India's real estate market is set for unprecedented growth, projected to reach $10 trillion by 2047, according to a report by Colliers and CREDAI. Released at the 22nd CREDAI-NATCON event in Sydney, the report outlines how rapid urbanization, infrastructure development, demographic changes, and technology will propel the sector to new heights. Real estate is expected to contribute 14-20% to India's GDP by 2047.
By 2047, half of India’s population is anticipated to live in urban centers, driving demand for housing, office, and retail spaces. Emerging sectors such as data centers, co-living, and senior living will experience accelerated growth due to changing consumer preferences, technological advancements, and a focus on sustainability. Smaller cities and Tier II/III towns are expected to become real estate hotspots, benefiting from infrastructure projects and industrial development.
Reforms like the Real Estate Regulation Act (RERA) and Real Estate Investment Trusts (REITs) have significantly boosted transparency and investor confidence. These reforms, along with government programs like Pradhan Mantri Awas Yojana (PMAY) and the Gati Shakti initiative, are modernizing India’s infrastructure, driving growth beyond traditional urban hubs.
The report also highlights the rise of alternative investment strategies. Institutional investments in the sector have surpassed $60 billion in the last decade, with a significant share coming from foreign investors. Green financing, social impact investments, and venture capital are expected to become more prominent in the coming years, while asset classes like warehouses, hotels, and rent-yielding residential properties will gain momentum under REITs.
As India moves toward its 2047 goals, the real estate sector is set for a “quantum leap,” offering vast opportunities for developers, investors, and occupiers. This growth will not only transform the real estate landscape but also play a critical role in India’s broader economic expansion.
© 2023 Rera News. All rights reserved.