India's Real Estate Sector Expected to Hit Rs 83 Lakh Crore by 2030: Report

Synopsis

India's real estate sector is set to expand significantly, projected to grow from Rs 40 lakh crore in 2023 to Rs 83 lakh crore by 2030. This growth is attributed to urbanization, rising incomes, and key government initiatives, with commercial real estate also bouncing back strongly.

Key Takeaways

India's real estate sector to reach Rs 83 lakh crore by 2030.
Projected GDP contribution to rise to 13% by 2030.
Commercial real estate shows robust recovery with significant office leasing.
Interior fit-out market expected to grow significantly.
Emerging trends in sustainability and technology are reshaping the industry.

New Delhi, March 28 (NationPress) India's real estate sector, which accounted for 7.3 percent of the GDP in 2023, is anticipated to contribute 13 percent to the nation's economic expansion by 2030, according to a recent report. The sector is projected to escalate from Rs 40 lakh crore in 2023 to Rs 83 lakh crore by 2030, propelled by urbanization, increasing income levels, and governmental initiatives like ‘Housing for All’ and the ‘Real Estate Regulatory Authority’ (RERA), as detailed in the report by CareEdge Ratings.

The commercial real estate sector is experiencing a resurgence, with office leasing activity reaching 71.9 million square feet in 2024, driven primarily by the IT, BFSI, and multinational corporations.

This sector is expected to maintain a substantial CAGR of 15.4 percent until 2030.

Bengaluru, Delhi-NCR, and Mumbai are at the forefront of this expansion, while Hyderabad and Pune are emerging as significant hubs. The growth momentum is significantly supported by the rise of Global Capability Centres (GCCs), hybrid work models, and coworking spaces.

The interior fit-out market, an essential aspect of commercial real estate, is projected to grow from Rs 277 billion in 2023 to Rs 805 billion by 2030, showcasing a strong CAGR of 16.5 percent, as stated in the report.

Innovative trends such as green fit-outs, tech-savvy designs, and hybrid workspace solutions are transforming modern office settings in India.

With India's urban population expected to hit 600 million by 2030, the demand for tailored workspaces in tier 1 and 2 cities will surge.

Tanvi Shah, Director and Head of CareEdge Advisory and Research, mentions, 'The office fit-out sector is projected to grow at a CAGR of 16 percent over the next five years, fueled by multinational corporations and substantial office space absorption in the IT, BFSI, and e-commerce sectors.'

The interior fit-out industry is spearheading innovation with a focus on sustainability, technology, and designs centered around employee needs. Additionally, government initiatives supporting smart cities provide a significant boost to the real estate sector, as noted in the report.