India’s realty sector poised to grow at $5-10 trillion by 2047

India’s real estate sector is at the cusp of a monumental and transformative journey and is projected to grow multifold levels—from nearly $0.3 trillion today to a staggering $5–10 trillion market by 2047, potentially contributing 14–20 per cent of the GDP by 2047.

According to a joint report by CII and Colliers on Real Estate @2047 – Building India’s future growth corridors, the survey highlights near-term trends and the overarching growth theme across core segments—residential, office, retail, industrial & warehousing as well as emerging alternative asset classes like senior living, co-living, and data centers.

Most of these trends are being powered by a strong tailwind in the form of government-led reforms and policy initiatives and structural demand drivers such as rapid urbanisation, demographic shifts, infrastructure augmentation, technology-driven innovation, and sustainability priorities. Together these growth engines are creating a multiplier effect, fueling employment and demand across real estate asset classes, attracting institutional capital and unlocking new growth corridors across the country.

Within real estate, the residential segment is expected to see the most pronounced impact from rapid urbanisation and evolving demographics, particularly in affordable, senior and co-living spaces. Concurrently, technological advancements, especially in AI, will drive the growth of data centers and smart city infrastructure.

India’s office market is set for a sustained expansion, with annual demand expected to stabilize at 70–75 million sq ft in the next few years. Shaped by evolving occupier preferences, Grade A stock is projected to surpass 1 billion sq ft by 2030 and can potentially breach 2 billion sq ft mark by 2047. The maturity of the Indian office market will be marked by hybrid work models, and hub-and-spoke office formats, alongside the rise of Global Capability Centers (GCCs) driving high-value innovation and digital transformation. Annual GCC leasing is projected to be around 30-40 million sq ft in the coming years, driving 40-50% of the annual Grade A office demand. Flexible workspaces will reshape the real estate portfolio of occupiers in such smaller cities and account for 20–25% of overall India leasing in the near-term.

Supported by increasing household incomes, favourable demographic trends, and forward-looking housing policies, India’s residential real estate market is expected to reach 0.5 million units annually by 2030 and potentially doubling to 1 million housing units by 2047. In addition to the affordable segment, luxury housing and niche offerings for HNIs and UHNIs will gain traction, alongside plotted developments, villas, and wellness-oriented living spaces.  The industrial & warehousing segment is poised for significant momentum, with annual demand expected at 30–40 million sq ft in the coming years, supported by strong infrastructure development and a diversified occupier base. With Grade A stock projected to exceed 0.5 billion sq ft by 2030 and potentially 2 billion sq ft by 2047, India’s warehousing landscape will become smarter and greener, supported by the development of industrial corridors and logistics parks.

India’s retail segment too is set to capitalise on rising urbanisation and improving consumption levels. With over 1,000 malls across Indian cities by 2030, which is likely to rise further and cross 1,500 by 2047, retail space uptake will be comparatively higher in smaller cities. Moreover, institutionalisation and the rise of retail REITs will further formalise the segment.

India’s data centre capacity is expected to scale significantly, reaching nearly 4.5 GW by 2030 and surging to 10 GW by 2047—driven by policy-level push, rising adoption of AI, cloud & edge computing, 5G rollout, and green energy integration. Senior and co-living will also see multi-fold growth.

The multiplier effect of policy initiatives, infrastructure development and inherent demand drivers is set to catalyse Indian real estate, propelling it to a $5-10 trillion market by 2047, a growth of over 20X times compared to current levels. Driven by rapid urbanisation, India can potentially have nearly 100 cities with a million-plus population by 2047.

I bought an apartment 30 years ago as an NRI. I wish to know the capital gains tax implications while selling it now. Pramod Kurup, Sharjah.

The long-term capital gains tax will be calculated on the difference between sale price and the original cost of acquisition. Cost of any improvement to the asset will also be eligible for deduction. It will be taxed at 12.5 per cent plus applicable surcharge and health and education cess.

My investment in India covered both residential and commercial properties in Mumbai and Pune. If I mortgage the assets to raise short-term funds, are there any restrictions? Kamal Mangla, Dubai.

There are no restrictions to mortgage your assets to raise short-term funds. You can mortgage to an authorised dealer/housing finance institution in India without the need to obtain approval from Reserve Bank of India. However, if you wish to mortgage to a party abroad, then prior approval of Reserve Bank is necessary.