NEW DELHI. India’s real estate market is projected to expand nearly nine-fold to USD 5.8 trillion by 2047. A joint report by FICCI and KPMG notes the sector stood valued at USD 650 billion in 2025. The report highlights that a major digital transformation now drives Indian real estate growth. AI adoption in the corporate sector surged to 91 per cent in 2025 from under 5 per cent in 2023.
Raj Menda, Chairman of the FICCI Committee on Urban Development, stated that technology is now a condition of trust. Currently, the real estate sector contributes 7.3 per cent to the national GDP. The rapid Indian real estate growth continues to position the industry as a leading employment generator.
Technology Integration and Digital Reforms
The report titled “Reimagining India’s Real Estate Landscape” details the role of Building Information Modelling and digital twins. Developers use drone-based tracking and IoT-enabled systems to improve execution and transparency across the value chain. Government-led reforms have assigned geo-referenced unique identifiers to over 360 million land parcels across 29 states. Blockchain-enabled systems have already verified more than 340 million property documents to reduce disputes. These technological advancements are essential for sustaining Indian real estate growth and improving capital efficiency. Neeraj Bansal of KPMG in India noted that the sector is moving toward integrated, technology-led platforms. Nearly 89 per cent of sub-registrar offices are now integrated with revenue systems for real-time updates.
Institutional Participation and Urban Expansion
Notably, institutional participation is growing, with over USD 15.8 billion already unlocked through REITs and InvITs. Foreign firms leased a record 9.1 million square feet of office space in the first quarter of 2026. This institutional interest provides a strong foundation for continued real estate growth in metropolitan regions. On the residential side, new home values are projected to touch USD 906 billion by 2034.
Pertinently, Anand Kumar, Chairman of RERA NCT of Delhi, urged stakeholders to move toward greater honesty and efficiency. He stressed the need to develop Tier-2 and Tier-3 cities to reduce migration pressure on metros. The sector should aim for higher annual growth rates of 20-25 per cent to meet these targets.
FICCI-KPMG Real Estate Report Highlights
| Parameter | 2025/2026 Data | Future Projections |
| Market Size | USD 650 Billion (2025) | USD 5.8 Trillion (2047) |
| Primary Metric | Indian real estate growth | 20-25% Target Growth Rate |
| AI Adoption | 91% in Corporate RE | End-to-end Transformation |
| Residential Value | Current Expansion | USD 906 Billion (2034) |
| Office Leasing | 9.1 Million Sq Ft (Q1 2026) | Continued Institutional Rise |
| Land Parcels | 360 Million ID’d | 340 Million Docs Verified |
Future Retail and Commercial Projections
Significantly, retail developments are also expanding, with 41 million square feet of new space expected by 2028. The next phase of Indian real estate growth will depend on end-to-end, enterprise-led transformation. End-to-end lifecycle integration is now moving beyond front-end visibility toward planning, execution, and sales. AI-driven valuation models are increasingly integrated into operations to boost investor confidence. These integrated platforms strengthen decision-making for both domestic developers and international investors. In fact. the transition from isolated digitisation to comprehensive transformation marks a new era for the industry. Thus, the shift ensures the sector remains a resilient and vital part of the national economic landscape.
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