The base of Indian real estate market, growing at 30 per cent, is likely to touch $90 billion by 2015 from $14 billion at present. This pace will help the economy sustain its growth between 9 and 10 per cent, said an Assocham report.

The additional requirement of 370 million sq ft of space in urban areas by 2010 by sectors like IT, ITeS, financial services and organised retail alone has made the real estate most lucrative, providing returns ranging from 20 to 30 per cent.

The chamber president, Venugopal N Dhoot in a statement said, “While $10 billion is expected to flow into the sector by 2008-end, it might reach $15 billion per annum by 2010”. Repealing the Urban Land (Ceiling & Regulation) Act 1976, rescinding of the Rent Control Act and increasing floor-area-ratio would give further boost to the sector, he added.

According to the chamber report, IT and ITeS, banking and financial services have in particular created a huge demand for office space. IT and ITeS alone is expected to require 150 million sq ft across urban India by 2010. Services too are expected to clock a double-digit growth in the future, keeping the demand of office space robust. Analysts pegged the total demand for commercial office real estate in Bangalore, Chennai, Delhi-NCR, Mumbai, Pune, Hyderabad and Kolkata to be over 25 million sq ft in 2006. The year 2006-07 witnessed organised retail growing at a pace of 25-30 per cent.