The Confederation of Real Estate Developers Association of India (CREDAI) has predicted that the real estate sector in India is poised to achieve remarkable growth in the coming years. According to the CREDAI, the sector is projected to attain $1.3 trillion, which is 13.8% of the projected GDP by FY 2034. By 2047, it is expected to reach an astounding $5.17 trillion, accounting for 17.5% of the projected GDP.
Housing Demand and Aspirations
The CREDAI’s report also shed light on the aspirations of the Indian population for homeownership. Out of the 400-million population in the country, over 280 million express their desire to purchase a house. This translates to a significant housing demand, and CREDAI projects an additional requirement of 70 million houses by 2030. Growth Potential and Contribution to GDP: Boman R Irani, the President of CREDAI, emphasized the strong multiplier effect and robust demand in the real estate sector, both for housing and commercial purposes. He highlighted that this sector will play a critical role in not only increasing GDP value but also enhancing revenues and per capita incomes. This upward trajectory is expected to create a self-sustaining cycle driven by ever-increasing consumption.
Residential and Commercial Market
The current market size of the Indian real estate is estimated to be 24 trillion, with 80% of it allocated to residential properties and the remaining 20% to commercial properties. Within the residential segment, 61% of the current supply exceeds the cost of Rs 4.5 million. Additionally, the average home area is observed to be growing at a rate of 11% annually.
Shifting Demand and Changing Landscape
As Indian homebuyers evolve, the report states that over 87.4% of the housing demand by 2030 will be for houses costing more than Rs 4.5 million. This highlights the aspirational growth and changing preferences of potential homeowners in the country. Role in National Development: CREDAI Chairman, Manoj Gaur, predicts that the real estate sector will play a vital role in achieving the vision of Viksit Bharat (Developed India). He also highlighted that the recent volume in the sector aligned with strong quarter-over-quarter GDP numbers further supports the significance of real estate in India’s economic growth. The sector’s impact is far-reaching, supporting over 250 industries directly and indirectly, making it an integral part of the country’s development.
Bright Future Ahead
With the staggering growth projections and the cascade of opportunities it offers, the Indian real estate sector looks poised for a bright future. As the country aims to expand its economy, the sector’s contribution will be pivotal. The insights provided by CREDAI’s report offer valuable guidance and visibility on how real estate will shape the growth of the nation.
