A major new report suggests an optimistic future for the residential property market, predicting a consistent annual price appreciation of 5-10% over the coming years. This forecast is part of a joint study by the Confederation of Indian Industry (CII) and property consultant Colliers India, titled ‘Real Estate @2047: Building India’s Future Growth Corridors,’ which outlines the sector’s path toward becoming a $10 trillion industry.
The report highlights that the housing sector is set for a monumental transformation, driven by strong underlying economic and demographic forces. This is more than just a short-term upswing, it is a fundamental shift that will redefine the shape of urban living in the country.
The numbers behind the surge
The figures projected by the report are substantial, painting a picture of dramatic, long-term India Housing Growth.
Currently, annual residential sales stand at approximately 3-4 lakh (300,000–400,000) units. The report projects that this volume could reach 1 million (10 lakh) units annually by 2047. This massive increase in sales will be mirrored by the overall market value. The real estate sector, which is valued at about $0.3 trillion today, is expected to surge to between $5 trillion and $10 trillion by 2047. This growth is seen as a cornerstone of India’s ambition to become a fully developed economy.
What’s driving demand?
The projected price and sales growth is not accidental; it is supported by several key national trends:
1. Demographic advantage and income
As the country’s young population enters their peak earning years (typically between 30 and 40), the number of people ready and able to buy a home will surge. This demographic shift, combined with rising household incomes, is ensuring that property remains affordable for a larger segment of the population, providing a continuous boost to demand.
2. Infrastructure as a catalyst
Improved infrastructure is playing a crucial role in unlocking new growth corridors. The expansion of national expressways, industrial corridors, and modern transit systems is transforming land usage and accelerating urban development. These connectivity improvements create commercially viable economic hubs, allowing people to live further away from main city centers while maintaining access to workplaces. Simply put, better roads and rail are making more locations desirable for homeownership.
3. Supportive policies and developers
The market is being stabilized by forward-looking housing policies and government incentives aimed at home buyers. Furthermore, there is a growing trend of buyers preferring to deal with reputed developers. This increased trust and stability in the market contribute significantly to the long-term confidence and appreciation of property values.
New centers of housing Activity
While large metropolitan areas like Mumbai and Delhi-NCR will continue to see growth, often through major redevelopment projects, the next wave of India Housing Growth is expected in smaller cities.
Tier II and Tier III cities, including emerging spiritual or regional hubs, are rapidly evolving into vibrant housing markets. They are benefiting directly from urbanization and the expansion of modern infrastructure, making them increasingly attractive as residential destinations.
Beyond standard residential properties, the market is diversifying. Affordable housing will remain a pillar of demand, but luxury housing is also expected to gain momentum, driven by High-Net-Worth Individuals (HNIs). Additionally, specialized segments like senior living facilities are beginning to emerge as an important market in response to the country’s aging population.
The report ultimately concludes that the real estate and infrastructure sectors are vital partners, mutually reinforcing each other to ensure sustainable, transformative growth for the nation over the next two decades.
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Disclaimer
The information in this article is based on the findings and projections of the CII-Colliers report and should not be considered financial or investment advice. Readers must conduct their own due diligence.
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