The Indian real estate sector is anticipated to exceed $4.8 trillion in market size by 2047, contributing to over 18% to the nation’s anticipated $26 trillion GDP, according to a report by real estate body Confederation of Real Estate Developers’ Associations of India (CREDAI) and Ernst & Young released on Tuesday.
This growth highlights the real estate segment’s role in India’s economic progress, with a primary factor being the property technology (PropTech) segment, forecasted to grow from $10.5 billion to $600 billion by 2047.
The report supports the current and anticipated technological transformation within the real estate industry, noting that PropTech currently accounts for less than 5 percent of the $300 billion real estate market.
The research emphasises the transformative impact of innovations such as Artificial Intelligence (AI), the Internet of Things (IoT), and Building Information Modelling (BIM) on operational processes, improving efficiency, and promoting transparency throughout the real estate value chain.
The report indicates that India’s real estate sector, which employs more than 77 million individuals—roughly 14-15 percent of the nation’s total workforce—has long been a vital component of the economy and is expected to gain even greater significance in the coming decade.
Infrastructure initiatives at the macro level, such as the National Infrastructure Pipeline (NIP) and PM Gati Shakti, are significantly associated with this growth. The NIP is designed to facilitate targeted investments amounting to $1.4 trillion over the forthcoming decade, focusing on transport, energy, communication, and social infrastructure. According to the report, these projects, which encompass roads, railways, airports, and ports, are creating opportunities in related real estate markets.
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Cities classified as Tier II and III, including Indore, Surat, Jaipur, Chandigarh, Salem, Bhopal, Visakhapatnam, and Agra, are increasingly recognised as burgeoning centers for real estate investment. This growth is anticipated to be driven by a combination of factors, initiatives, and rising demand. Furthermore, India’s youthful demographic and its growing middle class, which is expected to exceed one billion by 2047, are likely to accelerate discretionary spending, housing needs, and investments in real estate, as noted in the report.
The study also states that the provision of land through efficient zoning and simplified land acquisition policies is essential for sustainable urban development. Furthermore, the report suggests that developers should have the opportunity to select a GST scheme at the outset of each project, whether residential or commercial, in order to benefit from the input tax credit.
