Urbanization and infrastructure development will drive India’s real estate market to grow to USD 10 trillion by 2047.
Rapid Urbanization and Infrastructure Development to Drive Growth
India’s real estate market is poised for significant expansion, with projections indicating it will reach USD 10 trillion by 2047. The primary drivers of this growth will be rapid urbanization and infrastructure development. By 2050, urban areas will house half of India’s population, spurring increased real estate activity in cities and their outskirts. As a result, peripheral regions and smaller towns will emerge as new growth centers, fueling demand for housing, office spaces, and retail developments. This urban shift will play a key role in shaping India’s real estate landscape in the coming decades.
The latest report, “Indian Real Estate: The Quantum Leap,” by Colliers and the Confederation of Real Estate Developers’ Associations of India (CREDAI), examines the relationship between real estate and India’s economic growth over the coming decades. This quantum leap will notably create multiple real estate hotspots across the country. The report was unveiled at the CREDAI NATCON event in Sydney.
Demographic Shifts to Shape Housing Demand
India’s changing demographics will play a crucial role in real estate growth. The median age will increase from around 30 to 40 years by 2050. This demographic shift, combined with a surge in first-time homebuyers, will drive the housing market. Additionally, an ageing population will spur demand for senior living facilities, creating new investment opportunities in this segment.
Digitalization and Sustainability at the Core
India’s real estate transformation will incorporate digitalization and sustainability as foundational elements. Smart cities, tech-enabled buildings, and sustainable infrastructure will not only improve living standards but also attract global investments. As the world moves towards greener practices, Indian developers are focusing on creating eco-friendly properties, aligning with global environmental goals.
Investment Diversification and Market Consolidation
India’s real estate landscape will mature across multiple asset classes. Core assets like residential and office spaces will continue to evolve, while alternative segments like data centres and industrial warehouses will experience rapid growth. Investment diversification, driven by a fair-pricing and institutionalization trend, will support long-term market consolidation, enhancing real estate’s role in the economy.
