New Delhi: India’s real estate sector, which contributed 7.3 per cent to the GDP in the calendar year 2023, is projected to contribute 13 per cent to the country’s economic growth by 2030, a report showed on Friday.
The sector is set to grow from Rs 40 lakh crore in 2023 to Rs 83 lakh crore by 2030, driven by urbanisation, rising incomes and government initiatives like ‘Housing for All’ and ‘Real Estate Regulatory Authority’ (RERA), according to the report by CareEdge Ratings.
The commercial real estate segment is bouncing back, with office leasing activity hitting 71.9 million square feet in 2024, driven by IT, BFSI, and multinational corporations.
The sector is further projected to grow at a robust CAGR of 15.4 per cent through 2030.
Bengaluru, Delhi-NCR and Mumbai led this growth, with Hyderabad and Pune emerging as hubs. The rise of Global Capability Centres (GCCs), hybrid work models and coworking spaces largely supported this growth momentum.
The interior fit-out market, a vital part of commercial real estate, is set to grow from Rs 277 billion in 2023 to Rs 805 billion by 2030, reflecting a robust CAGR of 16.5 per cent, the report mentioned.
Emerging trends like green fit-outs, tech-enabled designs, and hybrid workspace solutions are redefining modern office environments in India.
India’s urban population, projected to reach 600 million by 2030, will drive demand for customised workspaces, especially in tier 1 and 2 cities.
Tanvi Shah, Director and Head of CareEdge Advisory and Research, states, “The office fit-out sector is expected to grow at a CAGR of 16 per cent over the next five years, driven by multinational corporations and high office space absorption in the IT, BFSI, and e-commerce sectors.”
The interior fit-out industry is driving innovation with a focus on sustainability, technology, and employee-centric designs. Additionally, government initiatives, such as support for smart cities, are beneficial to the real estate industry, the report mentioned.