India’s real estate market is forecasted to triple to $1.5 trillion by 2034, driven by rising demand across residential, commercial, and warehousing sectors. The sector’s GDP contribution is also expected to increase, with significant urban housing and office space growth.
India’s real estate market is projected to triple in value, reaching an impressive $1.5 trillion by 2034, up from $482 billion. This growth is fueled by rising demands across residential and commercial sectors, alongside expanding industries like hospitality and retail. The findings come from the comprehensive ‘India Real Estate: A Decade From Now’ report by the Confederation of Indian Industry (CII) and Knight Frank, which predicts significant economic contributions from the sector.
“Furthermore, expanding e-commerce is catalysing the demand for warehousing and storage facilities in India, providing a thrust to the industry,” the report states. This indicates how interconnected economic sectors contribute to the surge in real estate development. As India’s GDP is expected to reach $10.3 trillion by 2034, underpinned by a young population and rapid urbanisation, the landscape of Indian real estate is set to transform dramatically.
The residential market is expected to lead with an estimated value of $906 billion by 2034, with office spaces at $125 billion. Urbanisation will be a significant driver, as 42.5% of Indians are expected to reside in urban centres by then, necessitating an additional 78 million housing units. The evolving income brackets are also pushing the need for affordable housing and, at the higher end, luxury housing, which is anticipated to see a rise in demand from 3% to 9% of households.
Commercial real estate, particularly office spaces, will substantially increase to accommodate the burgeoning formal economy. “By 2030, there will be an estimated 2,400 global capability centres (GCCs) across India as the country emerges as a global technology and services hub. Assuming a similar pace of growth, the number of GCCs in India may scale up to 2880 by 2034,” predicts the report. Currently, India hosts around 1,700 GCCs.
Investments in real estate are also on an upward trajectory, with private equity in the sector expected to soar from around $3.1 billion in 2023 to $14.9 billion by 2034. Emerging sectors such as data centres, healthcare, hospitality, co-living, and co-working spaces are identified as promising avenues for these investments, further driving the growth narrative in India for the upcoming years.
This anticipated growth in India’s real estate sector reflects broader economic trends and infrastructural developments, positioning the country as a critical player on the global real estate stage.
