Indian Housing Market Set to Soar: 5-10% Annual Price Growth Expected
Housing prices in India are expected to appreciate by 5-10% annually over the next few years, according to a joint report by the Confederation of Indian Industry (CII) and property consultant Colliers India. This projection is based on a robust increase in demand, driven by rising income levels, demographic shifts, and progressive housing policies.
The report, titled 'Real Estate @2047: Building India's Future Growth Corridors', was released during a conference. Harleen Kaur, Deputy Secretary of the Ministry of Road Transport and Highways, was present at the event.
Annual sales are projected to double, reaching 1 million housing units by 2047, up from the current 300,000-400,000 units. The report highlights that this growth will be supported by improved infrastructure, government incentives for homebuyers, and a growing preference for reputable developers.
Furthermore, the demand for premium housing in urban areas is expected to drive average property prices to grow at 5-10% annually over the next few years. This trend is not limited to Tier I cities; Tier II and III cities, including spiritual hotspots, are also poised for a sustained rise in housing demand in the coming decades.
The Indian real estate market size is projected to surge from $0.3 trillion in 2025 to $5-10 trillion by 2047. Harleen Kaur emphasized that India's infrastructure expansion is reshaping the real estate landscape, unlocking new growth corridors and transforming Tier II and III cities.
Kaur stated, 'India's infrastructure expansion is reshaping the real estate landscape, unlocking new growth corridors and transforming Tier II and III cities. As we march towards a multi-trillion-dollar economy, the demand for world-class built structures, integrated logistics hubs, and resilient mobility solutions, including transit-oriented development (TOD) systems, will become more prominent.'
She noted that the real estate and infrastructure sectors are vital and will reinforce each other. 'Expressways and industrial corridors will increasingly enhance connectivity, transforming land usage in catchment areas, accelerating urban development, and creating commercially viable economic hotspots,' Kaur added.
Pradeep Aggarwal, Founder and Chairman of Signature Global India Ltd., emphasized the need for continuous tech adoption in real estate and infrastructure to ensure sustainable growth. 'The ongoing real estate transformation will be characterized by significant scaling up across asset classes. In addition to demand traction in core assets such as office, residential, and industrial and warehousing, we anticipate quantum growth in alternative asset classes such as data centers and shared living,' said Badal Yagnik, Chief Executive Officer and Managing Director of Colliers India.
The report also highlights the importance of sustainable development and the role of technology in shaping the future of the Indian real estate market. With the right policies and investments, India is well-positioned to achieve significant growth in the real estate sector, contributing to its overall economic development.
