India's Real Estate Market Will Double To 15.5% Of GDP by 2047

India's real estate sector is poised for massive expansion, projected to grow to $5.8 trillion by 2047, contributing 15.5 per cent to the country's GDP, up from the current 7.3 per cent, according to CIRIL report. By 2030, the market size is expected to reach $1 trillion, a sharp rise from $200 billion in 2021. The retail, hospitality, and commercial real estate segments are also witnessing significant growth, providing crucial infrastructure for India's expanding economy. The real estate market is set to maintain strong investment momentum in 2025, backed by robust domestic economic fundamentals and a strategic focus on technology and ESG (Environmental, Social, and Governance) integration in investment decisions. The government is expected to extend infrastructure development beyond metro cities to achieve its Vision 2047. The sector has shown remarkable performance in 2024, with residential, office, logistics, hospitality, and retail segments expected to grow at a CAGR of 9.2 per cent between 2024-2028. Urbanisation, rental market growth, and steady price appreciation are key factors driving this upward trajectory. India's economic growth is projected at 6.6 per cent in 2025, driven by private consumption and investment, according to a United Nations report. Increased capital expenditure on infrastructure is expected to have strong multiplier effects on economic expansion. Investment in real estate remains strong, with Domestic Institutional Investors (DIIs) reaching a record-high 16.46 per cent market share in September 2024, up from 16.25 per cent, with net inflows of Rs1.03 lakh crore. Despite foreign institutional investor (FII) outflows in October 2024, DII investment remained at record levels, a trend expected to continue in 2025.

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