Sydney : CREDAI and Colliers India, one of the top agencies in the real estate segment, released a report on the real estate sector on Monday. According to which it has been found that the size of the real estate sector in India can increase manifold by the year 2047. According to this report, it has been found that the potential of the real estate sector is expected to increase to 5000 to 7000 billion US dollars. If economic growth increases and urbanization accelerates, then this figure can also reach 10,000 dollars.
CREDAI, the apex body of the real estate sector, and real estate consultant Colliers India on Monday released a joint report 'Indian Real Estate: The Quantum Leap' at the 'CREDAI Natcon' conference here. According to the report, the market size of Indian real estate is estimated to reach US$ 3000 to 5000 billion in a pessimistic scenario, US$ 5000 to 7000 billion in a realistic scenario and US$ 7000 to 10000 billion in an optimistic scenario by 2047. The real estate sector is also estimated to contribute 14-20 per cent to India's total GDP.
Strong growth expected
The consultancy expects greater institutionalisation and market consolidation across all real estate segments. “We also expect maturity of core assets such as office and residential real estate, and strong growth in alternative assets such as data centres and senior citizens housing,” the report said.
Entering a new era of diversification
Additionally, real estate growth will extend beyond the boundaries of big cities and reach many smaller towns. CREDAI National President Boman Irani said, “With the interplay of dynamic factors such as rapid urbanisation, rising average age and technological advancements, we are on the verge of a sea change and entering a new era of growth and diversification.”
Operations throughout the region
He said it is estimated that by 2047, 50 per cent of India's population will reside in urban centres, generating unprecedented demand for residential, office and retail spaces. CREDAI National Chairman Manoj Gaur said India is on track to become a USD 10000 billion real estate market, driven by the sector's ability to adapt and innovate. “Historic initiatives like RERA and Writ Regulation have increased transparency, boosted investor confidence and streamlined operations across the sector,” he said.
Investment based on diversification
Badal Yagnik, CEO, Colliers India, said, “As India enters a phase of expansion across most economic sectors, real estate is poised for a quantum leap, generating multiple growth opportunities.” This long-term growth in real estate is driven by six key growth drivers: rapid urbanisation, infrastructure development, digitalisation, demographic change, sustainability and investment diversification, the report said.
(With agency input)
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