India’s real estate to hit $5 - 10 trillion by 2047

India’s real estate market is on the cusp of a monumental transformation, with projections indicating it could reach a staggering $5 - 10 trillion valuation by 2047, according to a comprehensive report by the Confederation of Real Estate Developers’ Associations of India (CREDAI) and Colliers, unveiled at the 23rd CREDAI NATCON 2025 in Singapore.

This growth trajectory is expected to position the sector as Facet as a pivotal contributor, accounting for nearly one-fifth of India’s GDP by 2047. Fuelled by robust demand, supportive government policies, and rising investor interest, the sector is set to experience decades of accelerated expansion across various asset classes, including residential, commercial, and industrial segments.

The report, titled ‘Indian Real Estate: Fostering Equity and Fuelling Economic Growth’, outlines the sector’s evolution since the 1990s and charts its ambitious path toward 2047, India’s centennial year of independence. It identifies five key structural forces driving this growth: urban expansion, infrastructure development, demographic shifts, digital transformation, and sustainability imperatives. These factors are expected to reshape India’s urban landscape, with significant implications for real estate development and economic progress.

Urbanization and Infrastructure Development

India is undergoing rapid urbanization, with the urban population projected to rise to 900 million, or 53% of the total population, by 2050, up from the current 37%. To accommodate this shift, urban development must extend beyond Tier I cities into Tier II and III cities and emerging economic corridors.

The report emphasizes that while infrastructure budgets have grown at a compound annual growth rate (CAGR) of 13 - 14% over the past 25 years, substantial investments exceeding $2 trillion by 2050 are still required to support this urban expansion. These investments will facilitate the development of new townships, retail hubs, and hospitality destinations, laying the foundation for sustained economic growth.

The focus on emerging Tier II and III cities is particularly significant. As established metropolitan areas reach saturation, these smaller cities are poised to become focal growth centers. The report highlights the need for infrastructure development to keep pace with urbanization, noting that more than half of the urban infrastructure needed by 2050 is yet to be built. This presents a significant opportunity for real estate developers and investors to tap into new markets and drive inclusive growth.

Housing and Commercial Real Estate Growth

The residential segment is expected to see robust growth, with annual housing sales projected to double to 1 million units by 2047. This surge is driven by rising demand, particularly in the luxury segment, which has already propelled housing sales to Rs. 3.6 lakh crore in the first half of 2025.

Simultaneously, the commercial real estate sector, including Grade A office spaces, industrial, and warehousing facilities, is forecasted to surpass 2 billion square feet by 2047. This growth reflects the increasing demand for high-quality office spaces and logistics facilities, driven by India’s expanding economy and global trade integration.

Rise of REITs and Institutional Investments

A notable shift in the market structure is the projected rise of Real Estate Investment Trusts (REITs), which are expected to account for 40 - 50% of the real estate market’s capitalization by 2047, a significant increase from the current 10%. The office segment, in particular, will see REIT penetration surge from 16% in 2025 to over 60% by 2047, underscoring the growing appeal of REITs as a stable investment vehicle.

This trend is supported by the sector’s strong institutional investment inflows, which have totalled nearly $80 billion over the past 15 years, with foreign investors contributing 57% of the capital. Post-pandemic, domestic capital has also gained traction, reflecting growing confidence in India’s real estate market.

Sustainability and Innovation

Sustainability is a cornerstone of the sector’s future, with the report projecting that green office space inventory could reach 700 million square feet by 2027. This aligns with broader environmental goals, as developers prioritize climate-resilient cities and sustainable building practices.

At CREDAI NATCON 2025, a memorandum of understanding (MoU) was signed between Credai Pune and Singapore’s BCA International to promote sustainable, high-quality building practices in India. This partnership aims to foster greener urban development, ensuring that real estate growth aligns with environmental responsibility.

CREDAI NATCON 2025: A Vision for the Future

Held from September 11–13, 2025, in Singapore, CREDAI NATCON 2025 convened over 1,200 stakeholders, including developers, investors, policymakers, and global innovators, under the theme “$30 Trillion Economy by 2047: Powered by Real Estate Growth.”

The event served as a platform to discuss India’s ambitious economic vision and the real estate sector’s role in achieving it. Shekhar Patel, President of CREDAI, emphasized the sector’s potential to redefine India’s urban future by creating climate-resilient cities, affordable yet aspirational homes, and inclusive ecosystems. “By 2047, Indian real estate will not just be measured in square feet or asset values, it will be defined by the quality of life we create for millions of citizens,” Patel stated.

Badal Yagnik, CEO of Colliers India, echoed this sentiment, highlighting the sector’s role in India’s inclusive progress. “Fuelled by supportive policies, envisaged demand traction, and rising developer and investor interest, Indian real estate is poised for decades of growth acceleration across most asset classes,” he said. Vimal Nadar, National Director and Head of Research at Colliers India, underscored the shift toward Tier II and III cities, noting that these emerging hubs will drive the next wave of economic growth.

Challenges and Opportunities
While the outlook is optimistic, challenges remain, particularly in infrastructure development and regulatory frameworks. The report stresses the need for continued policy support to sustain growth momentum. Streamlined regulations, faster project approvals, and incentives for sustainable development will be critical to unlocking the sector’s full potential. Additionally, the integration of digital transformation such as smart city initiatives and PropTech solutions will enhance efficiency and transparency in real estate transactions.

India’s real estate sector is at a pivotal juncture, with the potential to become a $5 - 10 trillion market by 2047. By leveraging urbanization, infrastructure investments, and sustainable practices, the sector is set to redefine India’s economic and social landscape.

The rise of REITs, increasing institutional investments, and a focus on Tier II and III cities signal a dynamic shift toward inclusive and resilient growth. As CREDAI and industry leaders chart this ambitious roadmap, the real estate sector is poised to not only fuel India’s $30 trillion economic vision but also set a global benchmark for sustainable urbanization.