A groundbreaking report by Knight Frank India and the Confederation of Indian Industry (CII) unveils a promising future for India’s real estate market, projecting it to soar to a staggering $1.5 trillion by 2034. This growth trajectory is set to make a significant impact, with the sector contributing 10.5% to the country’s economic output.
Titled ‘Indian Real Estate: A Decade from Now,’ the report paints a vivid picture of the sector’s evolution, highlighting key sectors expected to drive this growth. Residential properties are slated to lead the charge with an estimated value of $906 billion, closely followed by the office segment at $125 billion. Moreover, the report forecasts substantial opportunities in land for manufacturing activities, anticipated to generate a value of $28 billion, alongside a burgeoning warehousing sector projected to yield revenues of $8.9 billion.
The study underscores the pivotal role of various economic drivers, including a burgeoning young population, robust domestic manufacturing, infrastructure development, and urban expansion, in propelling India’s economic growth in the next decade. With favorable conditions and assuming a 2% annual depreciation of the INR to dollar exchange rate, India’s GDP could potentially surge to $10.3 trillion by 2034.
Gulam Zia, Senior Executive Director of Research, Advisory, Infrastructure, and Valuation at Knight Frank India, expressed optimism about the real estate sector’s pivotal role in India’s transformative journey, emphasizing its significance in driving economic ascent.
In 2023, the sector’s market size stood at approximately $482 billion, contributing 7.3% to the total economic output, setting a solid foundation for its exponential growth ahead.
