Indian Real Estate Market Projected to Hit US$ 5.8 Trillion by 2047 as AI Adoption Surges to 91%
New Delhi, May 8, 2026: The Indian real estate sector is poised for an extraordinary metamorphosis, with its market value projected to skyrocket from US$ 650 billion in 2025 to a staggering US$ 5.8 trillion by 2047. This landmark forecast was unveiled in the ‘FICCI-KPMG Report: Reimagining India’s Real Estate Landscape,’ released today during the 19th edition of the FICCI Real Estate Summit. The report highlights a sector in the midst of a digital revolution, noting that AI adoption in the corporate real estate space has surged from a mere 5 per cent in 2023 to 91 per cent in 2025, signaling a fundamental shift in how assets are developed and managed, FICCI said in a press release.
Currently contributing 7.3 per cent to the national GDP, real estate is emerging as a primary engine for the “Viksit Bharat” vision. The sector’s expansion is supported by massive projections in specific segments, including a US$ 906 billion valuation for new homes by 2034 and the anticipated development of 41 million square feet of new retail space by 2028. Industry experts noted that as projects grow in complexity, technology is no longer just a front-end tool but is being integrated across the entire lifecycle, from planning to final sales.
Addressing the summit, Anand Kumar, Chairman of the Real Estate Regulatory Authority (RERA), NCT of Delhi, emphasized the need for integrity and collective action. “I urge all stakeholders to be honest, to move beyond individual interests, and to make this sector more efficient and transparent,” he stated. Kumar also called for a strategic focus on Tier 2 and Tier 3 cities to alleviate pressure on metropolitan hubs, adding, “We must be innovative and act as a catalyst to attract not just domestic but also foreign investments into the real estate sector and aim for higher growth rates of 20-25 per cent.”
The regulatory landscape is also witnessing rapid scaling, particularly in Uttar Pradesh. Sanjay R. Bhoosreddy, Chairman of UP RERA, highlighted that the state is on track to sanction 400 new projects this year, a sharp rise from 190 per annum just three years ago. “The RERA Act of 2016 has ensured a level playing field for all promoters as well as between promoters and buyers. The State Government is putting in place investor-friendly policies to strengthen the sector further,” Bhoosreddy remarked, while also proposing a ‘Consumer Samadhan Divas’ to prioritize buyer trust.
Industry leaders echoed the sentiment that technological discipline is now the industry’s backbone. Raj Menda, Chairman of the FICCI Committee on Urban Development and Real Estate, observed that “India’s real estate sector has earned its place as one of the most consequential growth stories in the world.” He further asserted, “The evidence is unambiguous: AI adoption in India’s corporate real estate moved from under 5 per cent to 91 per cent in just two years. The sector has already made its collective judgment. Technology is no longer a point of differentiation; it is a condition for access to capital and trust.”
The residential market remains the cornerstone of this growth, currently making up two-thirds of the total real estate landscape. Vipul Roongta of HDFC Capital Advisors noted that an aspirational young population will continue to fuel this demand, stating, “If any major economy has to grow, then it can do so on the back of the mortgage industry and residential industry.” Supporting this view, Sandip Somany, Past President of FICCI, concluded that “India’s real estate sector is entering a new phase of growth, backed by rising investor confidence and steady demand,” reflecting the sector’s vital role in the nation’s broader economic resilience.
