Infra push, transforming tier-2 &-3 cities pushing Indian realty to $10-trn mark by 2047

The realty sector in the country is poised for a quantum jump. India’s real estate sector is actually 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.

This ongoing surge positions the real estate sector as a cornerstone of India’s economic ascent, potentially contributing 14-20 per cent of the GDP by 2047, shaping the vision of Viksit Bharat under the government's much-hyped Amrit Kaal roadmap.

This has to be seen in face of the fact that India’s infrastructure expansion is reshaping the real estate landscape, unlocking new growth corridors and transforming Tier-II &-III cities. As India marches towards a multi-trillion-dollar economy, the demand for world-class built structures, integrated logistics hubs and resilient mobility solutions including transit-oriented development (TOD) systems will become more prominent.

Real estate and infrastructure are two vital sectors which will reinforce each other. Expressways and industrial corridors will increasingly enhance connectivity-transforming land usage in catchment areas, accelerating urban development, and creating commercially viable economic hotspots.

If a recent study by CII and Colliers is to be believed, India’s real estate sector is on a transformative trajectory-poised to grow from nearly $300 billion today to a $1 trillion industry by 2030 and potentially reach $5-10 trillion by 2047.

Urbanization and infrastructure development are driving this momentum, with 40 per cent of India’s population expected to reside in urban areas in the next few years. In fact, Tier-II cities like Chandigarh, Kochi, Lucknow, Thiruvananthapuram, etc., are emerging as new growth hubs-building India’s future.

The ongoing real estate transformation will be characterized by significant scaling up across asset classes. In addition to demand traction in core assets such as office, residential and industrial & warehousing experts expect quantum growth in alternative asset classes such as data centers and shared living.

With nearly 100 million-plus cities expected to champion the case for equitable economic growth, newer real estate growth corridors will gain prominence.

When it comes to office market segment, 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.