Indian real estate industry will reach upto $ 1 trillion by 2030 and will become a major contributor to the GDP, as suggested by report titled 'Indian Real Estate Industry' by India Brand Equity Foundation (IBEF). A report by SURFACES REPORTER (SR).
Robust demand causing rise of real estate sector
The report suggests that real estate, which is the second-highest employment generator, after the agriculture sector will grow to Rs. 65,000 crore (US$ 9.30 billion) from Rs. 12,000 crore (US$ 1.72 billion) in 2019 and expected to reach US$ 1 trillion in market size by 2030, up from US$ 200 billion in 2021 and contribute 13% to the country’s GDP by 2025. Retail, hospitality, and commercial real estate are also growing significantly, providing the much-needed infrastructure for India's growing needs.
According to the report, the sector has witnessed high growth in the recent times with rise in demand for office as well as residential spaces. Reports suggests that in the third quarter of 2021, India's net office absorption reached 5.85 million sq. ft., up 8% YoY in key cities. Three cities—Delhi-NCR, Mumbai and Pune—accounted for 62% of the total volumes recorded in the quarter.
Between July 2021 and September 2021, a total of 55,907 new housing units were sold in the eight micro markets in India (59% YoY growth).
Recently, Niti Ayog CEO, Amitabh Kant too has commented over the role of real estate sector for bringing a multiplier effect in the development of the economy and expected its market size to reach USD 1 Trillion by 2030 during a virtual conference held by CII.
"The real estate sector plays a multiplier effect in the development of the economy and the ecosystem of the country. The sector is expected to reach a market size of USD 1 trillion and contribute 18-20 per cent of the country's GDP by 2030," he said.
The smart city project with a plan to build 100 cities is a prime opportunity for real estate companies. Make in India and India's growing might as a digital economy has spurred our warehousing and industrial segments. As we move ahead, technology will be a key game changer," he further added.