A comprehensive report by Knight Frank India in collaboration with the Confederation of Indian Industry (CII) anticipates a monumental rise in the value of the Indian real estate market, expecting it to swell to a staggering $1.5 trillion by the year 2034. This expansion is projected to contribute significantly to the national economy, representing 10.5% of India’s Gross Domestic Product (GDP).
The study, entitled ‘Indian Real Estate: A Decade from Now,’ has taken a deep dive into the future of the nation’s property market, extrapolating the current trends and data to provide a future valuation of nearly 1.5 trillion dollars within a timeframe of the next decade and a half. This growth trajectory is expected to align proportionately with an increase in the real estate sector’s contribution to India’s total economic output.
Breaking down this prosperity across various segments within the real estate domain, it’s evident that residential areas are forecasted to take the lead, amassing an impressive projected value of $906 billion. Following this, the office sector is set to mark its territory with a value reaching $125 billion, indicative of India’s escalating corporate dynamism.
Furthermore, with India becoming an increasingly alluring hub for manufacturing, land designated for this purpose is estimated to enrich the market by $28 billion, showcasing the upsurge in industrial demand within the country. The warehousing sector is not far behind, poised to deliver a healthy sum of $8.9 billion in revenue due to the elevated need for storage and logistics management.
The report’s underpinnings reveal that this remarkable economic growth, earmarked for the forthcoming decade, is hinged on several pivotal elements. A burgeoning young population, an intensified focus on domestic manufacturing, sprawling infrastructural development, and the continuous expansion of urban landscapes are heralded as the primary drivers for this forecasted boom.
An aligning of stars with these contributing factors, coupled with an anticipated annual depreciation of 2% in the INR to USD exchange rate, paints a potential for India’s GDP to soar as high as $10.3 trillion by 2034, provided these variables remain constant and conducive.
Gulam Zia, Senior Executive Director specializing in Research, Advisory, Infrastructure, and Valuation at Knight Frank India, has been vocal about the implications of this study. Zia clarifies, “In the coming decade, India’s economic ascent will be marked by an unprecedented surge, with the real estate sector poised to be a cornerstone of this transformative journey.”
The analysis of current data establishes the real estate sector’s market size to be roughly $482 billion as of 2023. This figure underlines the sector’s already significant contribution of 7.3% to the nation’s overall economic output. However, the future expansion of this market is not simply an addition to the tangible cityscapes but a testament to the underlying economic vitality and robust development of India’s thriving ecosystem.
The transformative growth forecasted by this partnership between Knight Frank India and the CII is more than a number—it’s a narrative of modern India’s advancing economy, urbanization, and its promising trajectory as a global powerhouse in the coming decades. With its foot firmly placed on the accelerator of development, India’s real estate market is clearly gearing up for a journey of monumental proportions, promising new opportunities and a richer landscape for investors, businesses, and the populace at large.
