Indian Real Estate Set to Reach USD 5-10 Trillion, Driving 14-20% of GDP by 2047
The Indian real estate sector is poised for significant growth, with projections indicating it could reach USD 5-10 trillion by 2047, contributing 14-20% to the nation's GDP. Key drivers include rapid urbanisation, large-scale infrastructure development, and rising demand for affordable housing.
Real EstateGdpUrbanisationInfrastructureAffordable HousingReal Estate NewsSep 12, 2025
The report highlights four critical drivers of this growth: rapid urbanisation, large-scale infrastructure development, affordable housing demand, and digital transformation. These factors are expected to drive the sector's expansion and modernisation, making it a more organised and strategic contributor to national development.
Badal Yagnik, Chief Executive Officer of Colliers India, commented, 'India's real estate sector is at the forefront of the country's inclusive progress and is expected to scale into a USD 5-10 trillion market by 2047. Fuelled by supportive policies, envisaged demand traction, and rising developer as well as investor interest, Indian real estate is poised for decades of growth acceleration across most asset classes. Interestingly, both the Grade A office and industrial stock of the country is expected to surpass the 2 billion sq ft mark by 2047. Residential sales could meanwhile double up to 1 million units annually.'
The real estate narrative is becoming more balanced, equitable, and inclusive, extending from established Tier I cities to emerging Tier II and III cities. The report charts the growth across real estate asset classes from the 1990s to the present day and forecasts the trajectory until 2047, the centennial year of India's independence. While Indian real estate has already transformed from a largely fragmented sector to a more organised and strategic contributor, the upcoming decades are likely to be characterised by quantum growth fuelled by rising institutionalisation and strong investor appetite.
Rapid urbanisation and infrastructure development are key drivers of India's real estate sector. Indian cities are urbanising rapidly, and it is projected that over 90 crore people or 53% of the country's population will live in urban areas by 2050. To accommodate this, urban development needs to expand beyond metro and tier-1 cities to tier-2 and tier-3 cities.
Shekhar Patel, President of CREDAI, said, 'By 2047, Indian real estate will not just be measured in square feet or asset values—it will be defined by the quality of life we create for millions of citizens. The sector is uniquely positioned to reimagine India's urban future: designing climate-resilient cities, building affordable yet aspirational homes, and nurturing ecosystems that foster innovation and inclusivity. As CREDAI, we see real estate as the foundation of India's journey toward becoming a developed economy—where every new home, office, or warehouse contributes to social equity and sustainable growth.'
Frequently Asked Questions
What is the projected size of the Indian real estate sector by 2047?
The Indian real estate sector is projected to reach USD 5-10 trillion by 2047.
What percentage of India's GDP is the real estate sector expected to contribute by 2047?
The real estate sector is expected to contribute 14-20% to India's GDP by 2047.
What are the key drivers of growth in the Indian real estate sector?
The key drivers of growth in the Indian real estate sector are rapid urbanisation, large-scale infrastructure development, affordable housing demand, and digital transformation.
How many people are expected to live in urban areas in India by 2050?
Over 90 crore people or 53% of India's population are projected to live in urban areas by 2050.
What is the role of CREDAI in the Indian real estate sector?
CREDAI (Confederation of Real Estate Developers' Association of India) plays a crucial role in promoting the development of the real estate sector, focusing on creating climate-resilient cities, affordable housing, and fostering innovation and inclusivity.
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