The Indian real estate market is projected to experience significant growth, potentially reaching a size of $5-7 trillion by 2047, and even up to $10 trillion, driven by robust economic growth and rapid urbanization, according to a joint report by CREDAI and Colliers India. The report, titled “Indian Real Estate: The Quantum Leap,” was unveiled during the CREDAI-NATCON conference.
Currently contributing 6-8% to the GDP, with a market size of $0.2 trillion in 2021, the real estate sector is expected to expand substantially, aiming for a valuation of $1 trillion by 2030. The report outlines three scenarios for 2047: a pessimistic estimate of $3-5 trillion, a realistic projection of $5-7 trillion, and an optimistic outlook reaching $7-10 trillion. It anticipates that the real estate sector’s share of India’s total GDP could rise to 14-20%.
The report emphasizes the expected consolidation and institutionalization across various real estate segments, forecasting the maturation of core assets such as office and residential spaces, alongside substantial growth in alternative sectors like data centers and senior living facilities. It also notes that the growth narrative will extend beyond major cities to encompass smaller urban centers.
Boman Irani, President of CREDAI National, highlighted that by 2047, around 50% of India’s population is expected to live in urban areas, creating enormous demand for residential, office, and retail spaces. He remarked that as India embarks on this transformative journey, the real estate sector will attract institutional investments, fostering transparency, fair pricing, and global competitiveness.
Manoj Gaur, Chairman of CREDAI National, stated that India aims to evolve into a $10 trillion real estate market, fueled by the sector’s adaptability and innovation. He noted that landmark initiatives like RERA and REIT regulations have significantly improved transparency, bolstered investor confidence, and streamlined industry operations. These reforms, coupled with vital programs such as PMAY and Gati Shakti, are fostering a supportive environment for sustained real estate growth.
Badal Yagnik, CEO of Colliers India, remarked that as India enters a period of expansion across various economic sectors, the real estate market is poised for a “Quantum Leap,” presenting numerous growth opportunities. Favorable demographics and urbanization trends are expected to lead to the emergence of over a hundred cities with populations exceeding one million by 2047, creating multiple real estate hotspots throughout the country.
The report identifies six key growth drivers underpinning the long-term expansion of the real estate sector: rapid urbanization, infrastructure development, digitalization, demographic shifts, sustainability,and investment diversification.
