Real estate not depressed, $1 million million market by 2047; claims in report
New Delhi| There is no sign of recession in the Indian real estate market. Housing demand remains evergreen and strong. More residential projects need to be launched to meet this demand. Credai, the apex body in the realty sector, and real estate consultant Colliers India say the size of the Indian real estate market could increase manifold to five to seven trillion dollars by 2047. With increasing economic growth and rapid urbanization, it could even reach $1 million million. Credai and Colliers India at the ‘Credai NatCon’ conference said in a joint report ‘Indian Real Estate: The Quantum Leap’, House sales may fall in a quarter due to low offerings, but increased consumer demand after the Covid-19 pandemic remains intact.
On the estimated decline in sales in the current quarter, CREDAI national chairman Manoj Gaur said, new offers have been less in the September quarter. Residential properties offered by a good developer in the right places and at attractive prices are selling fast. New data from PropEquity estimated that home sales in nine major cities in India declined by 18 per cent to 1,04,393 units in July-September.
Real estate growth will extend beyond the boundaries of big cities to many smaller cities, the report said. By 2047, 50 per cent of the country’s population will reside in cities. This will create unprecedented demand in residential, office, data centers and retail locations.
According to the report, the share of the real estate sector in Indian GDP is expected to increase to 14-20 per cent by 2047. Six key factors will play a role for this long-term growth in real estate. These six factors…Rapid urbanization, infrastructure development, digitalization, demographic shifts, sustainability and investment diversification.
CREDAI national president Boman Irani said, there is a need for provision of GST input credit in the real estate sector. He said, prices have increased rapidly in the realty sector. As such, the definition of affordable housing needs to be changed, with the limit set at Rs 45 lakh in 2017.
