India’s Housing Sales Likely To Touch 8-10 Lakh Units A Year By 2047 Vs 3-4 Lakh This Year: Report | Real Estate News

The contribution of real estate sector to the GDP has grown steadily — from under 5% in the early 2000s to 6-8% today.

India’s real estate sector is racing ahead on factors such as rapid urbanisation, massive infrastructure development and growing opportunities for employment including high-paying jobs with the expansion of GCCs among others. According to a report by Colliers in collaboration with the Confederation of Real Estate Developers’ Association of India (CREDAI), India’s housing sales may touch 8-10 lakh units annually in 2047 from the expected 3-4 lakh unit annual sales in 2025.

Demand has peaked post-pandemic on the back of homebuyers’ preference and shifting towards larger spacious homes in peripheral areas of Tier I cities. Luxury housing and second homes also gained traction.

The report, titled ‘Indian real estate: Fostering equity and fueling economic growth’, said that the number of housing units sold has grown at a rapid pace since the year 2000 where less than 1 lakh units were sold annually. This grew to approximately 3 lakh unit annual sales in 2010.

The decade between 2010-2020 was defined by defining regulations and some unforeseen events that not only regulated the sector but also saw sales and launches decline to historic lows, namely RERA, GST, insolvency and bankruptcy code and COVID-19 pandemic.

In the 2010s, urban migration driven by IT led to a surge in demand for housing across Tier I cities of the country. Furthermore, the Real Estate (Regulation & Development) Act (RERA) brought in the much-needed transparency & accountability. Although housing sales took a hit in the immediate aftermath of the COVID-19 pandemic, the segment bounced back subsequently on a stronger footing — evident by record breaking sale volumes in recent years, the report added.

Cities that have so far remained under the radar like Delhi and some like Bengaluru and parts of NCR have the potential for future growth thereby helping the sector propel to projected 8-10 lakh unit annual sales by 2047, according to the report.

Ankur Jalan, CEO, Golden Growth Fund, a cat-II real estate focused alternative investment fund said, “Delhi’s real estate sector will play a key role going forward. As the government creates more housing and office supplies, the backward migration of population into the national capital will help stabilize the northward movement of prices recently witnessed in the NCR region, mainly in Gurugram and Noida, leading to crowding out of actual homebuyers. With the kind of infrastructure that is being created to de-congest Delhi, the premium real estate here has the potential for further expansion.”

The contribution of real estate sector to the GDP has grown steadily — from under 5% in the early 2000s to 6-8% today.

This is projected to reach 14–20%, positioning it as a potential $10 trillion growth catalyst by 2047, the report said.

Bengaluru, the silicon city, today is amongst the most promising real estate markets. Despite the challenges in urban infrastructure, the city is witnessing large scale migration for high-paying jobs as GCCs and domestic companies sound bullish on expansion. City peripherals are witnessing a surge in housing supply as end-user demand moves outwards in search of serenity and peace.

Umesh Gowda HA, Chairman & Founder, Sanjeevini Group said, “Bengaluru is all set to breach Rs 1 lakh crore in sales in 2025/26. While most of the demand in the city is end-user driven owing to ample employment opportunities, the city is witnessing a lot of demand from micro markets in the city peripherals that provide not just easy access but also low-density living, serenity and peace. This is evident from the price appreciation seen in city peripherals as compared to prime areas of Bengaluru, a case in point being Gunjur which witnessed 69% average price growth in the last six years as compared to prime area Thannisandra Main Road which saw 62% average price rise.”

More transformative policies and next-level infrastructure development will play the catalyst for next-wave of real estate growth.

Vijay Harsh Jha, founder and CEO of VS Realtors, a city-based property consultancy said, “Gurugram has done exceptionally well, post-pandemic both in terms of new micro-markets that have attracted investors but also in terms of price appreciation. With Noida International Airport becoming operational in the coming years alongside accompanied infrastructure like metro rail, rapid rail, expressways and highways, that part of the city will see renewed interest followed by outskirts of Gurugram. NCR’s infrastructure development has been nothing short of exemplary over the past decade with connectivity becoming its USP.

The report added that office and industrial & warehousing stock may cross 2 billion sq ft by 2047, Retail, hospitality and alternate segments can potentially grow multi-fold levels and share of REITs in real estate market capitalization likely to be at 40-50% by 2047, up from current levels of 10%.