This article is contributed by Mannu Bhazin, Country Head of IQI India.
$10 TRILLION REAL ESTATE MARKET: THE FUTURE OF INDIAN REAL ESTATE
As India continues its journey toward becoming a $10 trillion real estate market by 2047, the sector is set to play a transformative role in the country’s economic landscape. With the potential to contribute up to 20% of India’s GDP, real estate is not just witnessing growth—it’s undergoing a metamorphosis. This evolution is driven by rapid urbanization, infrastructure investments, digitalization, demographic shifts, and sustainability.
As India races toward becoming a predominantly urban country by 2050, with over half the population expected to live in cities, peripheral areas around metros and Tier II and III cities are set to become the new growth engines. The government’s push for infrastructure development—such as expanding metro networks, building expressways, and developing smart cities—will stimulate real estate growth, particularly in underdeveloped regions. This trend will lead to a surge in residential projects, office spaces, IT hubs, and logistics units, as these areas become more connected and accessible.
By 2050, the median age will rise from 30 to around 40, placing a significant portion of the population in the “first-time homebuyer” bracket. This demographic shift is expected to fuel healthy demand across various housing categories, from affordable homes to luxury apartments.
The rise of technology has brought new asset classes to the forefront. Data centers, driven by the booming demand for cloud services and digital infrastructure, are set for strong growth. The sector is also witnessing a rising interest in warehousing and logistics units, thanks to the rapid expansion of e-commerce.
As environmental consciousness grows, modern townships designed with eco-friendly features such as green buildings, renewable energy sources, and sustainable water management practices are not just an option but an expectation from homebuyers and investors alike.
The next two decades will witness the evolution of both core (residential and commercial) and emerging real estate segments (senior living centers, logistics hubs, and data centers).
The Indian real estate market is on the brink of extraordinary growth, driven by urban expansion, evolving demographics, digital innovation, and sustainability. As infrastructure projects reshape cities and investment opportunities diversify, this sector will play a pivotal role in building a modern, thriving economy.
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Data extracted in September 2024
