March 18, 2024: 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 the Confederation of Real Estate Developers’ Association of India (Credai). The current market size of Indian real estate is Rs 24 lakh crore (around $300 billion), split between residential and commercial segments in the ratio of 80% and 200%, respectively.
According to the report, 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% of projected GDP) by 2034 and $5.17 trillion (17.5% of projected GDP) by 2047. Over 28 crore Indian citizens want to buy a house, among the 40-crore population that is yet to own a house in the country.
CREDAI also projected that there will be 7 crore units of additional housing demand by 2030. Among the residential segment, 61% of current supply is above the cost of Rs 45 lakh. The average home area is also increasing at 11% on an annual basis. Reflecting the aspirational growth of Indian homebuyers, over 87.4% of housing demand by 2030 is expected to be of houses costing more than Rs 45 lakh.
CREDAI emphasised the significance of Indian real estate to the overall growth of the economy and some of the most important macro-economic indicators including employment, revenues for government and banking eco-system and increasing per capita income.
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