India’s real estate industry is projected to reach $5.8 trillion by 2047, following a fivefold expansion between 2017 and 2025, according to a joint report by Anarock and FICCI released on Friday.
The sector’s value increased from $120 billion in 2017 to approximately $600 billion in 2025. The report projects the industry will reach $1 trillion by 2030, supported by institutional investment, expanding domestic capital pools and demand across asset classes.
Real estate’s contribution to India’s gross domestic product (GDP) is also expected to rise to 13 per cent by 2030, from around 6 per cent in 2017.
However, the value of real estate under construction nearly doubled between 2019 and 2025. Residential projects accounted for approximately 85 per cent of the total value.
Institutional investment reshapes India’s real estate industry
Raj Menda, chairman of FICCI’s Committee on Urban Development and Real Estate, said deeper domestic capital markets, streamlined project approvals and growth beyond major metropolitan areas would be critical to sustaining expansion.
Anarock Chairman Anuj Puri said India’s property market was increasingly emerging as a long-term institutional asset class rather than a cyclical investment driven by land prices.
He added that domestic savings, operating assets and larger investment platforms would shape the sector’s next phase of growth.
The report highlighted a shift in real estate funding. The industry, previously reliant on promoter equity and buyer advances, now attracts capital from global private equity funds, sovereign wealth funds, domestic alternative investment funds (AIFs), public equity markets and real estate investment trusts (REITs).
Private equity investment reaches $6.1 billion in 2026
Private equity (PE) investment in India’s real estate sector remained resilient, absorbing up to $7.7 billion annually between 2015 and 2025.
Disclosed PE investments reached $6.1 billion across 55 deals during the first nine months of 2026. Data centres attracted $2.5 billion, while office assets received $1.7 billion.
Large transactions also accounted for a growing share of investment. Deals exceeding $100 million represented 76 per cent of total PE investment value between 2021 and 2025, compared with 44 per cent during 2011-2015.
Domestic funds invested $2.6 billion in the first nine months of 2026, up from $400 million in 2020. Their share of total PE investment increased to 42 per cent from 8 per cent over the same period.
Although foreign capital remains dominant, domestic investment is growing faster, supported by the expansion of AIFs. Total AIF commitments rose to Rs 17.53 lakh crore in June 2026, from Rs 3,47,802 crore in December 2019.
Residential and office demand supports sector growth
Demand remained strong across major real estate segments, according to the report.
Residential sales value across India’s top seven cities reached a record Rs 6.1 lakh crore in fiscal 2026. This was more than double the level recorded in fiscal 2022.
Office demand also strengthened. Gross office absorption across the top seven cities reached a record 80.5 million square feet in 2025, more than double the level recorded in 2021.
The report’s projections indicate that continued institutional investment, stronger domestic funding and sustained demand across residential and commercial assets could support the industry’s long-term expansion. It also identifies streamlined approvals and development beyond major metropolitan markets as important factors in sustaining growth through 2047.
