Real Estate Sector May Touch USD 1.3 Tn by 2034: CREDAI Report

NEW DELHI: The real estate sector is estimated to reach a market size of USD 1.3 trillion by 2034 and USD 5.17 trillion by 2047, according to a report by realtors body CREDAI.

The current market size of Indian real estate is Rs 24 lakh crore (around USD 300 billion), split between residential and commercial segments in the ratio of 80 per cent and 20 per cent, respectively, it said in a statement on Saturday.

The Confederation of Real Estate Developers' Association of India (CREDAI) on Saturday released a report 'Building Viksit Bharat-Transformative role of the real estate sector in India', at its event YouthCon.

According to CREDAI, Indian real estate will have a significant impact on the Indian economy in the coming years "with the sector projected to reach USD 1.3 trillion (13.8 per cent of projected GDP) by FY 2034 and USD 5.17 trillion (17.5 per cent of projected GDP) by 2047."

Among the residential segment, 61 per cent of current supply is above the cost of Rs 45 lakh.

The average home area is also increasing at 11 per cent on an annual basis.

CREDAI also projected that there will be 7 crore units of additional housing demand by 2030. Reflecting the aspirational growth of Indian homebuyers, over 87.4 per cent of housing demand by 2030 is expected to be of houses costing more than Rs 45 lakh.

CREDAI emphasized 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.