2 weeks ago
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The Indian real estate market is expected to reach $1.5 trillion by 2034, contributing 10.5% to economic output, according to a joint study by Knight Frank India and the Confederation of Indian Industry (CII).
The report titled ‘Indian Real Estate: A Decade from Now’ has projected that the value of the Indian realty market would reach an estimated 1.5 trillion by 2034, constituting 10.5% of the total economic output of the country by then.
According to the report, the residential market is expected to lead with a value of $906 billion, followed by the office sector contributing $125 billion. Also, land for manufacturing activities is estimated to generate a value of $28 billion, driven by rising demand in India, while warehousing is projected to yield revenues of $8.9 billion.
“’India’s economic growth in the next decade will depend heavily on several factors, including a growing young population, bolstered domestic manufacturing, infrastructure development, and urban expansion. Under favourable conditions for these drivers and assuming an annual 2% depreciation of the INR to dollar exchange rate, India’s GDP could potentially reach $10.3 trillion by 2034,” the document said.
Gulam Zia, Senior Executive Director - Research, Advisory, Infrastructure, and Valuation, Knight Frank India, said “In the coming decade, India’s economic ascent will be marked by an unprecedented surge, with the real estate sector poised to be a cornerstone of this transformative journey.”
In 2023, the sector’s market size was approximately $482 billion, contributing 7.3% to the total economic output.
