According to property consultancy firm CIRIL, Indian real estate market is expected to grow to Rs 65,000 crore (USD 9.3 billion) by 2040. In 2019, the size of the real estate market was Rs 12,000 crore, according to the report.
Despite fears related to the Omicron crisis, the market in 2022 looked bullish while demand is accelerating across all categories, the report said.
Regarding commercial real estate, the report said offices with enhanced technology driven ecosystem in workplace will be in demand and developers are investing in technology and digital channels to reach out to the consumers. Co-working space has emerged as a sustainable business model for corporates who want to remain flexible on cost components on the face of a possible resurgence of COVID caseloads, the report said.
India’s retail industry is projected to grow at a slower pace of nine per cent during the period 2021 to 2030 and is likely to touch USD 1400 billion by 2026. CIRIL said that Indians are taking to online retail in a big way, and by 2024, the country’s e-commerce industry is likely to touch USD 111 billion, driven by mobile shopping.
The warehousing RE sector will continue to grow as e-commerce has gained traction, and the transactions in this sector are projected to grow at a compounded annual growth rate (CAGR) of 20 per cent in FY 2023, the report stated. The e-commerce part in the total warehousing transactions will increase to 36 per cent in FY 2023.