Over the years, the Indian real estate market has been crucial to the growth of the nation’s economy. The industry includes a wide variety of activities, such as the development of infrastructure, retail and industrial spaces, and residential and commercial real estate. The sector is one of the main forces behind India’s economic growth because of its significant impact on GDP. One of the most recent reports from CREDAI, the body that apexes the builder, shows this contribution.
According to a new report from the Confederation of Real Estate Developers’ Association (CREDAI), the market size of the real estate sector is predicted to reach $ 1.3 trillion (or 13.8% of GDP) by FY 2034 and $5.17 trillion (or 17.5% of GDP) by FY 2047. The report also forecasts an increase in housing demand of Rs 7 crore by 2030.
“With the increasing demand for real estate, the sector holds the potential to be the primary economic pillar of this country,” stated Manoj Gaur, President of CREDAI-NCR and CMD of Gaurs Group. Delhi-NCR, one of the nation’s largest real estate hubs and the site of a 3% increase in housing sales, emerged as a major contributor to this development. The growth of the economy as a whole as well as other macroeconomic indicators, such as employment, government and banking system revenues, and rising per capita income, have all been strongly impacted by the Indian real estate market.”
The current value of the real estate market is 24 lakh crore, which emphasizes the split of 80% for residential properties and 20% for commercial properties. The residential segment has aspirational growth for Indian homebuyers amidst housing demands.
“The residential real estate is the key driver of the construction sector in India,” said Ankush Kaul, Chief Business Officer of Ambience Group, emphasizing the sector’s contribution. The residential real estate market influences the nation’s economy and stimulates the creation of local infrastructure such as schools, roads, and utilities. Millennium City in Gurgaon is among the best illustrations of how improved infrastructure boosts the local economy by enhancing lifestyles. We envision that the rising housing demands will benefit homebuyers and investors, thus impacting the country’s overall economic growth.”
“Commercial real estate includes large-scale infrastructure development, including office buildings, malls, hotels, industrial parks, etc., which brings forth jobs in construction, architecture, property management, and many other fields,” stated Sanchit Bhutani Managing Director of Group 108. Cities with high-quality commercial real estate draw domestic and foreign companies, which promotes business growth and increases productivity. Among the many cities, Noida stands out as it is developing into a bustling center offering plenty of commercial spaces. Businesses in the area contribute to the GDP and revenue generation of the nation as they expand and thrive.
In addition, the CREDAI report states that 61% of the existing supply in the residential segment is priced higher than Rs. 45 lakh. Over 87.4% of housing demand will likely be satisfied by homes priced over Rs 45 lakh by 2030.
“India’s GDP is growing thanks largely to the residential and commercial real estate sectors, which stimulate economic activity, generate jobs, facilitate wealth creation, and support the country’s financial markets and infrastructure. The estimates provided by CREDAI provide insight into the industry’s role in the nation’s advancement toward becoming Viksit Bharat, according to Trisol RED MD Pawan Sharma.
“India’s urbanization rate has sustainability increased and is expected to increase to 40% by 2030,” stated Nayan Raheja of Raheja Developers. We anticipate that as urbanization increases, demand for housing, business and retail space, and better infrastructure will soar.”
India’s high-end residential and commercial real estate market will draw domestic and foreign investors. Productivity will rise, and company growth will be encouraged as a result. The economy of the nation will grow as businesses flourish and grow, according to Vidush Arya, Head of Strategy at Orris Group.
“The residential real estate sector significantly boosts India’s economic growth and catalyzes the infrastructural development in the nearby areas,” stated Amit Modi, Director of County Group. Cities like Noida are becoming more and more popular among investors and homebuyers as a result of the growth in upscale residential properties with contemporary amenities. This improves the residents’ quality of life even more and boosts the local economy. We anticipate that in the long run, this increased demand for housing will affect the nation’s economic growth.