The Transformative Role of the Indian Real Estate Sector in Driving Economic Growth and Development
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The Growth of the Indian Real Estate Sector
A recent report released by the Confederation of Real Estate Developers’ Association of India (CREDAI) has predicted a substantial upswing in the Indian real estate sector. The report, titled ‘Building Viksit Bharat – Transformative Role of the Real Estate Sector in India’, estimates that the market size will reach $1.3 trillion by 2034 and a staggering $5.17 trillion by 2047.
Current Market Overview
At present, the Indian real estate market is valued at approximately $300 billion (Rs 24 lakh crore), with a division between residential and commercial segments in an 80-20 split respectively, according to the CREDAI report. The average size of homes is also increasing by 11% annually.
Projected Housing Demand and Economic Impact
The report also projects a demand for an additional seven crore housing units by 2030. Interestingly, over 87.4% of this demand is expected to be for houses costing more than ₹45 lakh, reflecting the aspirational growth of Indian homebuyers.
CREDAI emphasizes the significance of the Indian real estate sector in driving overall economic growth. It highlights the sector’s strong multiplier effect, its contribution to GDP, employment generation, revenue for the government and banking ecosystem, and the increasing per capita income.
CREDAI President, Boman R Irani, states that the real estate sector is poised to play a critical role in India’s journey to become a developed economy by 2047. He emphasizes the sector’s robust demand and its potential to multiply the GDP value.
CREDAI Chairman, Manoj Gaur, echoes this sentiment, stating that real estate will be at the nucleus of growth to achieve Viksit Bharat. He highlights the recent volume of real estate transactions coinciding with strong quarter-on-quarter GDP numbers as validation of the sector’s importance.
CREDAI President-Elect, Shekhar G Patel, acknowledges India’s significant GDP growth despite global headwinds, emphasizing the country’s economic and sectoral resilience.
In conclusion, the CREDAI report underscores the transformative role of the Indian real estate sector and its potential to drive economic growth and development in the coming years.
