India’s real estate sector will surpass $4.8 trillion by 2047, contributing 18% to the projected $26 trillion GDP. This increase is substantial, considering the current contribution is only 7%. A joint report by EY and CREDAI predicts this growth will be driven by technological innovations, expanding urbanization, and changes in government policy.
Growth drivers in India’s real estate sector
Proptech will play a key role in this growth, with its market expected to exceed $600 billion by 2047. Right now, proptech accounts for less than 5% of India’s $300 billion real estate market. Technologies like artificial intelligence (AI), the Internet of Things (IoT), and building information modeling (BIM) will transform the industry. These innovations will improve efficiency, transparency, and operations, driving the sector’s evolution.
Key reforms for India’s real estate growth
To maximize the potential of India’s real estate sector, experts suggest several reforms. CREDAI recommends granting industry status to real estate, revising the definition of affordable housing, and streamlining land acquisition policies. Effective zoning policies will also ensure land availability, which is crucial for the sector’s growth.
The role of infrastructure in India’s real estate sector
Infrastructure development will be another driving force behind real estate growth. Projects under the National Infrastructure Pipeline (NIP) and PM Gati Shakti will unlock opportunities in Tier 2 and 3 cities such as Indore, Surat, and Jaipur. These cities are rapidly emerging as new hubs for real estate investment.
Sustainability and technology driving real estate evolution
Sustainability and technology are essential components of the sector’s future. Real estate will increasingly focus on reducing its environmental impact while building smarter, more connected urban spaces. Boman Irani, president of CREDAI, highlighted the importance of aligning these innovations with India’s ambition to become a developed economy by 2047.
India’s real estate sector will remain a key economic pillar, with technological advancements and infrastructure development fueling growth. The sector’s future looks promising, driven by forward-thinking policies and strategic investments.
