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

India's realty segment, which was 7.3 per cent of the country's GDP during calendar 2023, will contribute 13 per cent towards the overall growth of the economy by the year 2030, as presented in a report on Friday. Housing market has been seen rising from Rs 40 lakh crore in the year 2023 to Rs 83 lakh crore by the year 2030, aided by urbanization, increasing income, and efforts made by the government such as 'Housing for All' and 'Real Estate Regulatory Authority' (RERA), indicated CareEdge Ratings.

 

The office leasing business is on the recovery path, with the office leasing activity reaching 71.9 million square feet in 2024, led by IT, BFSI, and multinationals.

 

The industry is also expected to expand at a strong CAGR of 15.4 per cent during 2030.

 

Bengaluru, Delhi-NCR and Mumbai drove this growth, with Hyderabad and Pune becoming hubs. The growth of Global Capability Centres (GCCs), hybrid work arrangements and coworking spaces contributed significantly to this growth momentum.

 

interior fit-out market, an integral component of commercial real estate, is expected to grow from Rs 277 billion in 2023 to Rs 805 billion by 2030, with a strong CAGR of 16.5 per cent, the report stated.

 

Upcoming trends such as green fit-outs, technology-facilitated designs, and hybrid workspace solutions are transforming India's contemporary office spaces.

 

India's urban population, which is expected to reach 600 million by 2030, will fuel demand for tailored workspaces, particularly in tier 1 and 2 cities.

 

Tanvi Shah, Director and Head of CareEdge Advisory and Research, says, "The office fit-out industry is likely to grow at a CAGR of 16 per cent in the next five years, led by multinational companies and high office space absorption in the IT, BFSI, and e-commerce sectors".

 

The interior fit-out sector is leading the charge with an emphasis on sustainability, technology, and people-focused designs. Also aiding the real estate sector are government efforts, like smart city initiatives, the report added.