Real estate in India may reach $1.5 trillion by 2034 – Here’s why

The report underlines the robust demand for residential and commercial properties, with the residential market expected to lead the growth at a value of $906 billion. (Image: By Arrangement)

As the country embarks on a growth trajectory, the Indian real estate sector becomes more promising. Fueled by urbanization, middle-class expansion, infrastructure development, significant foreign investments, and unwavering government support, the sector is set for unprecedented growth and transformation. This trajectory has not only maintained the sector’s allure but also opened up a world of opportunities for investors, promising potential for significant profit across residential, commercial, and retail segments.

As the country ventures into the realms of the future, India’s real estate landscape appears to be more dynamic by 2034. A recent report by Knight-Frank India-CII forecasts that by 2034, India’s real estate sector is expected to expand to $1.5 trillion, with the residential market leading at a value of $906 billion, followed by the office sector at $125 billion. This forecast has filled the sector with great enthusiasm and dedication to offer more to the public.

Commenting on the same, Manoj Gaur, President, CREDAI NCR and CMD, Gaurs Group, said, “The Indian real estate sector has witnessed massive growth in the last two years. The demand has grown tremendously due to various factors like massive infrastructure development, increased purchasing power, and stable economy. The introduction of RERA also brought back the trust in the industry. All these factors resulted in robust demand. The residential sector in India is experiencing an upcycle. This rise in demand has instilled greater confidence among developers to curate more projects that will cater to the diverse needs of buyers. We see good times ahead and greater contribution of real estate sector in the Indian economy.”

The report also underlines the robust demand for residential and commercial properties, with the residential market expected to lead the growth at a value of $906 billion. This demand is driven by a young population and urban expansion, providing a stable market for developers. Furthermore, the commercial real estate sector, especially the office spaces, is expected to witness a significant rebound, fueled by the expansion of Global Capability Centres.

Regarding output, India’s real estate market is currently estimated at $482 billion, contributing 7.3% to the total economic output. The report forecasts that by 2034, the sector will expand to $1.5 trillion, contributing 10.5% to the total economic output.

“The change in people’s lifestyle has led to an increase in residential properties in the country. This upsurge in demand is anticipated to establish affordable housing and luxury segments, catering to the evolving India’s demographic landscape. This rise in residential properties will further increase the demand for commercial properties in the vicinity, thus allowing developers to strengthen their presence in the country and contributing to India’s economic growth,” said Neeraj Sharma, MD, Escon Infra Realtors.

Reflecting on the forecast, Pawan Sharma, MD, Trisol RED, said, “Considering recent times, the burgeoning urban population will increase the demand for housing in the country. With this increase in demand, we foresee strong sales in the coming years, leading to this we craft more and more projects. Undoubtedly, this will enhance the confidence of Indian homebuyers and boast an aspirational and continuous growth in the real estate sector.”