Indian real estate sector to be worth USD 1.5 trn by 2034; 78 mn new homes needed in cities: Knight Frank-CII report
The Indian real estate sector will grow over three times to reach an estimated USD 1.5 trillion by 2034, constituting 10.5% of the total economic output by then, according to a joint report by Knight Frank India and CII.
In its latest report titled ‘Indian Real Estate: A Decade from Now’, Knight Frank India, a leading real estate consultancy in the country, in association with the Confederation of Indian Industry (CII), has projected that the value of the Indian real estate sector.
In 2023, the sector’s market size was approximately USD 482 billion, contributing 7.3% to the total economic output. The residential market is expected to lead with a value of USD 906 billion, followed by the office sector contributing USD 125 billion. Land for manufacturing activities is estimated to generate a value of USD 28 billion, driven by rising demand in India, while warehousing is projected to yield revenues of USD 8.9 billion.
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According to the report, India’s economic growth in the next decade will depend heavily on several factors, including a growing young population, bolstered domestic manufacturing, infrastructure development, and urban expansion. Under favourable conditions for these drivers and assuming an annual 2% depreciation of the INR to USD exchange rate, India’s GDP could potentially reach USD 10.3 trillion by 2034.
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. Fueled by burgeoning wealth,
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