India’s real estate sector is on the brink of a monumental transformation, with projections indicating that it will become a $4.8 trillion market by 2047. According to a joint report by EY and the Confederation of Real Estate Developers’ Associations of India (CREDAI), the real estate sector’s contribution to the country’s GDP is expected to surge from the current 7% to 18% as India’s economy expands to a projected $26 trillion by mid-century.

Proptech to Play a Pivotal Role in Future Growth

One of the key takeaways from the report, released on November 26, is the significant rise of the proptech sector. Set to exceed $600 billion by 2047, proptech is projected to constitute nearly 12-13% of the entire real estate industry, a sharp increase from its current share of less than 5%. The report emphasizes how technologies such as artificial intelligence (AI), the internet of things (IoT), and building information modeling (BIM) are already reshaping operations within the sector, improving efficiency, and ensuring greater transparency.

Technological Revolution Transforming Real Estate

The ongoing technological revolution is being recognized as a crucial factor in the growth of India’s real estate sector. These innovations are streamlining the entire real estate value chain, from development and construction to property management and sales. The shift to digital platforms and the integration of smart technologies are making the sector more responsive to market demands and urbanization trends.

CREDAI’s Vision for a Developed Economy by 2047

Manoj Gaur, chairman of CREDAI, highlighted the importance of embracing forward-thinking strategies to meet the demands of an urbanizing population. As the sector evolves, it must focus on sustainable and efficient solutions that align with India’s broader growth aspirations. Gaur also underscored the need to redefine affordable housing parameters to reflect the changing economic landscape, enabling greater access to housing for India’s expanding middle class.

Infrastructure Initiatives Fueling Regional Growth

India’s macro-level infrastructure projects, including the National Infrastructure Pipeline (NIP) and PM Gati Shakti, are seen as key drivers for the real estate sector’s expansion. These initiatives, aimed at enhancing transportation networks such as roads, railways, airports, and ports, are unlocking new real estate opportunities, particularly in Tier 2 and 3 cities. Cities like Indore, Surat, Jaipur, and Agra are emerging as new investment hotspots, with infrastructure projects fueling demand for residential and commercial properties.

A Shift Toward Sustainable and Technological Integration

CREDAI president Boman Irani emphasized that India’s real estate sector is at a critical juncture, characterized by rapid urbanization, technological integration, and a shift towards more sustainable development practices. He noted that the sector’s transformation is critical to India’s broader economic goals, including the vision of achieving a “Viksit Bharat” by 2047.

Policy Reforms Essential for Accelerating Growth

To further accelerate the sector’s growth, CREDAI has called for several key policy reforms. These include granting the real estate sector industry status, redefining affordable housing to address current economic realities, and ensuring the availability of land through effective zoning and streamlined acquisition policies. Additionally, the implementation of the input tax credit scheme is seen as a crucial step to support developers and stimulate investment.

As India marches toward its goal of becoming a developed nation by 2047, the real estate sector will continue to play a pivotal role, driving both economic growth and urban development across the country.