Realtors’ body Naredco and property consultant Knight Frank India on Friday released a report ‘India Real Estate: Vision 2047’. According to the report the Indian real estate sector is expected to grow to USD 5.8 trillion by 2047, a significant increase from USD 477 billion value recorded last year.
Bengaluru: According to the Naredco-Knight Frank report, the Indian real estate sector is expected to grow to USD 5.8 trillion by 2047, a significant increase from USD 477 billion value recorded last year. The report also suggests that the sector will contribute to more than 15 percent of India’s economic output by 2047. The report titled “India Real Estate: Vision 2047” was jointly released by Naredco and Knight Frank India.
As per the report, the current share of the real estate sector in the country’s economic output is 7.3 percent. The report estimates that the sector’s share will increase to 15.5 percent in 2047. The report also projects that India’s economy will range between USD 33 trillion and USD 40 trillion by the time the country celebrates its 100th independence anniversary in 2047.
Knight Frank has estimated the mean growth rate of the Indian economy to reach USD 36.4 trillion by 2047. The report further suggests that the residential real estate market will grow to USD 3.5 trillion by 2047 from USD 299 billion in the previous year. Similarly, the office real estate market is expected to grow to USD 473 billion from USD 40 billion, while the warehousing market is projected to reach USD 34 billion from USD 2.9 billion.
The report also highlights that real estate will play a crucial role in India’s economic expansion by 2047. It suggests that all asset classes such as residential, commercial, warehousing, and industrial land developments will grow at a multiplier rate to accommodate the growing needs of the economy and consumption needs of individuals.
The report attributes the northbound growth in the Indian real estate sector to favourable domestic economic conditions, bolstered infrastructure growth plans, alternative investment models, and domestic consumption power. The report also suggests that demographic advantages, improving business and investment sentiments, and government policy push towards high-value output sectors such as manufacturing and infrastructure will robustly support India’s economic expansion.
Over the past two decades, private equity investments in the Indian real estate sector have consistently grown. The report projects that private equity investments within the Indian real estate sector will surge to USD 54.3 billion by 2047, reflecting a CAGR of 9.5 percent spanning 2023 to 2047. Projections for 2023 indicate that PE investments in the Indian real estate sector are poised to reach USD 5.6 billion, reflecting a year-on-year growth of 5.3 percent.
