IGI Logo

In its latest report – India Real Estate: Vision 2047, Knight Frank India, a leading real estate consultancy in the country, in association of NAREDCO has projected that India’s real estate sector is expected to expand to USD 5.8 trillion (trn) or USD 5,833 billion (bn) by 2047. This estimated real estate output value will contribute 15.5% to the total economic output in 2047 from an existing share of 7.3%.

The report India Real Estate: Vision 2047 was unveiled by Shri. M. Venkaiah Naidu, Former Vice President, Govt of India at NAREDCO’s Silver Jubilee Celebration event in Hyderabad, along with other dignitaries present at the event.

By 2047, when India reaches 100 years of independence, the size of India’s economy is estimated to range between USD 33 trn to USD 40 trn.

For study purpose, Knight Frank taken the the mean estimated growth of Indian economy to value USD 36.4 trn by 2047.

Potential output growth of Real Estate and key assets by 2047

Private equity (PE) investments in the Indian real estate sector have consistently grown over the past two decades. Projections for 2023 indicate that PE investments in Indian real estate are poised to reach USD 5.6 bn, reflecting a YoY growth of 5.3%.

With India's GDP expected to reach USD 36.4 trn by 2047, the private equity investments within the Indian real estate sector are projected to surge to USD 54.3 bn by 2047, signifying a CAGR of 9.5% spanning 2023 to 2047.

Providing perspective on REITs, Knight Frank shared that the combined portfolio of Indian REITs encompasses 84.9 mn sq ft, with 75.9 mn sq ft dedicated to office assets and 9 mn sq ft to retail assets. Additionally, there is ongoing construction of approximately 21.3 mn sq ft within the REITs sector, projected to reach completion within 1-2 years.

Commenting on the occasion, Rajan Bandelkar, President NAREDCO India said, “Vision 2047, not just for NAREDCO but for Indian Real Estate, is about the roadmap of India’s economic growth, and the role of real estate as one of the leading engines of that growth story," said Rajan Bandelkar, President, NAREDCO. "Significant expansion of the Indian economy by 2047, will be powered by Real Estate. A multifold economic expansion will boost demand across all the asset classes - residential, commercial, warehousing, industrial land developments etc - will grow at a multiplier rate to accommodate the growing needs of the economy and consumption needs of the individuals,"

Global Recognition: Indian REITs Making Their Mark

With the initial REITs setting a positive precedent, it is probable that REITs in the coming years will expand into diverse sectors such as residential and warehousing, in addition to the existing office and retail segments. Inspired by global markets, developers are likely to contemplate venturing into REITs for alternative asset classes like data centers, hospitality, healthcare, education and more, in the longer term over the next 25 years.

To Read Complete Report & Disclaimer Click Here

Above views are of the author and not of the website kindly read disclaimer