New Delhi : India’s real estate sector is projected to witness a massive expansion over the next two decades and could grow to nearly $5.8 trillion by 2047, according to a joint report by FICCI and KPMG.
The report highlights that the sector, currently valued at around $650 billion, is expected to expand nearly nine times, driven by rapid urbanisation, infrastructure development, rising income levels and growing institutional investment.
AI driving transformation
A key highlight of the report is the rapid adoption of technology in the real estate industry. Artificial intelligence (AI) adoption in the sector has surged from less than 5% in 2023 to about 91% in 2025, marking a major digital shift.
According to the report, AI and other emerging technologies are now being integrated across the entire real estate value chain — from planning and design to construction, sales, and asset management.
Digital technologies reshaping the sector
The report states that technologies such as digital twins, blockchain, drones, building information modelling (BIM), and Internet of Things (IoT) are increasingly being used to improve efficiency, transparency, and project execution.
This technological transformation is also improving investor confidence and making the sector more structured and data-driven.
Economic contribution and growth outlook
At present, India’s real estate sector contributes around 7.3% to the country’s GDP and remains one of the largest employment generators.
The report also notes growing participation from institutional investors and foreign players, supported by regulatory reforms and digital land record systems.
Strong long-term outlook
Experts believe that with continued policy support, urban expansion, and technology adoption, India’s real estate sector is set to become one of the key pillars of economic growth by 2047, aligning with the vision of a developed India.