India’s Real Estate Sector Projected to Reach $5.8 Trillion by 2047: Report

India’s real estate sector is projected to reach a valuation of $5.8 trillion by 2047, supported by rising institutional investment, expanding domestic capital pools and sustained demand across major property segments, according to a joint report by Anarock and the Federation of Indian Chambers of Commerce and Industry (FICCI).

The report said the sector’s estimated value rose fivefold from $120 billion in 2017 to approximately $600 billion in 2025. It is projected to reach $1 trillion by 2030, while its contribution to India’s gross domestic product (GDP) is expected to increase from around 6 per cent in 2017 to 13 per cent by the end of the decade.

However, the value of real estate under construction nearly doubled between 2019 and 2025, with residential projects accounting for approximately 85 per cent of the total.

Raj Menda, chairman of FICCI’s Committee on Urban Development and Real Estate, said strengthening domestic capital markets, simplifying project approval processes and expanding growth beyond major metropolitan centres would be essential to sustaining the sector’s expansion.

Anarock Chairman Anuj Puri said Indian real estate was increasingly emerging as a long-term institutional asset class rather than a market driven primarily by cyclical movements in land prices. He added that domestic savings, income-generating properties and larger investment platforms would shape the sector’s next phase of growth.

Real estate funding ecosystem expands

The report highlighted a significant transformation in the industry’s funding structure. While promoter equity and advances from property buyers once dominated financing, the sector now attracts capital from global private equity funds, sovereign wealth funds, domestic alternative investment funds (AIFs), public equity markets and real estate investment trusts (REITs).

Private equity investment in Indian real estate remained resilient between 2015 and 2025, with annual investments reaching as much as $7.7 billion.

During the first nine months of 2026, disclosed private equity investments totalled $6.1 billion across 55 deals. Data centres attracted $2.5 billion, while office assets accounted for $1.7 billion, making them the leading destinations for investment during the period.

Transaction sizes have also increased. Deals exceeding $100 million accounted for 76 per cent of total private equity investment value between 2021 and 2025, compared with 44 per cent during 2011–2015.

Domestic investment gains ground

Domestic funds invested $2.6 billion in real estate during the first nine months of 2026, up from $400 million in 2020. Their share of total private equity investment rose from 8 per cent to 42 per cent over the same period, reflecting the growing role of Indian capital in the sector.

Foreign investors continue to account for a significant share of investment, but domestic capital is expanding more rapidly, supported by the growth of alternative investment funds.

According to the report, total AIF commitments increased to ₹17.53 lakh crore in June 2026 from ₹3,47,802 crore in December 2019.

The expansion of domestic investment channels is expected to provide additional financing options for developers and support the development of a broader range of real estate assets.

Residential and office demand reaches new highs

The report also pointed to strong demand across major real estate segments.

The value of residential sales in India’s seven largest cities reached a record ₹6.1 lakh crore in fiscal 2026, more than double the level recorded in fiscal 2022.

Office market activity also strengthened, with gross absorption across the top seven cities reaching a record 80.5 million square feet in 2025. This was more than twice the level recorded in 2021.

The report’s findings indicate that institutional investment, growing domestic funding capacity and demand for residential and commercial properties are reshaping India’s real estate market.

Achieving the projected long-term expansion, however, will depend on the industry’s ability to sustain demand, improve access to capital, streamline approvals and broaden development opportunities beyond the country’s largest urban centres.