Real estate market size to expand to $1.3 tn by 2034: CREDAI

CREDAI Report: The real estate sector in India is set for substantial growth, with estimates suggesting it could reach a market size of $1.3 trillion by 2034 and $5.17 trillion by 2047, according to a report released by the Confederation of Real Estate Developers' Association of India (CREDAI).

Currently, the Indian real estate market stands at approximately Rs 24 lakh crore (around $300 billion), with residential and commercial segments accounting for 80 per cent and 20 per cent respectively, as stated in a report unveiled at CREDAI's YouthCon event.

The report, titled 'Building Viksit Bharat - Transformative role of the real estate sector in India', underlines the sector's potential to significantly impact the Indian economy in the years ahead. By FY 2034, the real estate sector is projected to contribute 13.8 per cent to the GDP, amounting to $1.3 trillion, and by 2047, it is expected to contribute 17.5 per cent, amounting to $5.17 trillion.

Within the residential segment, 61 per cent of the current supply exceeds Rs 45 lakh in cost, with an annual increase of 11 per cent in the average home area. The report also forecasts demand for an additional 7 crore housing units by 2030, with over 87.4 per cent of this demand expected to be for houses priced above Rs 45 lakh.

CREDAI highlights the importance of the real estate sector in driving various macroeconomic indicators such as employment generation, government revenue, banking ecosystem, and per capita income growth.

Boman R Irani, President of CREDAI, highlighted the critical role of the real estate sector in India's journey towards becoming a developed economy by 2047, citing its strong multiplier effect and robust demand.

Manoj Gaur, Chairman of CREDAI, echoed this sentiment, noting the sector's central role in achieving Viksit Bharat (developed India) and its alignment with the recent robust GDP growth.

Shekhar G Patel, President-Elect of CREDAI, acknowledged India's resilience amidst global challenges, citing significant GDP growth as evidence of the nation's economic and sectoral strength.

(With PTI inputs)