India’s real estate set to hit $5-10 trillion by 2047 on robust demand, urbanisation, says Credai, Colliers joint report

In line with the government’s goal to make the country a ‘developed nation’ by 2047, India’s real estate is also poised to reach $5-10 trillion, fuelling close to one-fifth of India’s GDP, thanks to robust domestic demand, rapid urbanisation, infrastructure-led expansion, real estate and construction sector growth and digital acceleration while office and industrial and warehousing stock is expected to cross two billion square feet, according to a new report, “Indian real estate: Fostering equity and fueling economic growth” by Colliers and Credai. 

This is going to power India’s real estate sector for a high-paced, multi-faceted growth across asset classes, which is being driven by demographic shifts, infrastructure development, innovation and increasing focus on technology as well as sustainability, the report released at the Credai NATCON event in Singapore stated.

At the core of this economic transformation is India’s real estate sector, which has evolved from a localised industry during the 1990s into a pragmatic and relatively institutionalised sector. Its contribution to the GDP has grown steadily—from under 5% in the early 2000s to 6–8% today and is projected to reach 14–20%, positioning it as a potential $10 trillion growth catalyst by 2047. "India has already emerged as the fourth largest economy globally and can potentially reach $35-40 trillion by 2047, provided the growth pace is not halted by global black swan events," the report says.

“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. The sector is uniquely positioned to reimagine India’s urban future: designing climate-resilient cities, building affordable yet aspirational homes, and nurturing ecosystems that foster innovation and inclusivity,” says Shekhar Patel, President, Credai.

The report states that the Indian real estate sector has already transformed from a largely fragmented one to a more organised and strategic contributor to national development. The upcoming decades are likely to be characterised by quantum growth fueled by rising institutionalisation, amidst strong investor appetite and scaling up of demand.

On the launch of the report, Badal Yagnik, Chief Executive Officer, Colliers India, said India’s real estate sector is at the forefront of the country’s inclusive progress. “Fueled by supportive policies, envisaged demand traction and rising developer as well as investor interest, Indian real estate is poised for decades of growth acceleration across most asset classes. Interestingly, both the Grade A office and industrial stock of the country are expected to surpass the two billion square feet mark by 2047.” He said residential sales could meanwhile double to one million units annually by the year India aims to achieve developed economy status.

 Key findings of the report:

1. Office and industrial & warehousing stock to cross two billion sq ft by 2047: Grade A office stock in India has surged over three times since 2010 to more than 800 million sq ft currently, driven by accelerated demand from both Global Capability Centres (GCCs) and domestic players across segments such as technology, BFSI, engineering & manufacturing, etc. Traction in flex spaces, too, has added to the vibrancy of India’s office market. “Driven by increasing institutionalisation, demand scale-up and strong economic growth prospects, overall stock in both these segments is likely to exceed two billion square feet by 2047.”

2. Improve affordability and housing sales: Over the next few decades, the report says, India’s median age is expected to rise further to 30-40 years, a range that aligns with peak income and consumption levels. “Coupled with an anticipated rise in income levels and supported by progressive housing policies, annual housing sales could potentially double to one million units by 2047.”

3. Retail, hospitality and alternative segments boost: Other real estate segments like retail, hospitality and alternatives like data centres, senior living, and co-living too have picked up pace backed by demographic shifts, increase in disposable income and rapid digitalisation. The report finds that over the next few years, developers are likely to increasingly focus on real estate segments beyond office, residential and industrial & warehousing.

4. Rapid urbanisation, infra growth, sustainability to shape real estate: The CREDAI and Colliers report says Indian cities are urbanising rapidly, with nearly 900 million people—53% of the population projected to live in urban areas by 2050, up from the current levels of 37%. To accommodate this growth, urban development needs to expand beyond the established Tier I cities into smaller Tier II & III cities and emerging growth corridors as well. “India is not just expanding its infrastructure; it is reimagining the future of urban living. To support these infrastructure developments, India would require more than $2 trillion investments by 2050,” says Vimal Nadar, National Director and Head of Research, Colliers India.

5. REITs share to increase to 40-50%: India’s Real Estate Investment Trusts (REIT) market is currently minuscule in comparison to global counterparts. The report states the share of REITs in the real estate market capitalisation is likely to increase from 10% currently, to 40-50% by 2047. Within the REIT market, the office segment is particularly expected to remain dominant in 2047.