Real Estate Market in India Could Reach $10 Trillion by 2047, Says Report

Real Estate Market in India

The real estate market in India is expected to grow significantly, with estimates predicting it will reach $10 trillion by 2047, according to a report by Colliers and CREDAI. Several factors are driving this growth, including rapid urbanization, infrastructure development, digitalization, and demographic changes. The sector, currently valued under a trillion dollars, is likely to become a major contributor to the country’s GDP. Which is accounting for 14-20% of the total by 2047.

Urban Growth to Drive Real Estate Expansion

By 2047, about 50% of India’s population is expected to live in urban areas. This shift will increase the demand for housing, office spaces, and retail properties across the country. As India moves toward this urban future, various segments of the real estate market in India are set to evolve, especially in core assets like office and residential spaces. New asset types such as data centers and senior living will also experience strong growth, driven by shifting consumer preferences and increased urbanization.

Emerging Real Estate Hotspots

As the country urbanizes, real estate development will extend beyond large cities. Smaller towns and the outskirts of major cities are projected to witness rapid growth in various real estate sectors. This trend will create multiple real estate hubs across the country. Additionally, the rising demand for housing will be driven by young, first-time homebuyers, while an aging population will lead to increased interest in senior living developments. This growth will further boost the real estate market in India across different regions.

Key Factors Influencing Real Estate Growth

The report highlights several factors contributing to the growth of the real estate market in India. Infrastructure improvements, such as new roads, bridges, and industrial corridors, will help to connect remote areas and smaller cities to major urban centers, boosting property development in those regions. Furthermore, India’s real estate market is expected to mature over the coming decades as alternative investments, like REITs (Real Estate Investment Trusts), become more common. This will include investments in not only office and retail spaces but also in warehouses, hotels, and residential properties.

Sustainability and Technology to Play a Central Role

In the future, sustainability will be a key focus for the Indian real estate sector. Developers are likely to embrace energy-efficient practices and green building technologies to meet growing consumer demand for sustainable living. Additionally, the adoption of digital tools, including PropTech and Metaverse technologies, will modernize the planning, construction, and management of properties, enhancing transparency and efficiency in the sector.

Institutional Investments Expected to Rise

India has seen over $60 billion in institutional investments in the real estate sector over the last decade. Much of this investment has come from foreign entities, and this trend is expected to continue. The report also predicts a rise in domestic investments, which will contribute to the adoption of alternative funding strategies, such as green bonds and venture capital.

Conclusion

As India approaches 2047, real estate market in India is positioned for substantial growth. Factors like urbanization, technological advancements, and infrastructure improvements will continue to drive this expansion. The real estate market in India is not only poised to reach $10 trillion but also to become a more sustainable, transparent, and competitive sector in the global market.

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