Housing prices to increase 5–10% annually; Sales may double to 10 lakh units by 2047: CII–Colliers
Housing prices in India are expected to rise by 5–10% annually over the next few years, on the back of strong demand, according to a joint report by CII and Colliers. The report forecasts that annual housing sales could climb from the current 3–4 lakh units to 5 lakh units by 2030 and potentially double to 10 lakh units by 2047. This growth will be supported by rising household incomes, favorable demographics, and progressive housing policies.
Industry body CII and property consultant Colliers India released a report on November 6 titled ‘Real Estate @2047: Building India’s Future Growth Corridors’ at a conference held in the Capital. The report was released by Harleen Kaur, Deputy Secretary, Ministry of Road Transport and Highways.
Supported by increasing household incomes, favourable demographic trends, and forward-looking housing policies, India’s residential real estate market is expected to witness a significant surge in demand, reaching 5 lakh units annually by 2030 and potentially doubling to 10 lakh housing units by 2047, the report noted.
“Furthermore, 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,” it said.
First time homebuyers likely to dominate housing demand
With median age steadily increasing to 30-40 years in the next few decades and corresponding with peak earning capacity, first-time homebuyers are likely to dominate housing demand, it said.
In addition to the affordable segment, luxury housing and niche offerings for High-Net-Worth Individuals (HNIs) and ultra-HNIs will gain traction, alongside plotted developments, villas, and wellness-oriented living spaces, it noted.
Tier II and III cities to gain traction
Tier II/III cities, including spiritual hubs, are already emerging as vibrant housing markets amidst rapid urbanization and infrastructure upgrades. Further, redevelopment projects, aided by future-ready building development norms, Transferrable Development Rights (TDR) and zoning regulations hold enormous potential to transform urban skylines and meet demand-supply gap in established markets such as Mumbai, Bengaluru, and Delhi NCR, it said.
Real estate market size to surge from $0.3 trillion in 2025 to $5-10 trillion by 2047
India’s real estate sector is expected to grow from nearly $0.3 trillion today to a $5–10 trillion market by 2047. This ongoing surge positions real estate as a cornerstone of India’s economic ascent, potentially contributing 14–20% of the GDP by 2047, shaping the vision of Viksit Bharat under the Amrit Kaal roadmap, it noted.
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Commercial and industrial segments stand to benefit from enhanced infrastructure-led connectivity, digitalization, and green mandates, which will support the decentralization of office hubs and manufacturing clusters across Tier II and III cities. Concurrently, technological advancements, especially in AI, will drive the growth of data centers and smart city infrastructure, it noted.
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The multiplier effect of policy initiatives, infrastructure development and inherent demand drivers is set to catalyze Indian real estate, propelling it to a $5-10 trillion market by 2047, a growth of over 20X times compared to current levels. Driven by rapid urbanization, India can potentially have nearly 100 cities with a million-plus population by 2047. In addition to India’s demographic patterns, amplifying consumption levels, infrastructure development, digitalization, tourism growth and sustainability priorities can elevate the real estate landscape across multiple cities and asset classes, it said.
“India’s infrastructure expansion is reshaping the real estate landscape, unlocking new growth corridors and transforming Tier II and III cities. Real estate and infrastructure are two vital sectors which will reinforce each other. Expressways and industrial corridors will increasingly enhance connectivity, transforming land usage in catchment areas, accelerating urban development, and creating commercially viable economic hotspots,” said Harleen Kaur, Deputy Secretary, Ministry of Road Transport and Highways, Government of India.
“India is firmly on the path of becoming a developed nation by 2047, powered by demographic strengths, progressive policies, and a collective vision of inclusive growth. Within the residential segment, policy push in the form of PMAY, RERA, infrastructure status to affordable housing, SWAMIH fund etc. have improved housing accessibility and last-mile financing, while enhancing transparency,” said Pradeep Aggarwal, founder and chairman, Signature Global India Ltd.
“The ongoing real estate transformation will be characterized by significant scaling up across asset classes. In addition to demand traction in core assets such as office, residential and industrial and warehousing we anticipate quantum growth in alternative asset classes such as data centers and shared living,” said Badal Yagnik, Chief Executive Officer and Managing Director, Colliers India.
