Global Real estate consultant Knight Frank along with The Confederation of Indian Industry has revealed a report which says that, India’s real estate sector is poised to grow by $1.5 trillion by 2034. The report is titled as Indian Real Estate: A Decade from Now' shows the growth trajectory of the sector is bolstering up the economy of India.
The report added, the real estate sector will contribute 10.5 %to the nation's GDP over next ten years. India’s population is also increasing along with the real estate growth and it is expected to reach 10.5% to the nation's GDP over next ten years. The demand for housing will grow in a rocket speed to reach an estimated value of $906 billion by 2034.
The report also revealed that, the urban sector is in need of 78 million new homes between 2024 and 2034. Further, this highly increasing demand is observed in various income groups, from affordable housing to luxury segments, catering to the diverse needs of India's evolving demographic landscape. Commercial real estate sector is also competing well with projections indicating a requirement of 2.7 billion square feet of office space by 2034.
The chairman of CII's National Committee on Real Estate and Housing, Neel Raheja showed optimistism about the sector's prospects. He mentioned that, the real estate sector is offering vast opportunities for investors, propelling India's economy towards a trajectory of unprecedented growth.
Raheja quoted, "Ahead to 2034, the prospects for India's real estate sector appear highly reassuring, driven by a confluence of factors such as shifting demographics, rapid technological advancements, and supportive policy measures. This confluence is expected to catalyse significant investments in the sector, buoyed by strategic foresight and innovative approaches. Going forward, the real estate market is poised to offer a myriad of opportunities for investors across its asset classes."
He further added, "In the next decade, with a significant growth in the size of the economy, the real estate industry is poised for enormous opportunities in terms of shifts in consumption patterns as well as in revenue expansion. I look forward to this report defining the real estate growth story, in turn reflecting upon its role as a leading engine that will take the Indian economy to its path of success."
Gulam Zia, Senior Executive Director - Research, Advisory, Infrastructure, and Valuation, Knight Frank India, said "In the coming decade, India's economic ascent will be marked by an unprecedented surge, with the real estate sector poised to be a cornerstone of this transformative journey. Fueled by burgeoning wealth, robust consumer spending, infrastructural advancements, entrepreneurial fervor, and strategic initiatives like 'Make in India', our nation stands on the brink of a profound economic evolution."
The report further explains that, India's economy surges to $10.3 trillion by 2034, the share of retail consumption is estimated to comprise 21% of total private consumption, providing a substantial boost to the retail real estate market.
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