Indian real estate industry to grow 12-fold to $5.8 trillion by 2047: Report
It is anticipated that India would have an economy of between 33 and 40 trillion United States dollars by the time it celebrates its centenary of independence in the year 2047.
NEW DELHI: The size of the Indian real estate sector is estimated to jump more than 12-fold to USD 5.8 trillion by 2047 from USD 477 billion last year and will contribute over 15 per cent to the total economic output of the country, according to Naredco-Knight Frank report.
Realtors’ body Naredco and property consultant Knight Frank India on Friday released a report India Real Estate: Vision 2047.
“India’s real estate sector is expected to expand to USD 5.8 trillion or USD 5,833 billion by 2047. This estimated real estate output value will contribute 15.5 per cent to the total economic output in 2047 from an existing share of 7.3 per cent,” Naredco-Knight Frank said in a statement.
By 2047, when India reaches 100 years of independence, the size of India’s economy is estimated to range between USD 33 trillion and USD 40 trillion.
For study purposes, Knight Frank has taken the mean estimated growth of the Indian economy to USD 36.4 trillion by 2047.
As per the report, the size of the residential real estate market is estimated to grow to USD 3.5 trillion (USD 3,500 billion) in 2047 from USD 299 billion last year.
The size of the office real estate market is likely to grow to USD 473 billion from USD 40 billion, while the warehousing market is expected to reach USD 34 billion from USD 2.9 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,” Rajan Bandelkar, President Naredco India, said.
Niranjan Hiranandani, National Vice Chairman of Naredco, said the northbound growth in the Indian real estate sector is driven by the favourable domestic economic environment with economic resilience, bolstered infrastructure growth plans, alternative investment models, and domestic consumption power.
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