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India Poised for Real Estate Quantum Leap by 2047: Colliers Report

Sydney / September 23, 2024: A new report by Colliers, in collaboration with CREDAI, predicts a significant transformation in the Indian real estate market by 2047. Driven by strong domestic demand, supportive policies, and urbanization, the sector is poised to reach a staggering USD 10 trillion valuation, accounting for 14-20% of the country’s GDP, a statement from Colliers said. 

Key factors driving this growth include: rapid urbanization, infrastructure development, digitalization, demographic shifts, sustainability, and investment diversification. The report highlights the potential for growth in alternative asset classes like data centers and senior living. Market consolidation, fair pricing, and institutionalization will also become more prevalent, the statement added. 

Likely transformation of real estate segments in India (2024 to 2047)

Lifecycle StageNascentGrowthMature
Scale123456789
Residential         
Office         
Industrial & Warehousing         
Retail         
Hospitality         
Data Centers         
Other alternate assets *         

Note: *Other alternate assets include – Senior living, co-living, etc. | Industry/real estate segment lifecycle stage is indicative and is represented by a broad scale ranging from 1-9 (1 being extremely nascent/emerging and 9 being fully mature)

Source: Colliers, Industry

“With the interplay of dynamic factors such as rapid urbanization, rising median age, and technological advancements, we are on the brink of a quantum leap, entering a new era of growth and diversification. By 2047, an estimated 50% of India’s population will reside in urban centers, creating unprecedented demand across residential, office, and retail spaces. Alternative segments like senior living, co-living, and data centers will also witness exponential growth, driven by evolving consumer preferences and technological integration, with a focus on sustainability and energy efficiency becoming a standard across developments. As India navigates this exciting trajectory, the real estate sector will continue to attract institutional investments, fostering transparency, fair pricing, and global competitiveness. Being a leading industry body, CREDAI looks forward to working with various stakeholders to ensure that Indian real estate witnesses sustained and sustainable growth in the decades to come,” said Boman Irani, President, CREDAI National.

“India has set its sight on becoming a USD 10 trillion real estate market, driven by the sector’s ability to adapt and innovate. Landmark initiatives such as RERA and REIT regulations have enhanced transparency, improved investor confidence, and streamlined operations across the sector. These reforms, alongside critical programs like PMAY and Gati Shakti, are creating a conducive environment for sustained real estate development. The government’s focus on affordable housing, infrastructure modernization, and industrial corridors have transformed both urban and rural landscapes, driving growth beyond traditional hubs. This transformation is creating vibrant opportunities for developers, investors, and homebuyers alike.  As we move forward, real estate will continue to be a catalyst for employment generation, economic resilience, and sustainable urbanization, reinforcing its role as a key pillar in India’s economic growth story,” said Manoj Gaur, Chairman, CREDAI National

“As India commences on a period of expansion across most economic sectors, real estate is set for a ‘Quantum Leap’, with multiple growth opportunities arising along the accelerated journey phase. Favorable demographics and urbanization trends are likely to accentuate the emergence of over hundred – million plus cities by 2047. This in turn presents a case for emergence of multiple real estate hotspots dispersed across the country. Residential, office and retail segments, particularly, are expected to mature significantly in the next few decades, creating substantial opportunities for investors, developers and occupiers,” said Badal Yagnik, Chief Executive Officer, Colliers India

Infrastructure enhancement and supportive regulatory frameworks have played a crucial role in fostering long-term real estate growth. The government’s focus on logistics and data centers has also accelerated the development of new real estate frontiers.

The report also predicts a surge in alternative investments, including green financing, social-impact funds, and distressed debt. Digitalization and sustainability will be central themes in the future of Indian real estate, with PropTech and Metaverse expected to play a significant role.

Overall, the Colliers report paints a positive outlook for the Indian real estate market, positioning it for a quantum leap in the coming decades.

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