India's Real Estate Market Set to Reach $10 Trillion by 2047
India's real estate market is expected to grow at a massive 16% annually to hit USD 10 trillion by 2047, driven by six key factors.
Indian Real EstateReal Estate MarketGrowth DriversInfrastructureDigital TransformationSustainabilityDiversified InvestmentsTier Ii Iii CitiesReal EstateSep 25, 2024
Rapid urbanisation will be a major driver of growth, with over half of India's population expected to live in cities by 2050. This will lead to a massive demand for housing, offices, and retail spaces, especially in cities like Mumbai, Delhi, and Bangalore. Smaller towns and peripheral urban areas will also emerge as real estate hotspots.
India's infrastructure overhaul will also play a significant role in driving growth. Projects like the Gati Shakti Master Plan, industrial corridors, and the Golden Quadrilateral will trigger a wave of real estate development in tier II & III cities, bringing modern amenities and commercial hubs to these areas.
The digital transformation will also reshape the Indian real estate landscape. Data centres will emerge as a high-growth asset class, catering to India's data boom.
Shifting demographics will also drive demand for real estate. By 2050, the median age will rise to around 40, with the urban population hitting 50%. This will lead to a surge in demand for starter homes, senior living communities, and other age-specific housing.
Sustainability will take centre stage in the Indian real estate market, with developers adopting eco-friendly designs and green certifications becoming the norm.
Finally, diversified investments will also play a significant role in driving growth. Foreign investments in Indian real estate have already crossed USD 60 billion over the past decade, and institutional investors are now eyeing not just residential properties but also assets like data centres, senior living, and healthcare facilities.
New real estate segments like senior living, co-living, and data centres will also emerge as major growth drivers. Senior living communities will cater to the growing ageing population, co-living spaces will be a hit with young professionals, and data centres will boom due to the increasing demand for digital services.
Tier II & III cities will emerge as the new growth engines of the Indian real estate market. Cities like Lucknow, Surat, and Coimbatore will see a real estate boom driven by affordable housing, business opportunities, and infrastructure developments.
By 2047, India's real estate market is expected to contribute up to 20% of the country's GDP, making it a cornerstone of the economy.
About Colliers Colliers is a leading global real estate services company, providing a range of services including advisory, valuation, and management.
About CREDAI CREDAI is the apex body for private real estate developers in India, representing over 20,000 developers across the country.
Frequently Asked Questions
What is the projected growth rate of India's real estate market?
16% annually
What are the six key factors driving growth in India's real estate market?
Rapid urbanisation, infrastructure overhaul, digital transformation, shifting demographics, sustainability, and diversified investments
What is the expected contribution of the real estate market to India's GDP by 2047?
Up to 20%
What are the new real estate segments that will emerge as major growth drivers?
Senior living, co-living, and data centres
Which cities will emerge as the new growth engines of the Indian real estate market?
Tier II & III cities like Lucknow, Surat, and Coimbatore
Tags:
Related News Articles
Mumbai Real Estate Developer and CEO Embroiled in ₹13.65 Crore Fraud Case
A Mumbai-based real estate developer and CEO have been booked for allegedly forging documents and duping a partner of ₹13.65 crore in a Bhandup land deal.
Mumbai Property Registration Revenue Surges 52% YoY to Rs 1,081 Crore This Diwali
According to data from the Inspector General of Registration (IGR), Maharashtra, property registrations in Mumbai witnessed a remarkable 22% year-over-year increase, with 11,861 homes registered in October 2024, compared to 9,736 in November 2023.
AI Bubble Deflating: Zoho's Sridhar Vembu Stresses Importance of Real Engineering Work
Zoho CEO Sridhar Vembu discusses the potential deflation of the AI bubble and emphasizes the enduring importance of real engineering work in the tech industry.
ED Seizes ₹19.61 Crore from Karrm Developers Linked to Vivek Oberoi in Real Estate Scandal
The Enforcement Directorate (ED) in Mumbai has taken action against Karrm Developers, a real estate firm associated with actor Vivek Oberoi, by seizing assets worth ₹19.61 crore. The action is part of an ongoing investigation into financial misconduct in the affordable housing sector.
Mumbai Sees Record-Breaking Property Registration in March 2025
Mumbai witnessed a surge in property registration in March 2025, driven by the impending hike in reckoner rates set to take effect from April 2025. This surge highlights the robust demand in the city's real estate market.
Private Equity Investments Fuel 133% Surge in Real Estate Deal Volumes in Q1 2025
Real estate deal volumes soared by 133% in the first quarter of 2025, driven predominantly by private equity (PE) investments, which accounted for 88% of the total transactions.