India's real estate sector is on course to reach $5.8 trillion by 2047, according to a joint report released on Friday, 23 October 2026 by Anarock and the Federation of Indian Chambers of Commerce and Industry (FICCI). The sector has already expanded fivefold since 2017, driven by rising institutional investment, deepening domestic capital pools, and broad-based demand across asset classes.

Where the Sector Stands Today

The Anarock-FICCI report valued India's real estate industry at approximately $600 billion in 2025, up from just $120 billion in 2017. The sector is projected to cross $1 trillion by 2030. Real estate's contribution to India's gross domestic product is forecast to climb to 13 per cent by 2030, from roughly 6 per cent in 2017 — more than doubling its share of the economy in little over a decade.

Notably, the value of real estate under construction nearly doubled between 2019 and 2025, with residential projects accounting for roughly 85 per cent of the total pipeline.

Private Equity Flows and Domestic Capital Rise

Private equity investment in Indian real estate has remained resilient, absorbing up to $7.7 billion annually between 2015 and 2025. In the first nine months of 2026, disclosed PE investments had already reached $6.1 billion across 55 deals, led by data centres at $2.5 billion and office assets at $1.7 billion.

Deal sizes have grown sharply: transactions above $100 million accounted for 76 per cent of total PE value between 2021 and 2025, compared with just 44 per cent during 2011–2015. Domestic funds invested $2.6 billion in the first nine months of 2026, against $0.4 billion in 2020, with their share of total PE investment rising to 42 per cent from 8 per cent over the same period.

Total Alternative Investment Fund (AIF) commitments surged to ₹17.53 lakh crore in June 2026, up from ₹3,47,802 crore in December 2019 — a transformation that the report attributes to the rapid expansion of domestic AIFs as a vehicle for real estate capital.

Residential and Office Demand at Record Highs

Demand fundamentals remain strong across major asset classes, according to the report. Residential sales value in India's top seven cities reached a record ₹6.1 lakh crore in fiscal 2026 — more than double the level recorded in fiscal 2022. Office demand has kept pace, with gross absorption in the top seven cities reaching a record 80.5 million square feet in 2025, also more than double the 2021 figure.

What Industry Leaders Said

Raj Menda, Chairman of FICCI's Committee on Urban Development and Real Estate, said deepening domestic capital markets, streamlining project approvals, and expanding growth beyond major metropolitan areas would be critical to sustaining the sector's expansion.

Anuj Puri, Chairman of Anarock, said India's real estate market was 'increasingly becoming a long-term institutional asset class rather than a cyclical play on land prices,' with domestic savings, operating assets, and larger investment platforms expected to shape the next phase of growth.

The Road to 2047

The report traces a structural shift in how the sector is funded — from promoter equity and buyer advances toward capital from global private equity funds, sovereign wealth funds, domestic AIFs, public equity markets, and real estate investment trusts (REITs). Foreign capital remains dominant, but domestic capital is growing considerably faster. With the sector's 2047 target of $5.8 trillion implying nearly a tenfold jump from current levels, execution on approvals reform and geographic diversification will determine whether the projection holds.