India's Real Estate Market Set to Reach $5.8 Trillion by 2047 Amid Digital Transformation
Real estate market to grow to $5.8 trn by 2047 as digital adoption accelerates amid cost and compliance pressures
Hindustan Times
Image: Hindustan Times
India's real estate sector, valued at $650 billion, is projected to grow to $5.8 trillion by 2047 due to increased digital adoption. Technologies like AI, blockchain, and IoT are enhancing efficiency and transparency, driven by rising costs and informed homebuyers, according to a report by FICCI and KPMG.
- 01India's real estate market is expected to grow from $650 billion in 2025 to $5.8 trillion by 2047.
- 02The adoption of technologies like AI and blockchain is transforming the sector, improving efficiency and transparency.
- 03Over $16 billion has been unlocked through real estate investment trusts (REITs) and infrastructure investment trusts (InvITs).
- 04Government reforms are modernizing land registration systems, with 360 million land parcels assigned unique identifiers.
- 05The residential market is projected to reach $906 billion by 2034.
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India's real estate sector, currently valued at $650 billion, is on the brink of a significant transformation, with projections indicating it could grow to $5.8 trillion by 2047. This growth is fueled by the increasing adoption of digital technologies such as artificial intelligence (AI), blockchain, and the Internet of Things (IoT), which are enhancing operational efficiency and transparency. A report by the Federation of Indian Chambers of Commerce & Industry (FICCI) and KPMG highlights that the corporate sector's use of AI will surge to 91% by 2025, up from less than 5% in 2023. Key drivers for this shift include rising costs, stricter regulatory compliance, and a more informed consumer base. The report also notes that over $16 billion has been unlocked through real estate investment trusts (REITs) and infrastructure investment trusts (InvITs), indicating a trend towards institutional management of real estate. Additionally, government initiatives are modernizing land and registration systems, with 360 million land parcels now assigned unique geo-referenced identifiers. The residential real estate market is projected to reach $906 billion by 2034, reflecting the growing demand driven by India's young population. Stakeholders are urged to embrace digital transformation to sustain growth in this vital sector.
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The digital transformation in the real estate sector will lead to greater efficiency and transparency, benefiting homebuyers and investors alike.
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