India’s Real Estate Sector May Touch ₹5.8 Lakh Crore by 2047: FICCI-KPMG Report

India’s real estate sector is entering a new phase of transformation as technology, digital adoption and urban expansion continue to reshape the way assets are developed, marketed and transacted across the country. According to a report released during the FICCI Real Estate Summit, the sector is expected to grow from nearly ₹65,000 crore in 2025 to around ₹5.8 lakh crore by 2047, highlighting the long-term growth potential of the industry.

The FICCI-KPMG report stated that the real estate sector remains one of the biggest contributors to employment generation, infrastructure development and economic activity in India. The sector currently contributes around 7.3 per cent to the country’s Gross Domestic Product and continues to play a major role in supporting the Viksit Bharat vision through urban development and housing expansion.

Technology adoption has emerged as one of the biggest growth drivers for the industry. The report noted that artificial intelligence adoption in the corporate real estate segment surged to 91 per cent in 2025 from just 5 per cent in 2023. Industry experts believe that automation, predictive analytics and digital management systems are significantly improving operational efficiency and customer engagement across projects.

The residential segment continues to remain the backbone of the market. Residential sales across the top seven cities reached nearly 230 lakh units in 2024, supported by rising urbanisation, increasing disposable incomes and sustained housing demand. The value of new homes is expected to reach ₹90,600 crore by 2034, reflecting strong long-term confidence in the housing market.

Retail and commercial real estate segments are also witnessing strong momentum. Retail developments across the country are projected to reach 410 lakh square feet by 2028, while demand for flexible office spaces continues to rise with changing workplace trends and hybrid work culture.

Industry leaders at the summit highlighted that policy reforms, digital systems and sustainability-focused development will shape the future of Indian real estate. Green buildings, smart infrastructure and energy-efficient construction practices are expected to become major priorities for developers in the coming years.

With rising institutional investments, expanding infrastructure networks and strong housing demand, India’s real estate sector is expected to remain a key driver of economic growth and job creation over the next two decades.