INDIA’S REAL ESTATE MARKET IS ENTERING NEW GROWTH PHASE

India’s real estate market is witnessing renewed momen tum. As Badal Yagnik puts it, “The real estate sector is in an exciting phase, with new technologies reshaping possibilities and e market dynamics transforming with rapid urbanization and emerging alternative assets. When we are developing client solutions, we consistently endeavor to integrate global excellence into our processes while being agile to the evolving Indian landscape.”

The strongest growth drivers of Indian real estate

Elaborating on the strongest growth drivers for various segments of real estate, Yagnik shared, “The sector, valued at around USD 0.3–0.4 trillion in 2025, is expected to touch nearly USD 1 trillion by 2030 and potentially reach USD 5–10 trillion by 2047, contributing up to one-fifth of the country’s GDP. The real estate momentum continues to be powered by rapid urbanization, rise in consumption driven by demographic shifts, infrastructure development and accelerated adoption of technology & sustainability. Nearly 900 million people will be living in cities by 2050, creating unprecedented demand for housing, mobility, commercial spaces, warehouses, retail avenues etc. Infrastructure investments under flagship programs such as PM Gati Shakti and the National Logistics Policy are opening new real estate corridors, supported by expressways, dedicated freight & industrial corridors, multi-modal logistic hubs and expanding airport & metro networks.

The residential segment will continue to benefit from improving affordability driven by rising income levels, policy support for affordable housing, and rising aspirations of India’s middle class. Demand for office spaces, meanwhile, will continue to derive strength from expanding global capability centers (GCCs), growing occupier preference for flexible workspaces, and a sustained flight-to-quality towards green, well-managed Grade-A developments. Similarly, industrial & warehousing space demand will be amplified by policy push, e-commerce growth, and greater focus on domestic manufacturing. Retail and hospitality segments too will benefit from rising disposable incomes, tourism growth and evolving demographic trends. Alternate asset classes like data centers, co-living, and senior housing are likely to increasingly complement the real estate portfolio of leading investors, supported by growing digitalization, steady demographic shifts and an appetite for asset diversification.”

The rising global investors interest in Indian realty

Global investor views India’s property market with a high degree of optimism and strategic intent. Yagnik further added, “Interestingly, yields in India continue to remain attractive compared to developed markets, particularly as inflation and interest-rate cycles stabilize. In fact, of the anticipated USD 5-7 billion real estate investments in 2025, nearly 50% is likely to come from foreign investors, primarily from the UK, US & APAC region. Additionally, we expect the share of REITs in the real estate market capitalization to increase from around 10% currently to 15% by 2030 and to 40-50% by 2047, diversifying beyond office and retail assets to newer segments such as warehouses, data centers, rental housing etc.”

India’s Tier II & III cities as future growth hubs

India’s next phase of real estate growth will be powered by Tier II and III cities, many of which are rapidly transforming into vibrant economic and lifestyle hubs. As per Yagnik, cities like Ahmedabad, Coimbatore, Indore, Jaipur, Kochi, Lucknow, Nagpur, Puri, Surat, Visakhapatnam etc. are expected to be at the forefront and support the case for equitable growth across the country. “These smaller cities will benefit from relatively lower real estate price points and ongoing infrastructure developments, complemented by regulatory incentives for the promotion of new GCC hubs, IT parks, and industrial clusters. Availability of large contiguous land parcels, skilled talent and elevated consumption levels along with rising disposable incomes are some of the other factors which will catapult the real estate growth story in these smaller cities, driving equitable growth spanning across residential, commercial, industrial & warehousing, retail, hospitality etc.”

What does “the future of real estate in India” look like to you in 2030?

Expressing a bullish sentiment Yagnik states that over the course of next few years, Indian real estate will be characterized by rapid scaling up led by digital integration, improvements in energy-efficiency, and larger role of institutional investors. It will also support balanced regional growth, with smaller cities fast emerging as prominent economic & real estate hubs, By 2030, India’s real estate sector is anticipated to transform into a more mature, transparent and technology-integrated industry, and form a strategic pillar of nation development. This growth will be driven by structural shifts across all asset classes. Office stock is projected to exceed 1 billion sq. ft. by 2030. Industrial & warehousing stock will grow more than two-fold and breach 500 million sq.ft. mark. Residential segment meanwhile will mature in the smaller Tier II and III cities. Within alternative asset classes, data centers are likely to witness quantum growth and touch 4,000 MW capacity by 2030. Similarly, senior and co-living will also see multi-fold growth and are likely to rise at least 3X t imes each by 2030.”


Colliers’ approach to rapid digital and workforce transformations

“We have steadily and increasingly started using digital technologies to enhance efficiency and client experience. AI-powered tools both in-house and adopted have been integrated into our various services and processes. While developing client solutions and curating our insightful reports, we leverage advanced analytics and data systems. We are simultaneously adapting talent strategies to meet the expectations of a multigenerational workforce. We have several programs in place including mentorship programs, learning platforms, well-being sessions, and upskilling avenues to enable holistic development of our people,” informed Yagnik.


OUR KEY PRIORITIES FOR 2026 AND BEYOND ARE CENTERED AROUND ACCELERATING GROWTH AND SUCCESS FOR OUR STAKEHOLDERS, EXPANDING OUR CAPABILITIES TO ALIGN WITH THE MARKET’S EVOLVING NEEDS, AND PLACING A STRONGER EMPHASIS ON NEWER SEGMENTS.