In a game-changing revelation, the Indian real estate market is set to undergo an extraordinary transformation, surging more than 12-fold to reach a staggering $5.8 trillion by the year 2047, according to the recently unveiled Naredco-Knight Frank report. This monumental growth is projected to contribute a jaw-dropping 15% to the nation’s overall economic output.
The report states, that India’s real estate sector is poised to expand to an astounding $5,833 billion by 2047, marking a substantial leap from its current 7.3% share to a commanding 15.5% of the nation’s economic output.
By the time India celebrates its 100th year of independence in 2047, the nation’s economy is estimated to range between an impressive $33 trillion and $40 trillion. For analytical purposes, Knight Frank set the mean estimated growth of the Indian economy at a remarkable $36.4 trillion by 2047.
Delving into specifics, the residential real estate market is predicted to skyrocket to an eye-popping $3.5 trillion, surging from $299 billion just last year. Meanwhile, the office real estate market is poised for a dramatic ascent, reaching $473 billion from a mere $40 billion, and the warehousing sector is expected to swell to $34 billion from $2.9 billion.
By 2047, the Indian economy will undergo a massive change, with real estate leading the way, said Rajan Bandelkar, President of NAREDCO India. According to him, all types of assets, such as residential, commercial, warehousing, and industrial lands, will grow significantly to meet the rising demand of our economy and individual needs.
Niranjan Hiranandani, National Vice Chairman of Naredco, attributed the northbound trajectory of India’s real estate sector to a favorable domestic economic environment, resilience in financial stability, robust infrastructure development, innovative investment models, and the nation’s ever-expanding consumption power.
India’s economy and real estate sector will undergo a significant transformation in the next 25 years, says Shishir Baijal, Chairman and Managing Director of Knight Frank India. Baijal pointed to demographic advantages, better business and investment sentiments, and government initiatives in high-value sectors like manufacturing and infrastructure as driving forces behind India’s economic growth.
Private equity investments in Indian real estate have grown steadily for 20 years. Experts predict that these investments will reach $5.6 billion in 2023, growing at a rate of 5.3% per year. By 2047, India’s GDP is expected to reach $36.4 trillion, and private equity investments in the Indian real estate sector are predicted to skyrocket to $54.3 billion, growing at an impressive rate of 9.5% per year from 2023 to 2047.
The Indian real estate market is on an unprecedented trajectory, promising unparalleled opportunities and a pivotal role in the nation’s dynamic economic landscape.