India’s real estate market is on track to surpass $4.8 trillion, accounting for over 18% of India’s $26 trillion GDP projected for the year 2047, according to the latest report by CREDAI and Ernst & Young. Released in November, it emphasizes how important real estate becomes in the development of India’s economy for the next few decades.
The key emphasis of the report is the propounded growth in PropTechs, which would touch as high as $600 billion till 2047, thus surpassing 12-13% as a share of the overall market in real estate. From less than 5% it contributes at present in India’s realty sector that amounts to $300 billion, that isn’t small. It still emphasizes innovations such as Internet of Things (IoT) and Building Information Modelling (BIM), too, which are transforming the sector through efficient and transparent growth of the entire value chain of real estate.
Currently, India’s real estate sector engages more than 77 million people, accounting for around 14-15% of the workforce, and remains one of the country’s mainstays. In the near term, the sector has scope for further growth with macro-level infrastructure initiatives such as the National Infrastructure Pipeline and PM Gati Shakti.
These projects, which include investments in transport, energy, and communication infrastructure, should unlock significant opportunities in adjacent real estate markets.
The report has also underlined the promising potential of Tier II and III cities like Indore, Surat, Jaipur, and Agra. The cities, owing to growing demand and state initiatives, are going to become strong investment destinations in the realty sector. Additionally, the fast-growing population of young, middle-class Indians will also rise to one billion by 2047, further pushing housing demands and driving real estate investment.
In order to facilitate this growth, CREDAI demands a set of policy reforms such as granting industry status to the real estate sector for easier access to financing, redefining affordable housing criteria, and streamlining land acquisition processes to promote sustainable urbanization. The report also advocates for the development of planned satellite towns to decongest major metropolitan areas and foster balanced regional growth.
