Summary of this article
Real estate contributes nearly seven per cent of GVA.
Construction supports 12 per cent of employment.
Emerging cities will shape future real estate growth.
Indian real estate sector can play a central role in the country's journey towards becoming a developed economy by the year 2047. The real estate sector is serving as a foundation for economic growth, investment, and urban transformation, according to the ASSOCHAM-Knight Frank knowledge report, Building Viksit Bharat: Real Estate as a catalyst for growth.
Real Estate’s Wider Economic Role
The report highlights how the broad role played by real estate and construction in the Indian economy is defining the speed at which India develops. Real estate and ownership have contributed to nearly seven per cent of India’s annual Gross Value Added (GVA) over the past decade. Construction, however, has accounted for approximately 12 per cent of the total employment in 2025. This underlines the sector’s importance as a major source of economic activity and job creation.
The report views real estate as more than just a residential and commercial property sector. It provides a physical foundation for households, businesses, services, and logistics, while supporting emerging areas such as digital infrastructure.
This makes the real estate sector an important part of India's broader urban and economic transformation, especially as cities expand and demand for infrastructure, housing, and commercial spaces takes up more and more space.
Growth Must Extend Beyond Top Eight Cities
Gulam Zia, senior executive director, Knight Frank India, highlighted the need for the next phase of India’s real estate growth to see and grow beyond the country’s top eight cities.
“The next phase of growth cannot be measured only by what is happening in the top eight cities; we need to bring emerging cities and affordable housing into the mainstream of India’s real estate story,” says Zia.
Digital Land Records And Regulation
He further highlighted regulatory and governance reforms as key requirements for unlocking the sector’s potential. “The government is going to play the role of a facilitator in the coming days, but overall, it is going to be the private sector that’s going to uplift the city.” He highlighted land pooling, redevelopment, transit-oriented development and high-density corridors as important components of Delhi’s future growth and housing affordability,” said D. Thara, secretary, department of capital development, Ministry of Housing and Urban Affairs.
Industry representatives also called for time-bound approvals, standardised processes and greater regulatory rules in place. Land pooling, real estate investment trusts (REITs), and substantial urban infrastructure were identified as areas with potential to support future development.
Overall, the report positions the real estate sector as a key enabler of India’s economic and urban transformation. Expanding growth to emerging cities, affordability, digitising land governance, regulations and encouraging private sector participation will be critical to building a transparent and resilient ecosystem in real estate.
