Due to the rapid progress in the real estate sector, its size may increase significantly in the coming years. A recent report by Knight Frank and CII says that the size of the Indian real estate sector may rise to $1.5 trillion in the next 10 years.
Contribution To Economic Output
Knight Frank India and Confederation of Indian Industries released a report titled ‘Indian Real Estate – A Decade from Now’ on Friday. The report said that by 2034, the size of the Indian real estate sector will increase to $1.5 trillion, and its contribution to the total economic output will be 15 per cent. Currently (in the year 2023), the size of the Indian real estate sector is about $482 billion, and its contribution to the economic output is 7.3 per cent.
Housing Alone Will Contribute So Much
According to the report, the residential and office sectors will contribute to the upcoming growth of Indian real estate during the next 10 years. However, the contribution of the residential sector will be much greater than that of the office sector. In 2034, the contribution of housing, i.e. residential in the Indian real estate sector of 1.5 trillion dollars, will be 906 billion dollars, while the office sector will contribute 125 billion dollars.
About 8 Crore New Houses Are Needed
Knight Frank says that the demand for housing in cities will remain strong in the coming years. 7.8 crore new houses will be needed in urban cities between 2024 and 2034. In other segments, by the year 2034, the revenue of real estate used for manufacturing activities will be 28 billion dollars, while the size of warehousing will reach 8.9 billion dollars.
The Size Of GDP Can Increase By This Much
Regarding the Indian economy, the report says that if the conditions remain favourable, the size of the country’s GDP can increase by about two and a half times in the next 10 years. India’s GDP is currently around 3.75 trillion dollars. The report expects the size to increase to $10.3 trillion by 2034.
