Indian real estate has the potential to be a US$ 10 trillion market by 2047: Report

Indian real estate is poised to become a US$ 10 trillion market by 2047, potentially contributing 14-20% to the country's GDP, driven by emerging segments such as senior living, co-living, and data centres. According to a joint report by Colliers and the Confederation of Real Estate Developers' Associations of India (CREDAI), by 2047, approximately 50% of India's population will reside in urban centres, generating significant demand across residential, office, and retail spaces. The report projects a shift in the median age from 30 to 40 years by 2050, further influencing demand.

With rapid urbanization and supporting factors like infrastructure development and increased employment opportunities, real estate traction is expected to extend beyond tier-I cities, fostering growth in smaller towns and peripheral areas of established cities. President of CREDAI National, Mr. Boman Irani, stated that the sector will attract institutional investments, promoting transparency and fair pricing. The growth is supported by six key levers: rapid urbanization, infrastructure growth, digitalization, demographic shifts, sustainability, and investment diversification. While residential sales have slowed due to prolonged approval processes, regulatory initiatives like RERA and REITs have enhanced transparency and investor confidence. CEO of Colliers India, Mr. Badal Yagnik, noted that the emergence of over 1 hundred million-plus cities by 2047 will create numerous real estate hotspots across the country, leading to significant opportunities for investors, developers, and occupiers. Over the next few years, asset classes under REITs/SM REITs are expected to expand to include warehouses, hotels, and rent-yielding residential properties, further supported by institutional investments surpassing US$ 60 billion in the last decade, primarily from foreign players.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.