India’s Real Estate Sector Set to Reach $1 Trillion by 2030: CREDAI President
CREDAI President Shekhar Patel predicts a strong rebound in the real estate market by July-August 2025, with the sector projected to reach $1 trillion by 2030. Key drivers include residential, commercial, and emerging formats like co-living and senior housing.
Real EstateCredaiGrowthSustainable DevelopmentTechnologyReal Estate NewsJun 16, 2025
In an exclusive interview with Moneycontrol on June 13, Patel said that the country’s real estate sector is standing at the cusp of a defining transformation. India recently overtook Japan to become the world’s fourth-largest economy, signaling not just macroeconomic strength but also immense opportunities for sectors like real estate.
Patel was appointed as the president of CREDAI in April 2025. He stated that the real estate market, which has shown signs of consolidation, is likely to bounce back strongly by July-August 2025. He remains optimistic about the sector's long-term growth.
Patel outlined his projections for the overall growth of the residential and commercial segments in the fiscal year 2026 and beyond. India’s real estate sector is poised to grow from $320 billion to $1 trillion by 2030, contributing 13-15 percent to the GDP. The commercial real estate sector is seeing sustained momentum due to the growth in India’s service sector, which contributes over 55 percent to the GDP. Real Estate Investment Trusts (REITs) and Small and Medium REITs (SMREITs) are expected to further bolster this segment.
While luxury homes are seeing periodic fluctuations, affordable and mid-segment housing remain long-term growth drivers, especially if pricing policy reforms are implemented. In 2012, the sector contributed just 1.8 percent to 2 percent to India’s GDP. Today, it stands at 8.4 percent, and Patel expects it to exceed 10 percent by 2030. This growth aligns with India's ambition to become a $30 trillion economy by 2047.
As the newly appointed National President of CREDAI, Patel outlined a five-point agenda to drive the sector forward over the next five years. These priorities include skilling of the workforce, sustainability and reforestation, a push for affordable housing, digitization and data analytics, and ease of doing business.
The construction sector is one of the largest job creators in India, and CREDAI plans to scale up skilling efforts by training 1 lakh workers annually through a structured, 10-day certified on-site program. Recognizing the need for climate-resilient infrastructure, CREDAI is championing reforestation efforts in ecologically sensitive zones, such as the Western Ghats and Aravalli Hills. The organization is also developing its own green building certification framework to incentivize eco-friendly construction across member-projects.
The current definition of affordable housing, decided in 2017, caps prices at Rs 45 lakh. However, due to inflation and rising input costs, this cap is outdated. Today, even a 90 square metre home costs Rs 70–80 lakh in many cities, excluding it from the affordable category. CREDAI is urging the government to revise the definition, remove price caps, and focus on area-based criteria. Additionally, they propose credit guarantee schemes for homebuyers, similar to those for MSMEs (Micro, Small and Medium Enterprises), to encourage affordable homeownership.
On the ease-of-doing-business front, CREDAI is advocating a 100-day project approval timeline—down from the current 7-year cycle—by promoting digital clearances and fast-tracking the adoption of precast and prefab technologies to deliver faster, more efficient housing solutions.
Since the start of 2025, the real estate market has shown signs of consolidation or cooling down. However, Patel remains optimistic about the sector's long-term growth. He noted that the Indian economy and its industries, including real estate, have shown strong resilience, whether during the COVID-19 pandemic or amid recent geopolitical tensions. Over the past six months, there has been a positive shift, and he expects the market to bounce back strongly by July-August 2025.
Patel also emphasized the role of technology in transforming the real estate industry. The integration of PropTech solutions, such as AI-driven project management tools, 3D printing, and precast and prefabrication, is revolutionizing construction. These innovations address skilled labor shortages, reduce delivery timelines, and ensure faster, cost-effective, and high-quality development with reduced on-site workforce dependencies, enhancing overall operational efficiency. CREDAI is actively championing the adoption of modern construction technologies across its developer ecosystem.
CREDAI has spoken about carbon neutrality and sustainability goals. Patel outlined concrete steps being taken on this front. The organization strongly believes that development and sustainability must go hand in hand. As the infrastructure and real estate sectors grow, pollution concerns and environmental stress will rise. To offset this, CREDAI is focusing heavily on reforestation. The goal is to develop 1 lakh acres of forest in the next five years. The organization has started with a 9,000-acre reforestation project at Trimbakeshwar in Nashik, which began this month.
Frequently Asked Questions
What is the projected growth of India's real estate sector by 2030?
India’s real estate sector is projected to grow from $320 billion to $1 trillion by 2030, driven by residential, commercial, and emerging formats like co-living and senior housing.
What are the key drivers of the commercial real estate sector in India?
The commercial real estate sector is seeing sustained momentum due to the growth in India’s service sector, which contributes over 55 percent to the GDP. Real Estate Investment Trusts (REITs) and Small and Medium REITs (SMREITs) are expected to further bolster this segment.
What are the five-point priorities outlined by CREDAI for the real estate sector?
The five-point priorities include skilling of the workforce, sustainability and reforestation, a push for affordable housing, digitization and data analytics, and ease of doing business.
How is technology transforming the real estate industry?
The integration of PropTech solutions, such as AI-driven project management tools, 3D printing, and precast and prefabrication, is revolutionizing construction. These innovations address skilled labor shortages, reduce delivery timelines, and ensure faster, cost-effective, and high-quality development.
What are CREDAI's sustainability goals?
CREDAI is focusing heavily on reforestation, aiming to develop 1 lakh acres of forest in the next five years. They are starting with a 9,000-acre reforestation project at Trimbakeshwar in Nashik.
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