India's Real Estate Market Poised for 20X Growth by 2047: Colliers-CII Report

India’s real estate sector is on the brink of a monumental transformation, projected to grow from nearly USD 0.3 trillion today to a staggering USD 5–10 trillion market by 2047. This surge positions real estate as a cornerstone of India’s economic ascent, potentially contributing 14–20% of the GDP by 2047, aligning with the vision of Viksit Bharat under the Amrit Kaal roadmap.

The Confederation of Indian Industry (CII) and Colliers report titled “Real Estate @2047: Building India’s Future Growth Corridors” was recently released at the 21st edition of CII Realty 2025. The report highlights near-term trends and overarching growth themes across core segments—residential, office, retail, industrial & warehousing, and emerging alternative asset classes like senior living, co-living, and data centers. These trends are powered by government-led reforms, policy initiatives, and structural demand drivers such as rapid urbanization, demographic shifts, infrastructure augmentation, technology-driven innovation, and sustainability priorities.

Ms Harleen Kaur, Deputy Secretary, Ministry of Road Transport and Highways, Government of India, emphasized that India’s infrastructure expansion is reshaping the real estate landscape, unlocking new growth corridors and transforming Tier II & III cities. She noted, “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. Real estate and infrastructure are two vital sectors that will reinforce each other.”

Mr Pradeep Aggarwal, Founder & Chairman, Signature Global India Ltd., highlighted the progress made over the past decade, stating, “Consistent policy support has laid the foundation for accelerated growth across sectors, including real estate. Policy push in the form of PMAY, RERA, infrastructure status to affordable housing, and the SWAMIH fund have improved housing accessibility and last-mile financing while enhancing transparency.”

Mr Ashwinder R Singh, Chairman, CII NR Committee on Real Estate and Vice Chairman & CEO, BCD Group, added, “India’s real estate sector is on a transformative trajectory, poised to grow from nearly USD 300 billion today to a USD 1 trillion industry by 2030 and potentially reach USD 5–10 trillion by 2047. Urbanization and infrastructure development are driving this momentum, with 40% of India’s population expected to reside in urban areas in the next few years.”

Badal Yagnik, Chief Executive Officer & Managing Director, Colliers India, emphasized the significant scaling up across asset classes, including data centers and shared living. He stated, “With nearly 100 million-plus cities expected to champion the case for equitable economic growth, newer real estate growth corridors will gain prominence. These emerging growth frontiers will redefine India’s urban fabric, creating inclusive, future-ready, and sustainable real estate hotspots.”

The residential segment is expected to see the most pronounced impact from rapid urbanization and evolving demographics, particularly in affordable, senior, and co-living spaces. Meanwhile, commercial and industrial segments stand to benefit from enhanced infrastructure-led connectivity, digitalization, and green mandates, which will support the decentralization of office hubs and manufacturing clusters across Tier II & III cities. Technological advancements, especially in AI, will drive the growth of data centers and smart city infrastructure.

India’s office market is set for a sustained expansion, with annual demand expected to stabilize at 70–75 million sq ft in the next few years. Grade A stock is projected to surpass 1 billion sq ft by 2030 and potentially breach 2 billion sq ft by 2047. The maturity of the Indian office market will be marked by hybrid work models, hub-and-spoke office formats, and the rise of Global Capability Centers (GCCs) driving high-value innovation and digital transformation. Annual GCC leasing is projected to be around 30-40 million sq ft in the coming years, driving 40-50% of the annual Grade A office demand.

The residential real estate market is expected to witness a significant surge in demand, reaching 0.5 million units annually by 2030 and potentially doubling to 1 million housing units by 2047. With the median age steadily increasing to 30-40 years in the next few decades, first-time homebuyers are likely to dominate demand. In addition to the affordable segment, luxury housing and niche offerings for High-Net-Worth Individuals (HNIs) & Ultra-HNIs will gain traction, alongside plotted developments, villas, and wellness-oriented living spaces. Tier II/III cities, including spiritual hubs, are already emerging as vibrant housing markets amidst rapid urbanization and infrastructure upgrades.

The industrial & warehousing segment is poised for significant momentum, with annual demand expected at 30–40 million sq ft in the coming years. With Grade A stock projected to exceed 0.5 billion sq ft by 2030 and potentially 2 billion sq ft by 2047, India’s warehousing landscape will become smarter and greener, supported by the development of industrial corridors and logistics parks. We also anticipate heightened warehousing requirements for micro-fulfillment centers, dark stores, and plug-and-play facilities in upcoming years.

India’s retail segment is set to capitalize on rising urbanization and improving consumption levels. Malls are already evolving into lifestyle destinations, with brands focusing on immersive store formats and omnichannel strategies. With over 1,000 malls across Indian cities by 2030, which is likely to rise further and cross 1,500 by 2047, retail space uptake will be comparatively higher in smaller cities like Jaipur, Ahmedabad, Kochi, Coimbatore, Bhubaneswar, and Guwahati. Moreover, institutionalization and the rise of retail REITs will further formalize the segment.

While core assets will be central to the growth story of Indian real estate, alternative assets like data centers, senior living, and co-living have a greater headroom for growth in the coming years. India’s data center capacity is expected to scale significantly, reaching nearly 4.5 GW by 2030 and surging to 10 GW by 2047—driven by policy-level push, rising adoption of AI, cloud & edge computing, 5G rollout, and green energy integration. Senior and co-living will also see multi-fold growth driven by demographic shifts and evolving lifestyle needs. Inventory in both these segments is likely to rise at least 10X times each over the next few decades.

The multiplier effect of policy initiatives, infrastructure development, and inherent demand drivers is set to catalyze Indian real estate, propelling it to a USD 5-10 trillion market by 2047, a growth of over 20X times compared to current levels. Driven by rapid urbanization, India can potentially have nearly 100 cities with a million-plus population by 2047. In addition to India’s demographic patterns amplifying consumption levels—infrastructure development, digitalization, tourism growth, and sustainability priorities can elevate the real estate landscape across multiple cities and asset classes.

In fact, multiple Tier II & III cities are poised for accelerated real estate activity across multiple segments. These upcoming real estate hotspots will mature into economic hubs, fostering balanced and inclusive growth in the run-up to India’s centennial year of independence in 2047. With India’s real estate poised for growth, the focus will be on building future-ready, sustainable, and inclusive cities that cater to the needs of a rapidly evolving population.