate is a significant contributor to India’s GDP, creating employment opportunities across various segments such as construction, architecture, engineering, interior design, and property management. It also generates substantial revenue for the government through taxes, duties, and fees associated with property transactions.
Current market size of Indian real estate is Rs 24 lakh crore (about $300 billion), which is divided between the residential and commercial sectors in the ratio of 80 percent and 20 percent respectively.
The latest report by the Confederation of Real Estate Developers’ Association of India (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.”
CREDAI has also estimated that there will be an additional housing demand of seven crore units by 2030. Reflecting the aspirational growth of Indian home buyers, over 87.4 per cent of the housing demand by 2030 is expected to be from homes costing more than ₹45 lakh.
CREDAI emphasized the importance of Indian real estate in the overall growth of the economy and some of the most important macro-economic indicators including employment, revenue to the government and banking eco-system and growth in per capita income.
Overall, the real estate sector in India serves as a catalyst for economic growth, social development, and urban transformation. Its continued evolution and adaptation to changing market dynamics will be essential for India’s sustainable development in the years to come.
In this way, it can be said that Indian real estate today stands at a very important juncture in the journey of India becoming a developed economy by 2047.