Real Estate Market May Touch $10 Trillion By 2047 Driven By Rapid Urbanisation, Economic Growth: Report
The sector's share of India's total GDP is anticipated to rise to 14-20%.
The Indian real estate market is projected to reach $5-7 trillion by 2047, and could even approach $10 trillion, fueled by increasing economic growth and rapid urbanisation, according to a report.
On Monday, the real estate industry's apex body, CREDAI, and consultant Colliers India released their joint report titled 'Indian Real Estate: The Quantum Leap' at the CREDAI-NATCON conference.
Having contributed 6-8% to the GDP with a market size of $0.2 trillion in 2021, the real estate sector in India is expected to expand significantly, reaching $1 trillion by 2030, the report said.
The CREDAI and Colliers report estimates that by 2047, the market size of Indian real estate could range from $3-5 trillion in a pessimistic scenario, $5-7 trillion in a realistic scenario, and $7-10 trillion in an optimistic one. The sector's share of India's total GDP is anticipated to rise to 14-20%.
The report also predicted increased institutionalisation and consolidation across all real estate segments, along with the maturation of core assets like office and residential real estate, and notable growth in alternative assets such as data centers and senior living facilities.
Additionally, the real estate growth narrative will expand beyond the boundaries of large cities and reach multiple smaller cities, it added.
"With the interplay of dynamic factors such as rapid urbanisation, rising median age, and technological advancements, we are on the brink of a quantum leap, entering a new era of growth and diversification," said Boman Irani, president, CREDAI National.
By 2047, he said, an estimated 50% of India's population will reside in urban centres, creating unprecedented demand across residential, office, and retail spaces.
"As India navigates this exciting trajectory, the real estate sector will continue to attract institutional investments, fostering transparency, fair pricing, and global competitiveness," Irani said.
Manoj Gaur, Chairman, CREDAI National, said India has set its sight on becoming a $10 trillion real estate market, driven by the sector's ability to adapt and innovate.
"Landmark initiatives such as RERA and REIT regulations have enhanced transparency, improved investor confidence, and streamlined operations across the sector," he added.
These reforms, alongside critical programmes like PMAY and Gati Shakti, are creating a conducive environment for sustained real estate development, Gaur said.
Badal Yagnik, chief executive officer, Colliers India, said, "As India commences on a period of expansion across most economic sectors, real estate is set for a 'Quantum Leap', with multiple growth opportunities arising along the accelerated journey phase."
Favourable demographics and urbanisation trends are likely to accentuate the emergence of over hundred million-plus cities by 2047, he said.
This in turn presents a case for emergence of multiple real estate hotspots dispersed across the country, Yagnik said.
The report noted that this long-term growth in real estate is underpinned by six salient growth levers—rapid urbanisation, infrastructure development, digitalisation, demographic shifts, sustainability and investment diversification.
(With inputs from PTI).
