New Delhi, Oct 23 — The real estate industry of India is on track to reach 5.8 trillion by 2047 and has expanded fivefold since 2017 due to several factors such as rising institutional investment, deepening domestic capital pools and strong demand across, a report said on Friday.
According to a joint report by Anarock and FICCI, the sector was valued at about $600 billion in 2025, compared with $120 billion in 2017 and is projected to grow to $1 trillion by 2030.
Real estate's contribution to India's gross domestic product is expected to increase to 13 per cent by 2030 from about 6 per cent in 2017, it added.
However, 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.
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.
Anarock Chairman Anuj Puri 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 report further showed that the country’s real estate funding ecosystem has evolved from being dominated by promoter equity and buyer advances to drawing capital from global private equity funds, sovereign wealth funds, domestic alternative investment funds (AIFs), public equity markets and real estate investment trusts (REITs).
Meanwhile, private equity (PE) investment in the domestic realty industry has remained resilient with 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.
In addition, deal sizes have also increased significantly with transactions above $100 million accounting for 76 per cent of total PE value between 2021 and 2025, compared with 44 per cent during 2011-2015.
The report said domestic funds invested $2.6 billion in the first nine months of 2026, compared with $0.4 billion in 2020, while their share of total PE investment increased to 42 per cent from 8 per cent over the same period.
Foreign capital remains dominant but domestic capital is growing much faster, supported by the rapid expansion of AIFs.
Total AIF commitments rose to Rs 17.53 lakh crore in June 2026 from Rs 3,47,802 crore in December 2019.
The report said demand fundamentals remain strong across major asset classes.
Residential sales value in India's top seven cities reached a record Rs 6.1 lakh crore in fiscal 2026 which is more than double the level recorded in fiscal 2022.
Office demand has also strengthened with gross absorption in the top seven cities reaching a record 80.5 million square feet in 2025, more than double the level seen in 2021.