India’s real estate sector is set for massive expansion, projected to reach USD 5.8 trillion by 2047, contributing 15.5% to GDP, up from 7.3% currently, according to a CIRIL report. By 2030, the market size is expected to hit USD 1 trillion, a sharp rise from USD 200 billion in 2021. The retail, hospitality, and commercial real estate segments are witnessing strong growth, supporting India’s expanding economy.
The sector will sustain strong investment momentum in 2025, driven by economic fundamentals, technology adoption, and ESG integration. Infrastructure expansion beyond metro cities is a key government strategy to achieve Vision 2047. Residential, office, logistics, and retail segments are expected to grow at a 9.2% CAGR (2024-2028), fueled by urbanization, rental demand, and price appreciation.
Vijay Sarathi, Chairman of CIRIL, highlights new investment avenues in tourism, retail, warehousing, co-working, and co-living projects in 2025. India’s economy is forecasted to grow at 6.6% in 2025, backed by private consumption and infrastructure investments with strong multiplier effects.
Investor confidence remains high, with Domestic Institutional Investors (DIIs) achieving a record 16.46% market share in September 2024, netting Rs 1.03 lakh crore in inflows. Despite Foreign Institutional Investor (FII) outflows in late 2024, DII investments continue to surge, reflecting strong domestic backing.
As the real estate market evolves, technology-driven investment, strategic infrastructure growth, and foreign collaborations will shape its future. With India’s growing urbanization and rising income levels, the sector is poised to play a pivotal role in economic transformation.
Stay updated on India’s booming real estate market trends, investment opportunities, and future growth prospects as the industry moves towards a trillion-dollar milestone.
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