Realty mkt size up 73% since 2015 to reach $482 bn
NEW DELHI: Indian real estate sector’s market size has risen 73% since 2015 to reach $482 billion driven by higher economic growth leading to better demand for residential and commercial properties, according to CII-Knight Frank report.
Industry body CII and real estate consultant Knight Frank on Friday released a report ‘India Real Estate: A Decade From Now’, projecting that the market size is estimated to reach $1,487 billion ($1.48 trillion) by 2034.
Indian real estate market size, which means the value of output generated from residential and commercial segments of construction and services, stood at $279 billion in 2015 and has grown to $482 billion in 2024.
“Supported by a growing economy, the real estate sector in India has transitioned significantly,” the report said.
India’s real estate sector has forward and backward linkages with about 250 ancillary industries. It is one of the highest employment generators after the agriculture sector, accounting for 18% of the total employment, the consultant noted.
“In terms of output, the market size of India’s real estate sector is currently estimated at $482 bn contributing 7.3% to the total economic output.
“By 2034, India’s real estate sector is expected to expand to $1.5 trillion contributing 10.5% to the total economic output,” CII-Knight Frank India forecast.
The consultant attributed the surge in market size of the real estate sector to growing residential demand, increase in the need for contemporary office space, expanding hospitality, and retail sector.
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.”
Fuelled by burgeoning wealth, robust consumer spending, infrastructural advancements, entrepreneurial fervor, and strategic initiatives like ‘Make in India’, Zia said the country stands on the brink of a profound economic evolution.
“We anticipate the Indian real estate sector to grow to a USD 1.5 trillion powerhouse by 2034, constituting a remarkable 10.5% of the nation’s economic output,” Zia said.
The residential market is expected to lead with a value of $906 billion in 2034, followed by the office sector contributing $125 billion.