Summary of this article
Real estate market may reach $1 trillion
Tier II cities are gaining buyer interest
Infrastructure could shape future housing demand
The Confederation of Real Estate Developers’ Association of India (CREDAI) had highlighted the growing importance of real estate in India’s next phase of economic and urban growth at NATCON held in Kolkata. The key focus for buyers is that housing opportunities could increasingly extend beyond India’s traditional metropolitan centres. CREDAI noted that Tier II and Tier III cities are emerging as new centres of real estate activity, alongside the growth of sectors such as data centres, warehousing and hospitality. This could give buyers more locations to consider as residential and economic activity expands beyond established property markets.
CREDAI’s report, prepared in collaboration with ANAROCK Research and Advisory, estimates that India’s real estate market has grown from USD 120 billion in 2017 to around USD 600 billion in 2025. It is projected to reach USD 1 trillion by 2030 and nearly USD 5.8 trillion by 2047. The real estate sector’s contribution to India’s GDP is projected to increase from 6 per cent in 2017 to approximately 13 per cent by 2030, while employment in real estate is expected to increase the economic importance of housing and related development in India.
“Real estate is entering a phase where technology and innovation will influence every part of the business, from how we understand customers and market projects to how we plan, build and operate them. AI, in particular, has the potential to enable better decision-making, improve efficiencies and create more responsive businesses. For the industry, the opportunity is not simply to adopt new technologies, but to use them meaningfully to build a more productive, transparent and future-ready sector,” says Shekhar G. Patel, President, CREDAI.
Residential Demand Remains Strong
The latest numbers indicate a sustained demand for homes in the leading cities in India, which are Mumbai Metropolitan Region (MMR), Delhi-NCR, Bengaluru, Pune, Chennai, Hyderabad and Kolkata. Residential sales value has increased from Rs 2.35 lakh crore in FY22 to Rs 6.10 lakh crore in FY26 in the top seven cities in India. Quarterly residential sales have remained above Rs 1.3 lakh crore for seven consecutive quarters. As for the prospective buyers, continued demand means that location selection could become more important. Buyers looking for a home or an investment may need to assess not only current infrastructure and amenities but also how a city or locality is expected to develop over a long period of time.
Infrastructure Opens Up New Housing Markets
Kolkata and West Bengal are highlighted as areas with huge developmental potential. CREDAI has said improving infrastructure and connectivity could strengthen economic corridors, connect emerging cities with larger development networks, while creating opportunities for housing, businesses and investments. For homebuyers, better connectivity can be an important consideration when evaluating an emerging location. However, the development potential of a locality should be assessed alongside actual infrastructure availability, employment opportunities and access to essentials.
Technology is another shift identified by CREDAI. AI use and inclusion have increasingly been used across real estate, including sales, marketing, planning, construction, and customer engagement. The technology could enable developers to understand markets and customers better while improving project monitoring and operational efficiency. Greater technology adoption can eventually mean more data-driven property discovery, communication, and project monitoring for homebuyers.
For homebuyers, this makes it important to look beyond the immediate price of a property. Connectivity, employment growth, infrastructure, city-level development and the credibility of the developer could become more important factors when choosing a home.
As India moves towards its next phase of urban growth, the changing real estate landscape could give buyers more choices, while also making informed choices regarding location and project selection.
