The Indian real estate sector has attracted over $60 billion in institutional investments over the past decade, with most of the capital coming from foreign sources, according to a joint report by Colliers and the Confederation of Real Estate Developers’ Associations of India (Credai).
The report estimates that the sector could grow into a $10 trillion market by 2047, with its contribution to India’s gross domestic product (GDP) projected to rise to between 14% and 20% by that time. Currently, real estate accounts for around 7.3% of the country’s GDP.
Foreign capital is expected to increase as domestic economic growth remains strong, business regulations improve, and the government continues to ease foreign direct investment (FDI) rules.
The report also highlighted that alternative funding methods will likely become more common, driven by both foreign and domestic investment. Green financing—such as bonds and credits—along with newer forms like social impact and venture capital funds, is expected to gain traction in the coming years.
Boman Irani, president of Credai National, emphasized that emerging real estate segments like senior living, co-living, and data centers are poised for significant growth. These sectors are being driven by shifting consumer preferences and technology adoption, with sustainability and energy efficiency increasingly prioritized in new developments.
The report also projected demographic changes, noting that India’s median age is expected to rise from around 30 years today to nearly 40 by 2050. By 2047, approximately 50% of India’s population is forecasted to live in urban areas.
Manoj Gaur, chairman of Credai National, added that with rapid urbanization and infrastructure growth, real estate development is expected to expand beyond major cities, creating new growth hubs in smaller towns and cities.
The report further noted that regulations such as the Real Estate Regulatory Authority (RERA) and Real Estate Investment Trusts (REITs) have improved transparency, boosted investor confidence, and streamlined operations within the sector.
In the future, REITs and smaller REITs are expected to expand into new asset classes beyond office and retail spaces, potentially including warehouses, hotels, and rent-generating residential properties. The report suggested that these financing avenues could also extend into other sectors such as data centers, healthcare facilities, educational institutions, and senior living accommodations.
If you are a proptech company and want to promote your products for free, go to proptechbuzz.com and submit your products. For investors or proptech buyers, sign up on our platform to stay informed about exciting updates and trends in the Proptech Ecosystem.
Explore more Proptech news at proptechbuzz.com/news, for news tips and promotions, reach out to marketing@proptechbuzz.com.
By Proptechbuzz
By Ravi Kumar
