Infra push, new demand drivers to redefine markets, says Colliers-CII report
NEW DELHI, Nov 7 (The CONNECT) -India’s real estate sector is on the verge of a transformative expansion, with the potential to grow about 20 times and reach a market size of USD 5–10 trillion by 2047, according to the latest Colliers-CII report, “Real Estate @2047: Building India’s Future Growth Corridors.” Currently valued at nearly USD 300 billion, the sector is expected to contribute 14–20% to the nation’s GDP by the time India marks 100 years of Independence. This trajectory aligns closely with the Government’s broader vision of Viksit Bharat under the Amrit Kaal roadmap.
Launched during CII Realty 2025 in New Delhi, the report highlights how rapid urbanization, rising household incomes, a sustained infrastructure push, digital transformation, and increasing sustainability priorities are steering the sector forward. Real estate is emerging not only as a key economic engine but also as a catalyst reshaping the country’s urban footprint and socio-economic fabric.
Policy Reforms Driving Confidence and Accessibility
India’s policy framework in recent years has significantly influenced real estate maturity. Measures such as RERA, PMAY, granting infrastructure status to affordable housing, and the SWAMIH fund have expanded homeownership access, improved transparency, and enhanced financing support. Large-scale investments in road and metro networks, industrial corridors, and transit-oriented development are opening new land-use and development opportunities.
Harleen Kaur, Deputy Secretary, Ministry of Road Transport and Highways, noted that infrastructure corridors are accelerating commercial viability in emerging regions by reshaping connectivity and land value patterns.
Housing Demand to Rise Sharply
The residential market is poised for strong growth, driven by demographic shifts and rising incomes. Annual housing demand is projected to reach 0.5 million units by 2030, with the potential to double to nearly 1 million units by 2047. While affordable housing will continue to anchor demand from first-time homebuyers, segments like senior living, co-living, plotted developments, villas, and premium residences will see meaningful traction. Tier II and III cities, including fast-emerging lifestyle and spiritual hubs, are already witnessing stronger absorption.
Commercial and Industrial Segments Scaling Up
India’s office market is expected to stabilize at an annual demand of 70–75 million sq ft in the coming years. Global Capability Centers (GCCs) will be key demand drivers, accounting for nearly half of Grade A leasing in the near term, driven by talent availability and cost competitiveness. Smaller cities such as Indore, Kochi, Bhubaneswar, and Coimbatore are becoming prominent office destinations, supported by improving infrastructure and skilled workforce pools.
The industrial and warehousing segment is entering a high-growth phase, with annual demand likely to hover at 30–40 million sq ft. Grade A warehousing capacity is projected to exceed 0.5 billion sq ft by 2030 and touch 2 billion sq ft by 2047, driven by manufacturing diversification, e-commerce penetration, and multimodal logistics parks.
Alternative Asset Classes Set for Breakout Growth
While core segments will remain dominant, alternative assets such as data centers, co-living, and senior living are expected to expand exponentially due to demographic and digital shifts. India’s data center capacity is projected to grow more than 10 times by 2047, supported by AI adoption, cloud infrastructure, 5G rollout, and green power integration. Senior living and shared accommodation formats will rise 10–30 times over the next two decades as lifestyle and family structures evolve.
The New Urban Frontier
India is expected to have nearly 100 cities with a population above one million by 2047. These emerging hubs will enable more balanced regional development, reduce pressure on megacities, and foster diversified economic centers.
The Colliers-CII report underscores that the real estate sector’s evolution will shape the country’s physical, economic, and societal landscape — making it a defining pillar of India’s growth story in the decades ahead.
