Realty sector might reach $1.3 trn by 2034

Indian real estate today stands at an extremely important junction amidst India's journey to become a developed economy by 2047 - Boman R Irani, Credai president

New Delhi: The Confederation of Real Estate Developers' Association of India (Credai) unveiled a report titled 'Building Viksit Bharat-Transformative role of the real estate sector in India' at the YouthCon event recently.

The report highlighted that the real estate sector is forecast to grow to a market size of $1.3 trillion by 2034 and $5.17 trillion by 2047.

As of now, the Indian real estate market stands at Rs 24 lakh crore (approximately $300 billion), with residential and commercial segments split 80-20 respectively.

Credai highlighted that Indian real estate will have a substantial impact on the economy in the upcoming years, projecting the sector to grow to $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.

Within the residential segment, 61 per cent of the current supply exceeds the cost of Rs 45 lakh.

The average home area is also growing at a rate of 11 per cent annually. Credai also estimates an additional demand for 7 crore housing units by 2030. Reflecting the aspirations of Indian homebuyers, over 87.4 per cent of housing demand by 2030 is expected to be for houses priced above Rs 45 lakh. Credai underscored the importance of Indian real estate in the overall economic growth, highlighting key macroeconomic indicators such as employment, government revenues, and the banking ecosystem, as well as increasing per capita income.

Credai President Boman R Irani remarked, "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 added, "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 commented, "Currently, India is witnessing significant GDP growth despite global headwinds which is a testament to our economic and sectoral resilience."