Akash Jha
Knight Frank India’s latest report, ‘India Real Estate: Vision 2047,’ prepared in collaboration with the National Real Estate Development Council (NAREDCO), predicts that the Indian real estate market will grow to USD 5.8 trillion by 2047.
Knight Frank stated in a press release that this estimated real estate output value will contribute 15,5% of the total economic output in 2047, up from its current contribution of 7.3%. Tomorrow, M Venkaiah Naidu, Former Vice President, along with other dignitaries attending the event, will disclose the report at NAREDCO’s Silver Jubilee Celebration in Hyderabad. By 2047, when India celebrates 100 years of independence, the size of India’s economy is projected to be approximately USD 33 trillion, and for the purposes of this study, Knight Frank has estimated the average growth of the Indian economy to be USD 36,4 trillion.
Rajan Bandelkar, President of NAREDCO India, commented on the occasion as follows: Vision 2047, not only for NAREDCO but also for Indian Real Estate, is about the road map for India’s economic development and the role of real estate as one of the leading engines of this growth story. By 2047, real estate will be a major driver of India’s economic expansion. He went on to say that a multiplicative economic expansion would increase demand across all asset classes — residential, commercial, warehousing, industrial land developments, etc. — at a multiplier rate to accommodate the growing requirements of the economy and the consumption needs of individuals.
Knight Frank India estimates that India will require a total of 230 million housing units over the next 25 years. In terms of market value, the residential market could generate an output equivalent to $3.5 trillion in 2047. Shishir Baijal, chairman and managing director of Knight Frank India, predicted that the Indian economy and real estate market will undergo a significant transformation over the next quarter-century. India’s economic expansion will be strongly supported by demographic advantages, improving business and investment sentiments, and government policy drive towards high-value output sectors including manufacturing, infrastructure, etc.
Also Read:-Rishabh Instruments IPO opens on Aug 30, price band set at Rs 418-441 a share
For sustainable growth, it is essential that India’s real estate sector adapt to economic and technological changes, maximising the use of expanding resources, particularly human capital, he added. By 2047, according to estimates by Knight Frank, 69 percent of the working population will be formally employed to support an economic expansion of USD 36 trillion.
In terms of market value, the estimated office stock will presumably generate a potential output equivalent to $473 billion in 2047. The office stock has grown considerably from 278 million sq ft in 2008 to 898 million sq ft across the top eight cities in India by 2022, according to the report.
