India’s real estate sector is expected to expand to $5.8 trillion by 2047, according to a report by property consultant Knight Frank.
The projected real estate output value will contribute 15.5 percent to the total economic output in 2047 from an existing share of 7.3 percent, the report titled 'India Real Estate: Vision 2047', Knight Frank India in association with NAREDCO said.
The residential real estate output will touch $3.5 trillion from $299 trillion in 2022 while the office real estate output will reach $0.47 trillion from $0.04 trillion, the report said. The warehousing real estate output will touch 0.034 trillion from 0.029 trillion last year, it added.
The report further projected that by 2047, the size of India’s economy is estimated to range between $33 trillion to $40 trillion.
Shift in ticket sizes
In the next few years, the report said, while demand for housing will remain concentrated in affordable housing, it will gradually shift towards mid-segment and luxury housing.
The share of lower-income households will reduce from the existing 43 percent currently to 9 percent in 2047. Thus, a significant share of the population will shift to lower-middle and upper-middle-income categories.
According to Knight Frank India, in the next 25 years, cumulatively there will be an estimated 230 million units of housing requirement in India. In terms of market value, the residential market has the potential to generate an output equivalent of $3.5 trillion in 2047.
In terms of market value, the estimated office stock is likely to generate a potential output equivalent to $473 billion in 2047. The office stock has grown significantly from 278 million sq ft in 2008 to 898 million sq ft cumulatively across the leading eight cities in India in 2022, it added.
For sustainable growth, it is imperative that India’s real estate sector adapts to transformations in the economy and changing technologies, making optimum use of the growing resources, especially the human capital, Shishir Baijal, Chairman & Managing Director, Knight Frank India added.
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