India’s real estate market is projected to reach $10 trillion by 2047, contributing up to 20% of the nation’s GDP. Rapid urbanisation, foreign investments, and technological advancements will fuel growth. Sustainability and PropTech will play pivotal roles, with reforms like RERA and REITs driving future Expansion.
India’s real estate sector is on the verge of significant growth, with projections estimating it to become a $10 trillion market by 2047, according to a joint report by Colliers and the Confederation of Real Estate Developers’ Associations of India (CREDAI). Currently contributing around 7.3% to the nation’s GDP, the sector’s share is expected to increase to 14-20% over the next few decades, making it a critical driver of its economic development.
Urbanisation and Demographic Shifts Fuel Growth
As India’s urban population is projected to reach 50% by 2047, demand for residential, office, and retail spaces will rise sharply. The report emphasises that rapid urbanisation and infrastructure development will extend beyond Tier-I cities, leading to new real estate hotspots in Tier-II and III towns. The shift is expected to be driven by demographic changes, with India’s median age reaching around 40 by 2050. This will increase demand for housing, senior living, and emerging asset classes such as co-living spaces and data centres.
Institutional Investments and Foreign Capital Boost Expansion
Over the past decade, institutional investments in Indian real estate have surpassed $60 billion, primarily driven by foreign investors. This influx is expected to continue as relaxed FDI norms and improvements in ease of doing business attract more foreign capital. “Enhanced foreign capital inflows are set to sustain, with green financing, bonds, and venture capital funds becoming key funding strategies,” the report states. This trend is likely to diversify funding options and further boost growth in the real estate sector.
Technology and Sustainability Lead the Future
The future of India’s real estate market will be shaped by technology and sustainability. PropTech innovations and the integration of Metaverse technology are expected to elevate the sector to global standards. Sustainability is also set to play a crucial role, with green certifications becoming standard in office spaces. “Real estate developments will increasingly focus on energy efficiency, with 100% green adoption anticipated in the coming years,” the report highlights.
Key Reforms Set the Stage for Growth
India’s real estate sector has undergone significant transformation through reforms such as the Real Estate Regulation and Development Act (RERA) and Real Estate Investment Trusts (REITs). These reforms have improved transparency and investor confidence, allowing continued growth.
As the sector evolves, it is poised to become a key driver of India’s economy, contributing substantially to the nation’s GDP. With demographic shifts, technological advancements, and sustainable practices at its core, India’s real estate market is positioned for an exponential rise by 2047, playing a pivotal role in the country’s economic future.
Conclusion
India’s real estate market is set to transform into a $10 trillion powerhouse by 2047, driven by urbanisation, institutional investments, and the adoption of technology and sustainability. As it expands, the sector is expected to become one of the most significant contributors to India’s economic growth over the next few decades.
