Indian Real Estate Poised For 16% Annual Growth, Targeting $10 Tn Market By 2047: Colliers-Credai Report

India's real estate sector is on the cusp of a massive transformation, with projected annual growth of 16 per cent, according to a new report by Colliers in collaboration with the Confederation of Real Estate Developers' Associations of India (Credai). Titled “Indian Real Estate: The Quantum Leap,” the report, released at the Credai NATCON event in Sydney, estimates that the sector could grow to USD 10 trillion by 2047, contributing 14-20 per cent of the country’s GDP.

As India heads toward its centenary year of independence, this growth will be powered by six key factors: rapid urbanisation, infrastructure development, digitalization, demographic shifts, sustainability, and investment diversification. These forces are expected to reshape the real estate landscape across office, residential, and retail markets while propelling emerging segments such as co-living, senior living, and data centres into high-growth trajectories.

The report highlights India’s rapid urbanisation and changing demographics as pivotal drivers of real estate demand. By 2050, it is expected that over 50 per cent of the population will live in urban areas, while the median age will rise from approximately 30 to 40 years. These shifts will drive the demand for housing, retail spaces, and offices, particularly in Tier II and III cities, which are expected to become new growth centres. Peripheral areas around major cities will also witness significant development.

Boman Irani, President of Credai National, emphasised the transformative potential of urbanisation, stating, “By 2047, 50 per cent of India’s population will reside in urban centres, driving unprecedented demand across real estate segments. Senior living, co-living, and data centres will experience exponential growth, and sustainability will become a cornerstone of future developments. As we move forward, real estate will continue to attract institutional investments, promoting transparency, fair pricing, and global competitiveness.”

Impact of Policy and Infrastructure on Real Estate
Government initiatives have been instrumental in shaping the sector. Landmark reforms like the Real Estate (Regulation and Development) Act (RERA), Real Estate Investment Trusts (REITs), and programs like Pradhan Mantri Awas Yojana (PMAY) have boosted transparency and improved investor confidence. Infrastructure projects such as the PM Gati Shakti Master Plan, the National Infrastructure Pipeline, and the Golden Quadrilateral Project have also laid a strong foundation for the growth of real estate in previously untapped areas.

Manoj Gaur, Chairman of Credai National, remarked, “India’s real estate transformation is being driven by key reforms that enhance investor confidence and ease of doing business. Affordable housing, industrial corridors, and infrastructure modernization have unlocked vibrant opportunities for developers, investors, and homebuyers. As we move forward, real estate will be a catalyst for economic resilience and sustainable urbanisation.”

Emerging Growth Segments
The report underscores the potential of alternative asset classes, such as data centres and senior living, to experience a surge in demand. India’s growing digital economy, alongside government mandates for data localization, will drive investments in data centres, making this one of the fastest-growing segments. Meanwhile, India’s ageing population is set to make senior living a booming market in the coming decades.

Badal Yagnik, CEO of Colliers India, highlighted this shift: “India is set for a ‘Quantum Leap,’ with over 100 new million-plus cities expected by 2047. Residential, office, and retail segments will mature significantly, creating substantial opportunities for investors, developers, and occupiers. The rise of alternative assets like data centres and senior living will redefine the sector.”

Green Growth and Sustainability
Sustainability will become central to India’s real estate future, with a push towards green buildings and energy-efficient infrastructure. Developers are increasingly incorporating sustainable elements across all stages of construction, aiming for almost 100 per cent adoption of green certification in commercial projects over the next decade.

Rahul Thomas, Whole-Time Director of Suraj Estate Developers, sees this as an opportunity to strengthen their market position, stating, “Digitalization, policy-driven growth, and infrastructure advancements will increase demand for high-quality residential housing in metropolitan areas. On the commercial side, Mumbai, as a global business hub, will continue to see heightened demand for modern office spaces, with green initiatives at the forefront.”

Investment Trends and Funding Opportunities
Institutional investments in Indian real estate have surged over the past decade, crossing USD 60 billion, with foreign players contributing significantly. The growing influx of foreign capital, combined with strong domestic interest, is expected to accelerate the adoption of alternative funding strategies such as green bonds and social-impact funds. In the long term, REITs will expand beyond office and retail spaces to include warehouses, hotels, and even rent-yielding residential properties.

Saurabh Runwal, Associate Director of Runwal, added, “The real estate sector’s 16 per cent annual growth is fueled by infrastructure development, demographic shifts, and post-pandemic consumption patterns. Technology has simplified development and boosted transparency, making it easier for both domestic and foreign investors to view real estate as a key component of their portfolios.”
 

Shaping The Future of Real Estate

Ashish Bhutani, CEO of Bhutani Group, reflected on the evolving landscape and said that Indian real estate landscape has flourished significantly over the years, with verticals like co-living, student housing, data centres, and flexible workplaces. “We see growing demand for cutting-edge commercial spaces and sustainable development as key opportunities to shape the future of real estate in urban India. Initiatives like infrastructure growth, urbanisation, and favourable demographics align with Bhutani Infra’s vision of pushing real estate growth in Tier 1 peripheries and emerging Tier 2 and Tier 3 cities.”

Impact of Policy and Infrastructure on Real Estate
Government initiatives have been instrumental in shaping the sector. Landmark reforms like the Real Estate (Regulation and Development) Act (RERA), Real Estate Investment Trusts (REITs), and programs like Pradhan Mantri Awas Yojana (PMAY) have boosted transparency and improved investor confidence.

Manju Yagnik, Vice Chairperson of Nahar Group and Senior Vice President of NAREDCO Maharashtra, highlighted these reforms, saying, “According to the latest report by Colliers and CREDAI, the Indian real estate sector will undertake a revolutionary journey, with an overall index expected to hit $10 trillion by 2047. Key parameters such as rapid urbanisation, a median age increase, and technological advancements will drive this growth. On the policy front, initiatives like Pradhan Mantri Awas Yojana (PMAY) will be crucial in stimulating demand, especially in the affordable housing space. 

India’s real estate sector is poised for a historic breakthrough, driven by urbanisation, digital transformation, and favourable demographic shifts. The next few decades will see a surge in demand across both traditional and alternative real estate segments, with sustainability and technology playing key roles in shaping future developments. With a forecasted growth rate of 16 per cent annually, the market is on track to achieve a USD 10 trillion valuation by 2047, cementing its place as a critical driver of India’s economic growth.