April 23, 2023
New Delhi, India
A joint study by Knight Frank India and the Confederation of Indian Industry (CII) forecasts that the Indian real estate market will soar to $1.5 trillion by 2034, significantly impacting the country’s economic landscape.
Key Insights from the Report:
- The report, titled ‘Indian Real Estate: A Decade from Now’, anticipates the realty market’s value to constitute 10.5% of India’s total economic output by 2034.
- Residential real estate is expected to lead, with a projected value of $906 billion, followed by the office sector contributing $125 billion.
- Manufacturing land is estimated to generate $28 billion in value, driven by increased demand, while warehousing is expected to yield revenues of $8.9 billion.
Factors Driving Growth:
- The surge in India’s economic growth will hinge on various factors such as a growing young population, domestic manufacturing, infrastructure development, and urban expansion.
- With favorable conditions and assuming a 2% annual depreciation of the USDINR, India’s GDP could potentially reach $10.3 trillion by 2034.
Housing Demand and Urbanization Trends:
- India’s population is projected to reach 1.55 billion by 2034, with 42.5% residing in urban centers, necessitating an additional 78 million housing units by 2024-34.
- The rising proportion of middle-income and upper-income households will drive demand across segments, including affordable and luxury housing, potentially generating an additional market value output of $906 billion over the next decade.
Bottom Line:
The projected growth of the Indian real estate market presents significant opportunities for economic expansion and urban development. With robust demand expected across various segments, the sector is poised to play a pivotal role in India’s transformative journey towards economic prosperity.
Disclaimer:
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