India's Real Estate Sector Poised to Reach $10 Trillion by 2047
A new report by Colliers and CREDAI projects that India's real estate sector will grow into a $5-10 trillion industry by 2047, driven by urban expansion, infrastructure growth, and demographic shifts.
Real EstateIndiaCredaiColliersUrban ExpansionReal EstateSep 11, 2025
The findings, unveiled at the CREDAI NATCON in Singapore, highlight how five structural forces—urban expansion, infrastructure growth, demographic shifts, digital transformation, and sustainability mandates—are converging to reshape India’s built environment.
The story of Indian real estate, which has evolved from a fragmented market in the 1990s to a more institutionalized and globally significant industry today, is set to accelerate further. Office towers, warehouses, malls, housing projects, hotels, data centres, and senior living homes will all be part of this expansionary wave, with each asset class undergoing rapid scale-up.
Offices and Warehousing: The 2 Billion Sq Ft Milestone
Among the strongest growth drivers will be Grade A offices and industrial & warehousing assets, both expected to exceed 2 billion sq ft of stock by 2047. The office market has already seen a threefold jump since 2010, reaching 800 million sq ft, buoyed by demand from Global Capability Centers (GCCs), BFSI majors, technology companies, and flexible workspace operators. With India strengthening its position as a global outsourcing and innovation hub, office real estate is expected to more than triple again, touching 2.5–3.0 billion sq ft by 2047.
Industrial and warehousing has followed a similar trajectory, growing from under 20 million sq ft in 2010 to more than 250 million sq ft today. Accelerated e-commerce penetration, infrastructure upgrades, and global supply chain diversification strategies are likely to push this figure to 2 billion sq ft or more by 2047.
“This is not just a story of square footage,” said Badal Yagnik, CEO, Colliers India. “The sector is expected to scale into a $5–10 trillion market by 2047. Office and industrial will continue to be the backbone of institutional real estate, but we’re also seeing new demand drivers emerge across alternate asset classes.”
Housing: Sales to Double as Affordability Rises
Residential demand has long been the heartbeat of Indian real estate. While the COVID-19 pandemic caused a temporary setback, the segment rebounded strongly, with record-breaking sales volumes in recent years. Looking ahead, housing sales are expected to double to 1 million units annually by 2047. Rising income levels, favourable demographics, and the government’s continued push for affordable and mid-segment housing will underpin this momentum.
India’s median age, projected to rise to 30–40 years by 2047, aligns with peak earning and consumption years. This demographic sweet spot, combined with policy interventions such as RERA and credit-linked subsidies, will expand both affordability and aspiration.
“By 2047, Indian real estate will not just be measured in asset values—it will be defined by the quality of life we create for millions of citizens,” said Shekhar Patel, President, CREDAI. “Our vision is to transform this sector into a model for the world, where rapid urbanisation and environmental responsibility can go hand in hand.”
Retail, Hospitality, and Alternatives: The Next Wave
Beyond core segments, retail, hospitality, and alternate assets are expected to see multi-fold growth. India, which had just three malls in 2000, now boasts over 750. By 2047, this number could double to over 1,500, driven not just by Tier I cities but also smaller towns with rising middle-class consumption. Hospitality assets, too, are expected to scale in tandem with domestic tourism and business travel.
Alternate segments such as data centres, senior living, and co-living are emerging as significant opportunities. Data centre capacity, currently at ~1.3 GW, is projected to touch 10–15 GW by 2047, driven by India’s digital-first economy and surging cloud demand. Senior living and co-living facilities, meanwhile, will respond to the twin trends of an ageing population and a younger, mobile workforce.
Urban Expansion and Infrastructure: The $2 Trillion Requirement
By 2050, nearly 900 million Indians—or 53% of the population—will live in urban areas, up from 37% today. This seismic shift will require cities to expand beyond their current boundaries and for new economic corridors to emerge. According to the Colliers–CREDAI report, more than half of the urban infrastructure needed by 2050 is yet to be built, requiring investments of over $2 trillion. Roads, metro systems, airports, logistics parks, and smart townships will be at the heart of this transformation.
“India is not just expanding its infrastructure; it is reimagining the future of urban living,” said Vimal Nadar, Head of Research, Colliers India. “Growth centres are shifting to Tier II & III cities, which will be the focal points of tomorrow’s economic story.”
Sustainability at the Core
With ambitious targets of 500 GW of renewable energy by 2030 and net-zero emissions by 2070, sustainability is no longer optional for Indian developers. From energy-efficient buildings and solar integration to eco-friendly construction materials, green practices are set to become mainstream. Colliers estimates that renewable integration could reduce 50–80% of CO₂ emissions in Indian cities by 2050. This will not only cut costs but also enhance the attractiveness of Indian assets for global investors increasingly focused on ESG mandates.
REITs: From 10% to 50% Market Share
Another key trend will be the rise of Real Estate Investment Trusts (REITs). From contributing barely 10% of market capitalisation today, REITs are expected to account for 40–50% by 2047. The office sector will continue to dominate REIT listings, with penetration expected to grow from 16% in 2025 to more than 60% by 2047. This will deepen institutional participation, improve transparency, and provide developers with a sustainable exit route.
A Cornerstone of India’s Growth Story
India’s GDP, valued at about $4 trillion today, is projected to expand to $35–40 trillion by 2047. At the core of this journey will be real estate, expanding from a $300 billion industry today to $5–10 trillion, with its GDP contribution rising to 14–20%. The sector’s transformation is more than a numbers game—it is about building climate-resilient cities, affordable yet aspirational homes, and ecosystems that reflect India’s evolving aspirations.
As CREDAI’s Patel put it, “The coming decades are an opportunity to not just build structures, but to build the India of tomorrow.”
Frequently Asked Questions
What are the key drivers of growth in India's real estate sector?
The key drivers include urban expansion, infrastructure growth, demographic shifts, digital transformation, and sustainability mandates.
How much is India's real estate sector projected to grow by 2047?
India's real estate sector is projected to grow into a $5-10 trillion industry by 2047.
What is the expected growth in office and warehousing space by 2047?
Both Grade A offices and industrial & warehousing assets are expected to exceed 2 billion sq ft of stock by 2047.
How will the residential housing market evolve by 2047?
Housing sales are expected to double to 1 million units annually by 2047, driven by rising income levels, favourable demographics, and government policies.
What role will sustainability play in the future of Indian real estate?
Sustainability will be a core focus, with ambitious targets for renewable energy and net-zero emissions, leading to the adoption of green practices and energy-efficient buildings.
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