Sydney, Sept 23: Indian real estate market size is estimated to jump multi-fold to USD 5-7 trillion by 2047 and may even touch USD 10 trillion driven by rising economic growth and rapid urbanisation, according to a report by CREDAI and Colliers.
Realtors’ apex body CREDAI and real estate consultant Colliers India on Monday released a joint report ‘Indian Real estate: The Quantum Leap’ here at CREDAI-NATCON conference.
“From a 6-8 per cent contribution to the GDP and a market size of USD 0.2 trillion in 2021, the real estate sector in India is expected to grow significantly and reach USD 1 trillion by 2030,” the report said.
The CREDAI and Colliers report showed that the market size of Indian real estate by 2047 is estimated to touch USD 3-5 trillion in a pessimistic scenario, USD 5-7 trillion in a realistic scenario and USD 7-10 trillion in an optimistic scenario. Real estate sector’s share in India’s total GDP is estimated at 14-20 per cent.
The consultant expects greater institutionalisation and market consolidation across all real estate segments.
“We also anticipate the maturity of core assets such as office and residential real estate and strong growth in alternative assets such as data centres and senior living,” the report said.
Additionally, the real estate growth narrative will expand beyond the boundaries of large cities and reach multiple smaller cities, it added.
“With the interplay of dynamic factors such as rapid urbanisation, rising median age, and technological advancements, we are on the brink of a quantum leap, entering a new era of growth and diversification,” said Boman Irani, President, CREDAI National.
By 2047, he said, an estimated 50 per cent of India’s population will reside in urban centres, creating unprecedented demand across residential, office, and retail spaces.
“As India navigates this exciting trajectory, the real estate sector will continue to attract institutional investments, fostering transparency, fair pricing, and global competitiveness,” Irani said.
Manoj Gaur, Chairman, CREDAI National, said India has set its sight on becoming a USD 10 trillion real estate market, driven by the sector’s ability to adapt and innovate.
“Landmark initiatives such as RERA and REIT regulations have enhanced transparency, improved investor confidence, and streamlined operations across the sector,” he added.
These reforms, alongside critical programmes like PMAY and Gati Shakti, are creating a conducive environment for sustained real estate development, Gaur said.
Badal Yagnik, Chief Executive Officer, Colliers India, said, “As India commences on a period of expansion across most economic sectors, real estate is set for a ‘Quantum Leap’, with multiple growth opportunities arising along the accelerated journey phase.”
Favourable demographics and urbanisation trends are likely to accentuate the emergence of over hundred million-plus cities by 2047, he said.
This in turn presents a case for emergence of multiple real estate hotspots dispersed across the country, Yagnik said.
The report noted that this long-term growth in real estate is underpinned by six salient growth levers — rapid urbanization, infrastructure development, digitalization, demographic shifts, sustainability and investment diversification. (PTI)
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