Annual housing sales are expected to double, reaching 1 million housing units by 2047, driven by rising income levels and demographic shifts, according to the Confederation of Indian Industry (CII) and property consultant Colliers.
Beyond the top 7–8 established housing markets, Tier II and III cities, including spiritual hotspots, are poised for a sustained rise in housing demand in the coming decades amidst growing urbanization, demographic alignment, and infrastructure development.
According to the report, India’s median age is projected to rise to between 30 and 40 years, an age bracket that corresponds with peak earning and spending capacity.
“This demographic shift presents a strategic advantage for residential real estate, as rising income levels will keep affordability intact and provide a demand-side boost to housing sales. Although the majority of the residential offerings will largely cater to first-time homebuyers, leading developers will equally focus on the luxury segment and niche products driven by High Net Worth Individual (HNI) and Ultra-HNI demand,” the report said.
Sales of plotted developments, villas within gated communities, premium housing with concierge services, and vacation homes are expected to remain strong, as homebuyers increasingly prioritize space, exclusivity, and wellness-oriented living.
“Real estate will play a crucial role in achieving the dream of a developed India by 2047. The penetration is still very low, and buyers are looking for grade A developers who can deliver quality,” said Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd.
Investor-driven sales can expand from select pockets and product offerings to a much larger scale in newer micro-markets and cities.
Investment decisions will continue to be governed by long-term returns on investment and lifestyle factors such as proximity to workplaces, access to wellness amenities, green spaces, and vibrant community environments.
With a current market size of about USD 0.3 trillion, accounting for 6–8% of GDP, India’s real estate market has improved from a sub-5% contribution prior to 2010. The sector’s ability to generate employment across construction, services, and allied industries makes it a vital component of India’s development strategy for the future.
The sector is projected to reach a USD 10 trillion industry by 2047, potentially contributing 14–20% to India’s GDP.
Driven by rising incomes, urban migration, and premium housing demand, average property prices are projected to grow at 5–10% annually over the next few years.
This growth will be supported by improved infrastructure, government incentives for homebuyers, and a growing preference for reputed developers.
Cities like Mumbai, Bengaluru, and Delhi NCR will witness large-scale redevelopment projects supported by future-ready Floor Space Index (FSI) norms, Transferable Development Rights (TDR), and zoning regulations.
Beyond the top 7–8 established housing markets, Tier II and III cities, including spiritual hotspots, are poised for a sustained rise in housing demand in the coming decades amidst growing urbanization, demographic alignment, and infrastructure development.
According to the report, India’s median age is projected to rise to between 30 and 40 years, an age bracket that corresponds with peak earning and spending capacity.
“This demographic shift presents a strategic advantage for residential real estate, as rising income levels will keep affordability intact and provide a demand-side boost to housing sales. Although the majority of the residential offerings will largely cater to first-time homebuyers, leading developers will equally focus on the luxury segment and niche products driven by High Net Worth Individual (HNI) and Ultra-HNI demand,” the report said.
Sales of plotted developments, villas within gated communities, premium housing with concierge services, and vacation homes are expected to remain strong, as homebuyers increasingly prioritize space, exclusivity, and wellness-oriented living.
“Real estate will play a crucial role in achieving the dream of a developed India by 2047. The penetration is still very low, and buyers are looking for grade A developers who can deliver quality,” said Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd.
Investor-driven sales can expand from select pockets and product offerings to a much larger scale in newer micro-markets and cities.
Investment decisions will continue to be governed by long-term returns on investment and lifestyle factors such as proximity to workplaces, access to wellness amenities, green spaces, and vibrant community environments.
With a current market size of about USD 0.3 trillion, accounting for 6–8% of GDP, India’s real estate market has improved from a sub-5% contribution prior to 2010. The sector’s ability to generate employment across construction, services, and allied industries makes it a vital component of India’s development strategy for the future.
The sector is projected to reach a USD 10 trillion industry by 2047, potentially contributing 14–20% to India’s GDP.
Driven by rising incomes, urban migration, and premium housing demand, average property prices are projected to grow at 5–10% annually over the next few years.
This growth will be supported by improved infrastructure, government incentives for homebuyers, and a growing preference for reputed developers.
Cities like Mumbai, Bengaluru, and Delhi NCR will witness large-scale redevelopment projects supported by future-ready Floor Space Index (FSI) norms, Transferable Development Rights (TDR), and zoning regulations.
