India's real estate market to grow at 16% CAGR, set to touch $10 trillion by 2047: Report

India’s real estate sector is on track for unprecedented expansion, with a projected 16 per cent annual growth rate propelling the market to an estimated USD 10 trillion by 2047, according to a report by Colliers and the Confederation of Real Estate Developers' Associations of India (CREDAI). The findings were released during the CREDAI NATCON event in Sydney.

As India approaches its centenary year of independence, the report titled "Indian Real Estate: The Quantum Leap" highlights six critical growth levers: rapid urbanisation, infrastructure development, digitalisation, demographic shifts, sustainability, and investment diversification. These factors are expected to underpin the long-term transformation of the real estate sector, contributing significantly to the country’s economy.

Key Drivers of Growth

By 2050, urbanisation in India is expected to surpass 50 per cent, with the median age rising to around 40 years. This demographic shift will fuel demand for housing, retail, and office spaces, while emerging segments such as co-living, senior housing, and data centers are poised for exponential growth. The report predicts that the real estate sector will account for 14-20 per cent of India’s GDP by 2047.

Boman Irani, President of CREDAI National, said, "By 2047, half of India’s population will reside in urban centers, creating unprecedented demand for real estate. We foresee robust growth across residential, office, and retail markets, with alternative sectors like senior living and data centers experiencing rapid expansion."

Manju Yagnik, Vice Chairperson of Nahar Group and Senior Vice President of NAREDCO- Maharashtra, said, “According to the latest report by Colliers and CREDAI, the Indian real estate sector will undertake a revolutionary journey, with an overall index expected to hit $10 trillion by 2047. A couple of key parameters will form the backbone behind this growth, including rapid urbanization, median age increase, and the adaptation of technological advancements. On the government policy front, initiatives like Pradhan Mantri Awas Yojana (PMAY) will be key in encouraging demand in the housing market, especially the affordable housing space.”

“With sustainability and energy efficiency at the forefront of real estate development, developers must keep pace with an evolving modern-ecologically aware population while maintaining sight of the infrastructural requirements induced by such policies. This will be the phase of expansion where extensive diversification will happen due to the shift in consumer preferences and the regulatory requirements,” Yagnik added.

Regulatory and Infrastructure Reforms

India’s real estate growth will be bolstered by regulatory reforms such as the Real Estate (Regulation and Development) Act (RERA) and the introduction of Real Estate Investment Trusts (REITs). These initiatives have enhanced transparency, improved investor confidence, and streamlined sector operations. Additionally, government programs like Pradhan Mantri Awas Yojana (PMAY) and Gati Shakti are accelerating infrastructure development, creating real estate hotspots beyond Tier I cities.

Manoj Gaur, Chairman of CREDAI National, stressed the transformative role of these policies: "The government’s focus on affordable housing and infrastructure modernisation is driving real estate growth across urban and rural landscapes, creating new opportunities for developers, investors, and homebuyers alike."

Emerging Opportunities in Real Estate

The report also highlights the growing demand for industrial real estate, driven by infrastructure upgrades, including industrial corridors and logistics hubs. Asset classes like data centers, warehouses, and senior living accommodations are projected to witness strong institutional investment, while green financing options, including sustainability-linked bonds, are expected to become mainstream.

Badal Yagnik, CEO of Colliers India, remarked, “India’s real estate is set for a quantum leap, with opportunities across office, residential, and retail segments. The rise of over a hundred cities with populations exceeding a million will create dispersed growth centers, benefiting investors and developers alike.”

A Sustainable and Digital Future

The future of Indian real estate will be shaped by digitalisation and sustainability. PropTech innovations, including Metaverse integration, will enhance operational efficiency, while stricter regulations on sustainability will drive adoption of green-certified buildings. The report anticipates that the green-adoption rate in the office market could rise from 60-70 per cent to nearly 100 per cent within the next few years.