Indian real estate market size will increase more than 12-fold to USD 5.8 trillion by 2047

According to a Naredco-Knight Frank analysis, the size of the Indian real estate market is predicted to increase more than 12-fold to USD 5.8 trillion by 2047 from USD 477 billion last year and will contribute more than 15% to the nation’s overall economic output.

‘India Real Estate: Vision 2047′ a report that was launched recently by the realtors’ association Naredco and the property advisor Knight Frank India, predicts good fortune for India.

By 2047, it is anticipated that India’s real estate market will have grown to $5.8 trillion, or $5,833 billion. In 2047, this predicted real estate output value will increase from its current proportion of 7.3% to 15.5%, according to a statement by Naredco-Knight Frank.

When India celebrates 100 years of independence in 2047, it is projected that its economy will be between $33 trillion and $40 trillion in size.

For research purposes, Knight Frank has assumed that the Indian economy will increase on average to a value of $36.4 trillion by 2047. According to the analysis, the residential real estate industry would increase in size from $299 billion in 2018 to $3.5 trillion ($3,500 billion) in 2047. The office real estate industry is projected to increase in size from $40 billion to $473 billion, and the warehousing sector is projected to increase from $2.9 billion to $34 billion.

“Significant expansion of the Indian economy by 2047, will be powered by real estate. A multifold economic expansion will boost demand across all the asset classes — residential, commercial, warehousing, industrial land developments etc — will grow at a multiplier rate to accommodate the growing needs of the economy and consumption needs of the individuals,” President of NAREDCO India, Rajan Bandelkar, said.

Favourable domestic economic environment and economic resilience :According to Naredco

The favourable domestic economic environment with economic resilience, strengthened infrastructure growth plans, alternative investment models, and domestic consumption power, according to Niranjan Hiranandani, National Vice Chairman of Naredco, is what is driving the northbound growth in the Indian real estate sector.

“The next 25 years are going to witness a dramatic transformation in the Indian economy and the real estate sector,” Shishir Baijal, chairman and managing director of Knight Frank India, said.

He said that factors including India’s favourable demographics, rising corporate and investment confidence, and government policy initiatives to encourage high-value output industries like manufacturing and infrastructure will strongly assist the country’s economic growth. Over the past 20 years, private equity investments in the Indian real estate market have steadily increased. According to projections, PE investments in Indian real estate are expected to reach $5.6 billion in 2023, an increase of 5.3% over the previous year.

“With India’s GDP expected to reach $36.4 trillion by 2047, the private equity investments within the Indian real estate sector are projected to surge to $54.3 billion by 2047, signifying a Compound Annual Growth Rate) of 9.5% spanning 2023 to 2047,” the statement said.

In response to the research, Pradeep Aggarwal, chairman of Signature Global, stated that the real estate industry has consistently done well throughout the years, especially recently.

Following the Covid epidemic, the housing sector in particular has grown stronger and healthier. Sales have increased, prices have gradually increased, and the amount of unsold inventory has significantly decreased. The good news shows how resilient the industry is and signals a more promising future, according to Aggarwal.

Overall, Indian real estate is going through a fascinating time as mindsets in most of the major markets are bottoming out. The increase in sentiment is also supported by a significant rise in industry transparency.

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