India's Housing Sales Projected to Reach 8-10 Lakh Units Annually by 2047
A Colliers-Credai report suggests that India's housing sales could surge to 8-10 lakh units annually by 2047, driven by rapid urbanization, infrastructure development, and growing employment opportunities.
Real EstateHousing SalesUrbanizationInfrastructureGdpReal Estate NewsSep 17, 2025
Demand for housing has surged post-pandemic, driven by homebuyers’ preference for larger, more spacious homes in peripheral areas of major cities. The luxury housing and second-home markets have also seen a significant uptick. The report, titled ‘Indian Real Estate: Fostering Equity and Fueling Economic Growth’, highlights that the number of housing units sold has grown rapidly since the year 2000, when less than 1 lakh units were sold annually, to around 3 lakh units annually by 2010.
The decade between 2010-2020 was marked by regulatory changes and unforeseen events that both regulated the sector and caused sales and launches to decline to historic lows. These events included the implementation of the Real Estate (Regulation & Development) Act (RERA), the introduction of Goods and Services Tax (GST), the Insolvency and Bankruptcy Code, and the COVID-19 pandemic. Despite these challenges, the sector has shown remarkable resilience, with record-breaking sales volumes in recent years.
Cities that have previously been under the radar, such as Delhi, and some parts of the National Capital Region (NCR) like Bengaluru, have significant potential for future growth. This growth is expected to help the sector achieve the projected 8-10 lakh unit annual sales by 2047. Ankur Jalan, CEO of Golden Growth Fund, a Category II real estate-focused alternative investment fund, noted that Delhi’s real estate sector will play a crucial role in the future. As the government creates more housing and office supplies, the backward migration of population into the national capital will help stabilize the northward movement of prices in the NCR region, particularly in Gurugram and Noida, leading to more affordable options for homebuyers.
The contribution of the real estate sector to India’s GDP has grown steadily, from under 5% in the early 2000s to 6-8% today. This is projected to reach 14-20% by 2047, positioning the sector as a potential $10 trillion growth catalyst. Bengaluru, often referred to as the silicon city, is among the most promising real estate markets. Despite challenges in urban infrastructure, the city is experiencing large-scale migration for high-paying jobs, particularly in the Global Capability Centers (GCCs) and domestic companies. The city’s peripherals are witnessing a surge in housing supply as end-user demand moves outward in search of serenity and peace.
Umesh Gowda HA, Chairman and Founder of Sanjeevini Group, stated that Bengaluru is on track to breach Rs 1 lakh crore in sales in 2025/26. Most of the demand in the city is end-user driven due to ample employment opportunities. The city is also seeing significant demand from micro-markets in the peripherals, which offer easy access and low-density living. For instance, Gunjur has witnessed a 69% average price growth in the last six years, compared to 62% in the prime area of Thannisandra Main Road.
More transformative policies and next-level infrastructure development will be key catalysts for the next wave of real estate growth. Vijay Harsh Jha, Founder and CEO of VS Realtors, a city-based property consultancy, noted that Gurugram has performed exceptionally well post-pandemic, both in terms of new micro-markets attracting investors and price appreciation. With the operationalization of the Noida International Airport and the development of accompanying infrastructure like metro rail, rapid rail, expressways, and highways, the region is poised for renewed interest, particularly in the outskirts of Gurugram.
The report also projects that office and industrial warehousing stock may exceed 2 billion square feet by 2047. The retail, hospitality, and alternative segments are expected to grow multi-fold, and the share of Real Estate Investment Trusts (REITs) in the real estate market capitalization is likely to reach 40-50% by 2047, up from the current 10%.
In summary, the Indian real estate sector is poised for substantial growth, driven by a combination of urbanization, infrastructure development, and economic expansion. The projected increase in housing sales to 8-10 lakh units annually by 2047 highlights the sector's importance in fueling India’s economic growth and improving the quality of life for millions of Indians.
Frequently Asked Questions
What factors are driving the growth in India's real estate sector?
The growth in India's real estate sector is driven by rapid urbanization, extensive infrastructure development, and an increase in employment opportunities, particularly in high-paying jobs in Tier I cities.
How many housing units are expected to be sold annually by 2047?
India’s housing sales are expected to reach 8-10 lakh units annually by 2047, up from the current 3-4 lakh units sold annually in 2025.
What regulations have impacted the real estate sector in the past decade?
The Real Estate (Regulation & Development) Act (RERA), the Goods and Services Tax (GST), the Insolvency and Bankruptcy Code, and the COVID-19 pandemic have all impacted the real estate sector, leading to both regulation and a decline in sales and launches.
Which cities are showing significant potential for future growth in the real estate sector?
Cities like Delhi, Bengaluru, and parts of the National Capital Region (NCR) such as Gurugram and Noida are showing significant potential for future growth in the real estate sector.
What is the projected impact of the real estate sector on India's GDP by 2047?
The contribution of the real estate sector to India’s GDP is projected to reach 14-20% by 2047, positioning the sector as a potential $10 trillion growth catalyst.
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