India's real estate sector to grow 30 times in 20 years

India's real estate sector is projected to grow into a USD 5–10 trillion market by 2047, contributing nearly 20% to the GDP. This growth, driven by urbanization, infrastructure development, and investor interest, will see residential, commercial, and industrial real estate flourish. Emerging segments like data centers and co-living spaces are set to expand, while REITs will play a key role. The sector aims to enhance both economic growth and citizens’ quality of life.

India's real estate sector is on a transformative journey, poised to become a cornerstone of the nation's economic growth. By 2047, the industry is projected to grow into a USD 5–10 trillion market, contributing nearly 20% to the country’s gross domestic product (GDP), according to a comprehensive report by Colliers and the Confederation of Real Estate Developers’ Association of India (CREDAI). This expansion aligns with India's larger economic trajectory, as the nation’s GDP is expected to rise from its current USD 4 trillion to an estimated USD 35–40 trillion by 2047.

Real Estate’s Expanding Role in the Economy

At present, India’s real estate market, valued at approximately USD 0.3 trillion, accounts for 6–8% of the national GDP. However, this share is expected to more than double, reaching 14–20% by 2047. This growth will be driven by rapid urbanization, infrastructure advancements, sustainability initiatives, and increasing interest from global investors.

“India’s real estate sector is at the forefront of inclusive progress and is set to scale into a USD 5–10 trillion market by 2047,” said Badal Yagnik, CEO of Colliers India. This outlook underscores the sector’s pivotal role in shaping the nation’s future economy.

Residential and Commercial Growth

The residential real estate market is expected to experience significant expansion, with annual sales forecasted to rise from 0.3–0.4 million units in 2025 to approximately 0.8–1.0 million units by 2047. This growth will be fueled by demographic changes, increasing disposable incomes, and supportive government policies aimed at housing development.

On the commercial front, the office and industrial real estate segments are set to flourish. Grade A office stock, which has already tripled since 2010 to over 800 million square feet (msf), is predicted to grow further, reaching 2.5–3 billion square feet (bsf) by 2047. This expansion will be driven by demand from sectors such as technology, banking, financial services, insurance (BFSI), engineering, and flex spaces.

Similarly, industrial and warehousing stock has crossed the 250 msf mark as of 2025, bolstered by infrastructure upgrades and private sector investments. By 2047, this segment is expected to surpass 2 bsf, catering to evolving consumer demand and the rise of e-commerce.

Diversification into Emerging Segments

Beyond traditional real estate categories, developers are increasingly exploring opportunities in emerging segments. Data centers, for instance, are projected to see a dramatic increase in colocation capacity, growing from 1.3 GW in 2025 to 10–15 GW by 2047. Co-living spaces are also poised for growth, with the number of beds anticipated to expand from 0.3 million to over 3 million during the same period. Additionally, senior living facilities are expected to witness a surge, with beds increasing from 30,000 in 2025 to 1 million by 2047.

The Rise of Real Estate Investment Trusts (REITs)

The role of Real Estate Investment Trusts (REITs) in the sector is set to become more prominent. Currently, REITs account for about 10% of the real estate market capitalization, a figure projected to rise to 40–50% by 2047. Office REIT penetration, in particular, is expected to grow from 16% in 2025 to over 60% by 2047. This growth will be driven by heightened investor confidence, improved regulatory frameworks, and greater institutionalization within the industry.

By 2047, the Indian real estate sector will not only be defined by its market size or asset value but also by its contributions to enhancing citizens’ quality of life. As Shekhar Patel, President of CREDAI, aptly stated, “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 citizens.”

The journey to 2047 is one of immense promise, with the real estate sector set to play a transformative role in shaping a sustainable, inclusive, and prosperous India.