Market size of realty sector up 73% since 2015 to reach USD 482 bn: CII-Knight Frank

New Delhi, Apr 12 (PTI) Indian real estate sector's market size has risen 73 per cent since 2015 to reach USD 482 billion driven by higher economic growth leading to better demand for residential and commercial properties, according to CII-Knight Frank report.

Industry body CII and real estate consultant Knight Frank on Friday released a report 'India Real Estate: A Decade From Now', projecting that the market size is estimated to reach USD 1,487 billion (USD 1.48 trillion) by 2034.

Indian real estate market size, which means the value of output generated from residential and commercial segments of construction and services, stood at USD 279 billion in 2015 and has grown to USD 482 billion in 2024.

"Supported by a growing economy, the real estate sector in India has transitioned significantly," the report said.

India's real estate sector has forward and backward linkages with about 250 ancillary industries. It is one of the highest employment generators after the agriculture sector, accounting for 18 per cent of the total employment, the consultant noted.

"In terms of output, the market size of India's real estate sector is currently estimated at USD 482 bn contributing 7.3 per cent to the total economic output.

"By 2034, India's real estate sector is expected to expand to USD 1.5 trillion contributing 10.5 per cent to the total economic output," CII-Knight Frank India forecast.

The consultant attributed the surge in market size of the real estate sector to growing residential demand, increase in the need for contemporary office space, expanding hospitality, and retail sector.

Gulam Zia, Senior Executive Director, Research, Advisory, Infrastructure, and Valuation, Knight Frank India, said, "In the coming decade, India's economic ascent will be marked by an unprecedented surge, with the real estate sector poised to be a cornerstone of this transformative journey." Fuelled by burgeoning wealth, robust consumer spending, infrastructural advancements, entrepreneurial fervor, and strategic initiatives like 'Make in India', Zia said the country stands on the brink of a profound economic evolution.

"We anticipate the Indian real estate sector to grow to a USD 1.5 trillion powerhouse by 2034, constituting a remarkable 10.5 per cent of the nation's economic output," Zia said.

The residential market is expected to lead with a value of USD 906 billion in 2034, followed by the office sector contributing USD 125 billion.