India’s real estate sector is poised for unprecedented growth, with the market expected to expand from approximately US$ 650 billion in 2025 to nearly US$ 5.8 trillion by 2047, according to the latest report jointly released by Federation of Indian Chambers of Commerce and Industry and KPMG.
Titled Reimagining India’s Real Estate Landscape: The Role of Technology in Value Chain Transformation, the report was unveiled during the 19th edition of the FICCI Real Estate Summit and highlights how artificial intelligence, digital transformation, policy reforms, and strong housing demand are reshaping the sector.
Real Estate: A Pillar of India’s Economic Growth
The report notes that the real estate sector currently contributes 7.3% to India’s GDP and remains one of the country’s largest generators of employment and capital formation. As India moves toward its Viksit Bharat 2047 vision, real estate is expected to play an increasingly important role in driving productivity, urban development, and large-scale job creation.
Industry experts believe that the sector’s long-term expansion will be supported by:
- Rising urbanisation and housing demand
- Institutional and foreign investments
- Digital approvals and streamlined regulations
- Growing mortgage penetration
- Adoption of AI and data-driven planning
Technology Becoming Central to Real Estate
One of the key insights from the report is the rapid rise in technology adoption across the real estate value chain. Rather than being limited to marketing and customer engagement, technology is now being embedded across planning, approvals, construction, financing, and sales.
Raj Menda, Chairman of the Supervisory Board at RMZ Corp, highlighted that AI adoption in India’s corporate real estate sector surged from less than 5% to 91% in just two years.
According to him, technology has evolved from a differentiator to a prerequisite for building investor trust and attracting institutional capital.
Regulatory Push for Transparency and Efficiency
Anand Kumar, Chairman of Real Estate Regulatory Authority Delhi, called on all stakeholders to work collectively to improve transparency and efficiency within the sector. He emphasised the importance of increasing awareness about the Real Estate (Regulation and Development) Act, 2016 among both buyers and developers.
He also stressed the need to accelerate development in Tier II and Tier III cities to reduce migration pressure on metropolitan regions and unlock new investment opportunities.
Uttar Pradesh Real Estate Gaining Momentum
Sanjay R. Bhoosreddy, Chairman of Uttar Pradesh Real Estate Regulatory Authority, noted that real estate will play a major role in helping Uttar Pradesh achieve its ambitious US$ 1 trillion economy target.
He revealed that project approvals in the state have increased significantly:
- Around 190 projects annually until 2023
- 259 projects in 2024
- 308 projects in 2025
- 108 projects already approved in the current year
Bhoosreddy also proposed a dedicated “Consumer Samadhan Divas” to address homebuyer grievances in a structured and timely manner.
Residential Segment to Drive Future Growth
Vipul Roongta of HDFC Capital Advisors noted that nearly two-thirds of India’s real estate market is residential. With a young and aspirational population, demand for housing is expected to remain strong over the coming decades.
He emphasised that sustained growth in the mortgage and housing finance ecosystem will be essential to unlocking the sector’s full potential.
Investor Confidence Remains Strong
Sandip Somany, Chairman and Managing Director of Somany Impresa Group, stated that India’s real estate market is entering a new era of growth, supported by steady demand and increasing investor confidence.
Also Read: NCR’s First Co-Developer Policy: A Game Changer for Real Estate Collaboration
Outlook: A Technology-Driven Real Estate Future
The FICCI-KPMG report concludes that the convergence of technology, regulatory reforms, and consumer-centric development models will define the future of Indian real estate.
Artificial intelligence, digital approvals, data-driven planning, and lifecycle-based project management are expected to transform how properties are developed, financed, and experienced. As these trends accelerate, India’s real estate sector is set to become more transparent, efficient, and globally competitive.
With robust policy support and growing institutional participation, the industry appears well-positioned to emerge as one of the most significant contributors to India’s economic transformation over the next two decades.
