CREDAI forecasts 70 million more homes needed by 2030

According to the Confederation of Real Estate Developers? Association of India (CREDAI), the real estate sector is forecasted to attain $ 1.3 trillion (13.8% of projected GDP) by FY 2034 and $ 5.17 trillion (17.5% of projected GDP) by 2047. It was stated by the CREDAI that over 280 million Indian citizens express their desire to purchase a house, from the 400-million population that is yet to possess a house in the country. Additionally, CREDAI projects that there will be an additional housing demand of 70 million by 2030. CREDAI President Boman R Irani remarked that due to its strong multiplier effect along with robust real estate demand, both for housing and commercial purposes, the sector is bound to play a critical role in increasing GDP value and enhancing revenues, as well as per capita incomes, which will contribute to further growth as part of a self-sustaining cycle due to ever-increasing consumption. In its report, CREDAI mentioned that the current market size of Indian real estate is 24 trillion, with 80% allocated to residential and 20% to commercial. Among the residential segment, 61% of the current supply exceeds the cost of Rs 4.5 million. Furthermore, the average home area is observed to be increasing at a rate of 11% annually. Highlighting the aspirational growth of Indian Homebuyers, it is anticipated that over 87.4% of housing demand by 2030 will be for houses costing more than Rs 4.5 million. CREDAI Chairman Manoj Gaur remarked that to achieve Viksit Bharat, Real Estate is expected to be at the core of growth, which is also supported by the recent volume coinciding with strong quarter-over-quarter GDP numbers. Looking ahead, real estate is poised to play a pivotal role as India aims to expand its economy. With the cascading impact of the sector supporting over 250 industries directly and indirectly, CREDAI's projections offer a clear course of action and visibility on the sector's contribution to the country's development.