India’s real estate sector is projected to expand nearly nine-fold over the next two decades, reaching an estimated value of US$5.8tn by 2047, according to a joint report released by FICCI and KPMG.
The report estimates that the market, currently valued at around US$650bn in 2025, will see rapid growth driven by urbanisation, infrastructure investment, rising incomes and increasing demand for commercial and residential property.
Researchers said the sector is also undergoing a significant technological transformation, with artificial intelligence becoming increasingly central to corporate real estate operations.
According to the study, AI adoption in India’s corporate real estate sector has risen sharply to 91% in 2025, compared with less than 5% in 2023. The report described the pace of adoption as one of the fastest technology shifts seen in the industry in recent years.
Industry leaders are increasingly using AI tools for property valuation, predictive maintenance, customer engagement, smart building management and investment analysis. The report said AI-driven automation is helping companies reduce costs, improve operational efficiency and enhance decision-making.
The findings also highlighted growing investor interest in technology-enabled real estate platforms, particularly in commercial office spaces, logistics parks and smart urban developments.
India’s expanding digital economy and government-backed infrastructure projects are expected to further support long-term growth in the sector. Analysts noted that rising demand from global capability centres, startups and manufacturing companies is contributing to sustained momentum in both commercial and industrial real estate markets.
The report added that sustainability and energy-efficient buildings are likely to become increasingly important as developers seek to align with global environmental standards and changing consumer expectations.
India’s real estate sector is already among the country’s largest contributors to economic activity and employment, and the report said its growing integration with technology could reshape the industry over the coming decades.
