Real estate sector expected to expand to $5.8 trn by 2047: Report

International Property Consultant Knight Frank India in its latest report, 'India Real Estate: Vision 2047', prepared in association with the National Real Estate Development Council (NAREDCO) has projected that India's real estate sector is expected to expand to USD 5.8 trillion by 2047.

A press release from Knight Frank said this estimated real estate output value will contribute 15.5 per cent to the total economic output in 2047 from the existing share of 7.3 per cent.

The report will be unveiled by M Venkaiah Naidu, Former Vice President, at NAREDCO's Silver Jubilee Celebration event here in Hyderabad, along with other dignitaries present at the event here tomorrow, it said.

By 2047, when India reaches 100 years of independence, the size of India's economy is estimated to be around USD 33 trillion, and for study purposes, Knight Frank has taken the mean estimated growth of the Indian economy to be valued at USD 36.4 trillion by 2047.

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.

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, he further said.

According to Knight Frank India, in the next 25 years, cumulatively there will be an estimated 230 million units of housing requirement in India. In terms of market value, the residential market has a potential to generate an output equivalent of USD 3.5 trillion in 2047.

Shishir Baijal, Chairman & Managing Director, Knight Frank India, said the next 25 years are going to witness a dramatic transformation in the Indian economy and the real estate sector. Factors like demographic advantages, improving business and investment sentiments, and government policy push towards high-value output sectors such as manufacturing, infrastructure etc will robustly support the economic expansion of India.

For sustainable growth, it is imperative that India's real estate sector adapts to transformations in the economy and changing technologies, making optimum use of the growing resources, especially the human capital, he added.

As per Knight Frank estimates, 69 per cent of the working population will be formally employed to support the economic expansion of USD 36 trillion by 2047. In terms of market value, the estimated office stock is likely to generate a potential output equivalent to USD 473 billion in 2047.

The office stock has grown significantly from 278 million sq ft in 2008 to 898 million sq ft cumulatively across the leading eight cities in India in 2022, it added.