CREDAI-Colliers Report Projects India's Real Estate Market to Reach $5-10 Trillion by 2047

A comprehensive forecast released by the Confederation of Real Estate Developers' Associations of India (CREDAI) in collaboration with Colliers suggests that India's real estate sector is expected to undergo massive transformation by 2047, potentially reaching a market valuation between $5-10 trillion.

Ambitious Growth Projections Revealed

According to the report unveiled in New Delhi on September 11, 2025, the real estate sector is projected to constitute nearly 20% of India's Gross Domestic Product by 2047. The forecast indicates that annual housing sales could reach 1 million units per year, driven by sustained demand across various affordability segments.

Industry experts believe that the combined inventory of Grade A office, industrial, and warehousing stock could exceed 2 billion square feet by the target year. This expansion reflects the growing importance of India's real estate market in the global economy.

REIT Market Transformation Expected

The report highlights significant expectations for Real Estate Investment Trusts (REITs), suggesting their share of the real estate market capitalization could surge from the current 10% to 40-50% by 2047. REIT penetration in the office segment is anticipated to exceed 60%, compared to the current 16%.

Financial data reveals that institutional investment in the sector has reached approximately $80 billion over the past 15 years, with foreign investors contributing roughly 57% of this amount. For investors looking to understand real estate investment options, REITs are becoming increasingly attractive.

Multiple Growth Catalysts Identified

The forecast identifies several key drivers expected to fuel this unprecedented growth. Supportive policies at both central and state government levels are creating favorable conditions for real estate development. The increasing interest from both investors and developers in REITs and institutional funding mechanisms is providing new avenues for growth.

Rapid urban expansion is anticipated, particularly in Tier II and III cities and emerging economic corridors. This trend is expected to create new opportunities beyond traditional metropolitan markets.

Sustainability and Digital Transformation Focus

The report emphasizes the growing importance of sustainable development practices, digital transformation initiatives, and comprehensive infrastructure development. These factors are expected to reshape how real estate projects are conceived, developed, and marketed.

Industry observers note that climate resilience and energy efficiency considerations will increasingly influence real estate design and regulatory frameworks. This shift towards sustainable luxury homes reflects changing consumer preferences and environmental concerns.

Demographic Shifts Driving Demand

The projection indicates that India's urban population could increase from the current 37% to approximately 53% by 2050. This demographic transformation is expected to create sustained demand for housing across various price segments and drive commercial real estate requirements.

The growing urbanization trend is likely to put increased pressure on infrastructure development in peripheral urban areas, creating both challenges and opportunities for real estate developers and urban planners.

Market Implications and Future Outlook

According to the analysis, real estate is positioned to become a significantly larger component of India's economic foundation, with broader implications for employment generation, investment flows, and urban planning strategies.

The expanding role of REITs suggests enhanced liquidity, transparency, and diversified investment options for both institutional and retail market participants. This evolution could make REIT investments more accessible to a broader range of investors.

Growth patterns are expected to extend beyond major metropolitan areas, creating development opportunities in previously overlooked markets while simultaneously challenging existing infrastructure capabilities in emerging urban centers.

The increasing emphasis on sustainability concerns, including climate resilience and energy efficiency measures, will likely influence future real estate design standards and regulatory requirements. For those interested in understanding market dynamics, property valuation methods are becoming more sophisticated.