India’s real estate sector is hot property, and will be a $4.8 trillion-plus market by 2047 contributing 18 percent to the projected $26 trillion GDP, according to a joint report by EY and Confederation of Real Estate Developers' Associations of India (CREDAI). The current contribution of the real estate sector to the country’s GDP is 7 percent.
The report also underlined that the burgeoning proptech segment will cross $600 billion in market size by 2047, and constitute 12-13 percent of the real estate industry as a whole.
The report said that it is validation of the ongoing and projected technological revolution given that currently, proptech makes up less than 5 percent of the $300-billion real estate sector.
The report, which was released on November 26, highlighted how innovations like artificial intelligence (AI), internet of things (IoT) and building information modelling (BIM) are transforming operations, enhancing efficiency and ensuring transparency across the real estate value chain.
Manoj Gaur, chairman, CREDAI, said that the report points to the current and future contributions of Indian real estate sector to the overall economy. As the sector evolves to meet the needs of a rapidly urbanising population, it is imperative to adopt forward-thinking approaches that align with India’s growth aspirations, he added.
“By redefining the affordable housing parameters to reflect current economic realities and focusing on planned satellite towns near major urban centres, we can address urban congestion, ensure balanced regional growth and make housing more accessible to India’s growing middle class. These initiatives, coupled with strategic policy interventions, will enable the sector to unlock its full potential and contribute meaningfully to India’s journey toward becoming a developed economy,” Gaur said.
The report stressed that India’s real estate sector has consistently been a key economic pillar and is set to grow in prominence over the next decade. Macro-level infrastructure initiatives, including the National Infrastructure Pipeline (NIP) and PM Gati Shakti, are closely linked to this growth.
Infrastructure projects, spanning roads, railways, airports and ports, are unlocking opportunities in adjacent real estate markets. Tier 2 and 3 cities such as Indore, Surat, Jaipur, Chandigarh, Salem, Bhopal, Visakhapatnam and Agra among others are emerging as the new real estate investment hubs.
Boman Irani, president, CREDAI, said the Indian real estate segment is at a crucial junction characterised by rapid urbanisation, technological integration, a pivot towards sustainable methodologies and ever-increasing homebuyer and government focus.
“An amalgamation of this magnitude and scale has put the sector firmly as the focal point of India’s robust economy. We constantly expect to take smaller yet significant steps of development as we march towards our collective mission of Viksit Bharat by 2047,” Irani said.
To fast-track the economy's growth and to achieve the vision of Viksit Bharat by 2047, CREDAI recommended certain reforms including grant of industry status to the sector, change in the definition of affordable housing, ensuring the availability of land through effective zoning along with streamlined land acquisition policies, and the benefit of the input tax credit scheme.
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