India’s residential realty has potential to generate output equivalent of $3.5 trn in 2047

financialexpress.com:

By 2047, India’s real estate sector is estimated to expand to $5.8 tn, contributing 15.5% to the total economic output, while the residential market has a potential to generate an output equivalent of $3.5 trn in 2047, according to the Knight Frank-NAREDCO India Real Estate-Vision 2047 report released recently.

Factors such as escalating demand for residential properties arising from rapid urbanisation and growing disposable incomes of individuals are supporting the fast paced expansion of the real estate industry in India. Apart from residential, the increasing need for contemporary office space, the need for hospitality and retail real estate development to cater to the growing consumption needs of the population are some of the other key growth inducing factors leading to real estate expansion in India. Furthermore, expanding e-commerce is catalysing the demand for warehousing and storage facilities in India providing a thrust to the industry.

Additionally, in recent years, the growing use of telecommunication services has necessitated the need for data centres or data storage facilities in India. From a government policy perspective, various initiatives such as focus on affordable housing, smart city projects, tax deductions on housing loans etc have enabled investment opportunities in the real estate sector in India.

“In the next 25 years, with a significant growth in the size of the economy, the real estate industry is poised for enormous opportunities in terms of shifts in consumption patterns as well as in revenue expansion,” said Rajan Bandelkar, President, NAREDCO.

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“Factors such as demographic advantages, improving business and