<p>Bengaluru: The Indian real estate sector is set to cross $4.8 trillion in market size by 2047, contributing over 18 per cent to the projected $26 trillion GDP target in that timeline, according to a joint report by the Confederation of Real Estate Developers' Associations of India (CREDAI) and Ernst & Young LLP (EY) out on Tuesday.</p>.<p>Currently, the realty industry is valued at around $300 billion with a 7 per cent share of the GDP. For the next 23 years, the GDP is expected to have a mean growth rate of about 8 per cent. The real estate sector is expected to witness a growth rate of 13-15 per cent over the next 5-6 years. Till 2047, the realty sector, growing at 10-12 per cent annually, is expected to outpace the other sectors’ contribution to GDP.</p>.<p>In the US and China, the realty sector has outpaced GDP growth in its peak growth phase.</p>.<p>The residential segment is expected to have approximately 75 per cent of the overall value of the real estate sector followed by commercial, industrial and retail segments till 2032. Post this, other segments such as commercial, industrial and alternatives are expected to have greater growth. By 2047, the residential sector would constitute 58 per cent, commercial 20 per cent, industrial and warehousing 12 per cent, retail 5 per cent, others 5 per cent.</p>.<p><strong>Tech revolution</strong></p>.<p>The property technology or proptech segment is also set to grow at a sustained rate, with the segment reaching $600 billion in market size by 2047 or approximately 12-13 per cent of the entire realty industry. Currently, proptech makes up less than 5 per cent of the $300 billion real estate sector.</p>.India's 26 major listed realty firms sell Rs 35K crore worth properties in Q2; Godrej Properties at top.<p>Overall, technologies like AI, machine learning, internet of things, and building information modelling are reshaping real estate practices. The market penetration for ICT and proptech based solutions in the sector is estimated to be $10.5 billion in 2023.</p>.<p>According to the report, the emergence of proptech is crucial for improving the efficiency of property dealings due to its building and home automation, construction technology, and technology integration in municipal services.</p>.<p><strong>Other aspects</strong></p>.<p>The realty sector currently employs over 77 million people or approximately 14-15 per cent of India’s workforce. </p>.<p>Tier II and III cities such as Indore, Surat, Jaipur, Chandigarh, Salem, Bhopal, Visakhapatnam and Agra amongst others are emerging as new real estate investment hubs. </p>.<p>Additionally, India’s young population and expanding middle class, projected to surpass one billion by 2047, are set to propel discretionary spending, housing demand, and real estate investments. </p>.<p>CREDAI reiterated the realty sector’s long-pending requests such as granting of industry status, increasing the affordable housing threshold sale value from Rs 45 lakh to Rs 90 lakh, the option of input tax credit based on the GST scheme as per the developer’s choice, streamlining land acquisition policies, and investor-friendly financing models.</p>
<p>Bengaluru: The Indian real estate sector is set to cross $4.8 trillion in market size by 2047, contributing over 18 per cent to the projected $26 trillion GDP target in that timeline, according to a joint report by the Confederation of Real Estate Developers' Associations of India (CREDAI) and Ernst & Young LLP (EY) out on Tuesday.</p>.<p>Currently, the realty industry is valued at around $300 billion with a 7 per cent share of the GDP. For the next 23 years, the GDP is expected to have a mean growth rate of about 8 per cent. The real estate sector is expected to witness a growth rate of 13-15 per cent over the next 5-6 years. Till 2047, the realty sector, growing at 10-12 per cent annually, is expected to outpace the other sectors’ contribution to GDP.</p>.<p>In the US and China, the realty sector has outpaced GDP growth in its peak growth phase.</p>.<p>The residential segment is expected to have approximately 75 per cent of the overall value of the real estate sector followed by commercial, industrial and retail segments till 2032. Post this, other segments such as commercial, industrial and alternatives are expected to have greater growth. By 2047, the residential sector would constitute 58 per cent, commercial 20 per cent, industrial and warehousing 12 per cent, retail 5 per cent, others 5 per cent.</p>.<p><strong>Tech revolution</strong></p>.<p>The property technology or proptech segment is also set to grow at a sustained rate, with the segment reaching $600 billion in market size by 2047 or approximately 12-13 per cent of the entire realty industry. Currently, proptech makes up less than 5 per cent of the $300 billion real estate sector.</p>.India's 26 major listed realty firms sell Rs 35K crore worth properties in Q2; Godrej Properties at top.<p>Overall, technologies like AI, machine learning, internet of things, and building information modelling are reshaping real estate practices. The market penetration for ICT and proptech based solutions in the sector is estimated to be $10.5 billion in 2023.</p>.<p>According to the report, the emergence of proptech is crucial for improving the efficiency of property dealings due to its building and home automation, construction technology, and technology integration in municipal services.</p>.<p><strong>Other aspects</strong></p>.<p>The realty sector currently employs over 77 million people or approximately 14-15 per cent of India’s workforce. </p>.<p>Tier II and III cities such as Indore, Surat, Jaipur, Chandigarh, Salem, Bhopal, Visakhapatnam and Agra amongst others are emerging as new real estate investment hubs. </p>.<p>Additionally, India’s young population and expanding middle class, projected to surpass one billion by 2047, are set to propel discretionary spending, housing demand, and real estate investments. </p>.<p>CREDAI reiterated the realty sector’s long-pending requests such as granting of industry status, increasing the affordable housing threshold sale value from Rs 45 lakh to Rs 90 lakh, the option of input tax credit based on the GST scheme as per the developer’s choice, streamlining land acquisition policies, and investor-friendly financing models.</p>