The Indian real estate sector is projected to be a $10 trillion market by 2047, while its share in India’s gross domestic product (GDP) is estimated to increase to 14–20% during this period, according to a report by Colliers and the Confederation of Real Estate Developers’ Associations of India (Credai).
The report highlights six salient growth levers which includes, rapid urbanization, infrastructure development, demographic shifts, digitalization, sustainability and investment diversification; all of which will form the bedrock for a quantum leap in Indian real estate by 2047. These growth ingredients will be pivotal in the expansion of Indian real estate.
Various real estate segments will evolve and continue to proliferate, growing and maturing by varying degrees. Core assets such as office & residential real estate are likely to mature further and alternative assets such as data centers & senior living will embark upon strong growth trajectories. Market consolidation, fair-pricing and institutionalization will become more pervasive across asset classes, especially in the industrial & warehousing segment.
“With the interplay of dynamic factors such as rapid urbanization, rising median age, and technological advancements, we are on the brink of a quantum leap, entering a new era of growth and diversification. By 2047, an estimated 50% of India’s population will reside in urban centers, creating unprecedented demand across residential, office, and retail spaces. Alternative segments like senior living, co-living, and data centers will also witness exponential growth, driven by evolving consumer preferences and technological integration, with a focus on sustainability and energy efficiency becoming a standard across developments. As India navigates this exciting trajectory, the real estate sector will continue to attract institutional investments, fostering transparency, fair pricing, and global competitiveness” stated Boman Irani, president, Credai National.
The report also projected foreign capital flow enhancement over the years due to strong domestic growth prospects, improvements in ease of doing business, and continual FDI relaxations. It also noted that the initiatives like real estate regulatory authority (Rera) and real estate investment trusts (Reits) regulations have enhanced transparency, improved investor confidence, and streamlined operations across the sector.
