New Delhi, November 26, 2024 – India’s real estate sector is set for remarkable growth, with projections indicating it will surpass a market size of $4.8 trillion by 2047. This expansion will contribute over 18% to India’s projected $26 trillion GDP by the same year, according to a joint report by CREDAI (Confederation of Real Estate Developers’ Associations of India) and Ernst & Young (EY) launched on the 25th anniversary of CREDAI in New Delhi.
The report highlights the transformative potential of India’s real estate sector, with PropTech—technology-driven innovations in the real estate industry—expected to grow at a sustained pace. By 2047, PropTech is forecast to reach $600 billion, accounting for around 12-13% of the overall real estate market, a substantial increase from its current share of less than 5% of the $300 billion market.
Key technologies like Artificial Intelligence (AI), Internet of Things (IoT), and Building Information Modelling (BIM) are driving this growth by revolutionizing the real estate value chain. These innovations are enhancing operational efficiency, improving transparency, and fostering smarter urban planning, which aligns with India’s broader goal of achieving a $26 trillion GDP by 2047.
The real estate sector in India employs over 77 million people, or about 14-15% of the country’s workforce. As a critical pillar of the economy, it has the potential to play a central role in India’s rise as a developed nation. Infrastructure initiatives such as the National Infrastructure Pipeline (NIP) and PM Gati Shakti are expected to further boost the sector by unlocking opportunities across both metropolitan and emerging tier-II and tier-III cities like Indore, Surat, Jaipur, and Agra.
India’s young and growing population, along with a rapidly expanding middle class, will drive increased demand for housing and real estate investments. By 2047, India’s middle class is expected to surpass one billion, significantly boosting discretionary spending and housing demand.
CREDAI has called for several strategic reforms to support this growth, including granting “Industry Status” to the real estate sector. This would ease access to institutional financing and reduce borrowing costs for developers. The organization also recommends redefinition of affordable housing, raising the price threshold for affordable units from INR 45 lakh to INR 90 lakh, in response to rising costs of raw materials, inflation, and land prices, which have made current definitions financially unfeasible.
Furthermore, CREDAI advocates for flexible tax schemes to support developers, including offering the option to choose between different GST rates for residential and commercial projects. A new policy framework to streamline land acquisition and zoning, along with the development of satellite towns to reduce urban congestion, is also on the table.
Boman Irani, President of CREDAI, emphasized the sector’s pivotal role in India’s economic future: “Indian Real Estate finds itself at an extremely crucial and exciting junction—characterized by rapid urbanization, technological integration, and a strong focus on sustainability. We are firmly positioned to contribute to India’s robust economy as we march toward our mission of a ‘Viksit Bharat’ by 2047.”
Manoj Gaur, Chairman of CREDAI, highlighted the report’s findings as critical to India’s future growth: “By rethinking affordable housing parameters and focusing on planned satellite towns, we can address urban congestion, ensure balanced regional growth, and make housing more accessible to India’s growing middle class. Strategic policy interventions will unlock the full potential of the sector, helping India realize its aspirations as a developed economy.”
As India moves toward its goal of becoming a developed nation by 2047, the real estate sector is positioned to play a central role in shaping its future, driving economic growth, job creation, and urban development.
