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
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