Indian Real Estate Eyes Rs. 10 Lakh Crore Milestone

MUMBAI:
India’s real estate sector is entering a structurally transformative phase, with infrastructure expansion, demographic shifts, and rising capital market participation expected to define the industry’s next decade of growth. The outlook was highlighted by industry leaders at CREDAI Maharashtra’s 11th edition of MahaCON, the state body’s flagship real estate conclave, held in Mumbai from Feb 9-11.

Speaking at MahaCON on the sector’s trajectory, Boman Irani, Chairman, CREDAI, said Indian real estate has recorded nearly 130% growth over the past decade and is on course to evolve into a Rs. 10 lakh crore industry in the coming years.

“The Indian real estate market is evolving rapidly, and we stand at the cusp of a significant expansion cycle,” Irani said.

He identified senior living and commercial real estate as structurally underpenetrated segments likely to anchor the next phase of growth. India’s senior living market is projected to reach USD 36 billion by 2050, supported by rising longevity and changing family structures, while the commercial office segment is expected to grow into a USD 1.43 trillion market by 2035, reflecting sustained corporate demand and urban economic activity.

Irani added that the sector’s next evolution will depend heavily on data-driven development and artificial intelligence, enabling greater transparency, sharper decision-making, and improved operational efficiency across the real estate lifecycle.

“India needs a data-driven real estate ecosystem that leverages AI to strengthen planning, sales, finance, and customer experience,” he noted.

Highlighting another structural shift, Satish Magar, Past Chairman, CREDAI, said large-scale infrastructure projects are fundamentally altering Maharashtra’s urban development pattern and expanding investment activity beyond traditional metropolitan centres.

“The distance between cities has reduced due to improved transport networks and regional connectivity, opening new doors for investment, development, and employment across Maharashtra,” Magar said.

Improved highways, transit corridors, and regional connectivity are increasingly decentralising demand, making emerging micro-markets attractive for both developers and institutional investors — a transition experts believe could enable more balanced regional growth while easing pressure on saturated urban hubs.

The sector is also witnessing deeper participation from capital markets, signalling growing financial maturity. According to Amit Kumar, Founder, MSMEx & Grobizfund, 269 SME IPOs collectively raised Rs. 12,200 crore in 2025, compared with 246 IPOs worth Rs. 9,500 crore in 2024, highlighting rising investor confidence and the gradual formalisation of funding channels available to developers.

Industry experts indicated that Tier 2 and Tier 3 cities are expected to power the next wave of real estate growth, supported by infrastructure upgrades, redevelopment opportunities, and expanding economic activity. Developers are increasingly adopting AI-led sales strategies, concept-driven planning, and experience-focused developments as competition intensifies and homebuyers become more discerning.

Stronger collaboration between academia and industry is also expected to accelerate innovation, improve construction technologies, and enhance productivity across the value chain.

Industry economist Deepak Karanjikar noted that Maharashtra’s economic trajectory over the next decade will play a decisive role in shaping real estate demand, as policy direction, infrastructure investment, and industrial expansion continue to influence development patterns across the state. He highlighted that aligning macroeconomic strategy with urban planning will be critical to unlocking long-term opportunities for developers while supporting more sustainable and regionally balanced growth.

Taken together, these trends indicate that Indian real estate is transitioning from a historically cyclical sector to one driven increasingly by structural fundamentals. As infrastructure reshapes urban corridors and institutional participation deepens, the industry is expected to remain a critical engine of investment, employment generation, and economic expansion in the decade ahead.

The 11th edition of MahaCON concluded on a forward-looking note, with industry leaders reaffirming their focus on customer trust, ethical conduct, and innovation. The conclave also highlighted the importance of knowledge-sharing, as well as youth and women participation, while showcasing the adoption of technology, data, and AI. MahaCON 2026 has further reinforced CREDAI Maharashtra’s commitment to fostering a more transparent, inclusive, and growth-oriented real estate sector in India.