Real estate poised for a big leap: How this will contribute to India’s growth story
In a news that has brought cheers to the Indian realty market, Knight Frank and CII have reported that the sector will grow three-fold in the coming decade and is expected to reach USD 1.5 trillion by 2034, contributing 10.5% of the country’s total economic output, translating a phenomenal increase of 3.2%. At present, the sector’s contribution to the GDP is 7.3%.
On a deeper data analysis, the report shows that the residential segment is expected to reach USD 906 billion by 2034. The contribution of the office segment, on the other hand, is expected to be USD 125 billion. It is followed by land for manufacturing activities and warehousing.
Among the primary factors that make these figures easily attainable is the economics of growth based on the country’s demographic increase. As India’s population is expected to reach 1.55 billion by that year, an estimated 42.5% of the population will reside in urban centers. It will provide a fillip to the real estate sector and create demands for both residential and commercial spaces. The report also indicates that to accommodate the consequent increase urban population will require an additional 78 mn housing units between 2024 and 2034. It will act as a major booster for the real estate sector.
Further, the country’s rapid economic growth in the same period will lead to an increase in income of the broad spectrum of society, which in turn will further stimulate demand. Since a substantial portion of the population will constitute the lower-middle and upper-middle-income groups, it will create a huge housing demand in the affordable segment, which will make it a segment with immense potential.
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The Indian real estate
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