written by MANU BHAZIN, Head of IQI India

India’s real estate sector has quietly but steadily transformed into one of the biggest engines of economic growth. From contributing less than 5% to GDP in the early 2000s, the sector now accounts for 6–8%, and by 2047, it is projected to reach an impressive 14–20%. This means real estate alone could become a $5–10 trillion market, acting as a growth catalyst for India’s ambition of becoming a $35–40 trillion economy by 2047, according to a Colliers–CREDAI report. 

The momentum is already visible—India’s Grade A office stock has tripled since 2010 to 800 million sq. ft., driven by demand from GCCs, BFSI giants, technology firms, and flex operators. By 2047, office real estate is projected to triple again, reaching 2.5–3.0 billion sq. ft. Meanwhile, industrial and warehousing stock, which stood at under 50 million sq. ft. in 2010 and has now surged past 250 million sq. ft., is set to cross 2 billion sq. ft., supported by e-commerce growth, infrastructure upgrades, and global supply chain diversification. 

The government is also playing a key role in supporting this momentum. The recent overhaul of the GST regime is a game-changer for developers and homebuyers alike. By rationalising slab inputs into just two rates—5% and 18%—and reducing taxes on key inputs like cement (from 28% to 18%) and construction materials such as steel, aluminium, marble, bricks, and tiles (from 12% to 5%), construction costs are expected to fall by 3–5%. If developers pass on these savings, home prices in the affordable and mid-income segments could drop by 2–4%—providing much-needed relief for households stretched by rising interest rates and inflation. 

As India moves toward its $40 trillion economic ambition, the role of real estate cannot be overstated. With technology, policy, and demand aligning, the sector is poised to become the heartbeat of India’s $40 trillion future.