Sydney, Sep 23
The real estate market is expected to play a pivotal role in the economic growth trajectory of India. It will potentially be a $10 trillion market by 2047, accounting for a 14-20 per cent share in the country’s GDP, according to a report on Monday.
The interplay between real estate and India’s economic growth journey over the next few decades is explored in the latest report by Colliers in collaboration with the Confederation of Real Estate Developers' Associations of India (CREDAI) and released at the CREDAI NATCON event in Sydney.
The report noted that along the accelerated journey till 2047, various real estate segments will evolve and continue to proliferate, growing and maturing by varying degrees.
Core assets such as office and residential real estate are likely to mature further and alternative assets such as data centres and senior living will embark upon strong growth trajectories.
Market consolidation, fair pricing, and institutionalisation will become more pervasive across asset classes, especially in the industrial and warehousing segment.
With shifting demographic patterns in India, the median age is likely to increase from about 30 years to approximately 40 years by 2050.
Further, half of the Indian population is projected to live in urban agglomerations by 2050. With rapid urbanisation and supporting factors like infrastructure growth and employment opportunities, real estate traction is likely to expand beyond tier-I cities and create dispersed growth centres in smaller towns and cities.
Peripheral areas of established cities and tier II and III cities of the country will particularly witness accelerated real estate development across asset classes, the report said.