In its latest report Knight Frank India, in association of NAREDCO has projected that India’s real estate sector is expected to expand to USD 5.8 trillion (trn) or USD 5,833 billion (bn) by 2047. This estimated real estate output value will contribute 15.5% to the total economic output in 2047 from an existing share of 7.3%.1
By 2047, when India reaches 100 years of independence, the size of India’s economy is estimated to range between USD 33 trn to USD 40 trn.
Private equity (PE) investments in the Indian real estate sector have consistently grown over the past two decades. Projections for 2023 indicate that PE investments in Indian real estate are poised to reach USD 5.6 bn, reflecting a YoY growth of 5.3%.
With India's GDP expected to reach USD 36.4 trn by 2047, the private equity investments within the Indian real estate sector are projected to surge to USD 54.3 bn by 2047, signifying a CAGR of 9.5% spanning 2023 to 2047.
Providing perspective on REITs, Knight Frank shared that the combined portfolio of Indian REITs encompasses 84.9 mn sq ft, with 75.9 mn sq ft dedicated to office assets and 9 mn sq ft to retail assets. Additionally, there is ongoing construction of approximately 21.3 mn sq ft within the REITs sector, projected to reach completion within 1-2 years.
With the initial REITs setting a positive precedent, it is probable that REITs in the coming years will expand into diverse sectors such as residential and warehousing, in addition to the existing office and retail segments.
....
- 1. The report India Real Estate: Vision 2047 will be unveiled by Shri. M. Venkaiah Naidu, Former Vice President, Govt of India at NAREDCO’s Silver Jubilee Celebration event in Hyderabad, along with other dignitaries present at the event.