The Indian real estate market is on a trajectory to become a US$ 10 trillion industry by 2047, potentially contributing 14-20% to the country's GDP. This remarkable growth is expected to be driven by emerging segments such as senior living, co-living, and data centres. A joint report released by Colliers and the Confederation of Real Estate Developers' Associations of India (CREDAI) outlines this ambitious forecast, emphasizing that approximately 50% of India's population will reside in urban centres by 2047. This demographic shift is projected to generate significant demand across residential, office, and retail spaces.

According to the report, the median age in India is expected to shift from 30 to 40 years by 2050, influencing housing demand and urban living conditions. The combination of rapid urbanization, infrastructure development, and increasing employment opportunities is anticipated to foster growth not only in tier-I cities but also in smaller towns and peripheral areas of established cities.

Mr. Boman Irani, President of CREDAI National, emphasized that the real estate sector will attract substantial institutional investments, which will promote transparency and ensure fair pricing in the market. The growth of the real estate sector is supported by six key levers: rapid urbanization, infrastructure growth, digitalization, demographic shifts, sustainability, and investment diversification.

While residential sales have witnessed a slowdown due to prolonged approval processes, regulatory initiatives such as RERA (Real Estate Regulation Act) and REITs (Real Estate Investment Trusts) have significantly enhanced transparency and boosted investor confidence. Mr. Badal Yagnik, CEO of Colliers India, noted that by 2047, the emergence of over 100 million-plus cities will create numerous real estate hotspots across the country, presenting substantial opportunities for investors, developers, and occupiers.

Furthermore, over the next few years, asset classes under REITs/SM REITs are expected to expand to include warehouses, hotels, and rent-yielding residential properties. This expansion is further supported by institutional investments, which have surpassed US$ 60 billion in the last decade, primarily from foreign investors.

With these developments, the Indian real estate market is not just a reflection of economic growth but also a pivotal player in shaping urban landscapes and living standards in the coming decades.

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