Credit: GRI InstituteMarket Radar India: Forging a Multi-Trillion Dollar Future
How demographics, infrastructure spending, and new consumer trends are fuelling the sector's unprecedented growth towards 2047
September 16, 2025Real Estate
Written by:Jorge Aguinaga
A new series of reports and government statements this week have brought India's economic horizon into sharp focus, painting a picture of a nation on the cusp of a transformative, decades-long expansion.
At the heart of this vision lies the real estate sector, which has evolved from a largely fragmented and unorganised industry into a strategic pillar of national development. The consensus is clear: the journey to 2047 - the centennial of India's independence - is paved with ambitious construction, rapid urbanisation, and significant institutional investment.
A landmark report from Colliers and CREDAI, "Indian Real Estate: Fostering equity and fueling economic growth," sets a staggering scale for this ambition. It forecasts the Indian real estate market could swell to between USD 5-10 trillion by 2047, escalating its contribution to the nation's GDP from the current 6-8% to a formidable 14-20%.
This projection is underpinned by what the report identifies as five core structural forces: massive urban expansion, infrastructure development, demographic shifts, a profound digital leap, and a growing imperative for sustainability. Fuelling this growth is an urban population expected to swell by 300 million people by 2050 and a demographic "sweet spot," as the median age rises into the peak income and consumption years.
The numbers behind this forecast are monumental: Grade-A office and industrial stock are each projected to surpass 2 billion square feet, and annual housing sales could double to one million units.
India’s long-term vision is in harmony with the government's own macroeconomic goals. Commerce and Industry Minister Piyush Goyal recently stated that India is on a path to become a USD 30 trillion economy by 2047. This confidence is buoyed by strong domestic fundamentals; private consumption’s share of India's nominal GDP reached a two-decade high in FY25, and the country's consumer market is projected to become the world's third-largest by 2027.
While 2047 provides the horizon, a detailed new report from JLL, "Bon Appétit," reveals how this consumer-led growth is already reshaping the retail landscape. The report identifies the Food & Beverage (F&B) sector as a primary driver of real estate demand, with operators leasing nearly 4 million square feet since 2023.
This growth isn’t uniform; fine dining and the pubs and breweries segment are leading the charge, each accounting for a quarter of the total space leased. This boom is forcing a strategic rethink among developers. Malls have dramatically increased F&B space allocation from a pre-COVID average of 10-12% to 16-18% today, while modern business parks now view quality dining as an essential amenity to attract and retain premium corporate tenants.
The influx of capital is accelerating this trend. Over 20 new global F&B brands have entered India since 2023, and institutional investors are actively funding homegrown chains, drawn by a food services industry expected to grow at a compound annual rate of 8.1% through 2028.
Looking ahead, developers are already preparing for this sustained demand, with an estimated 6 million square feet of upcoming shopping mall space to be earmarked for F&B by 2028. This tangible activity provides compelling evidence that the foundational shifts identified by Colliers - from demographics to digitalisation - are firmly underway, cementing real estate's role as a core driver of India's economic ascent.
For full details, please refer to the reports: “Indian real estate: Fostering equity and fueling real estate growth" from Colliers and CREDAI, and "Bon Appétit - The Food and Beverage Playbook for Indian Real Estate" by JLL.
At the heart of this vision lies the real estate sector, which has evolved from a largely fragmented and unorganised industry into a strategic pillar of national development. The consensus is clear: the journey to 2047 - the centennial of India's independence - is paved with ambitious construction, rapid urbanisation, and significant institutional investment.
A landmark report from Colliers and CREDAI, "Indian Real Estate: Fostering equity and fueling economic growth," sets a staggering scale for this ambition. It forecasts the Indian real estate market could swell to between USD 5-10 trillion by 2047, escalating its contribution to the nation's GDP from the current 6-8% to a formidable 14-20%.
This projection is underpinned by what the report identifies as five core structural forces: massive urban expansion, infrastructure development, demographic shifts, a profound digital leap, and a growing imperative for sustainability. Fuelling this growth is an urban population expected to swell by 300 million people by 2050 and a demographic "sweet spot," as the median age rises into the peak income and consumption years.
The numbers behind this forecast are monumental: Grade-A office and industrial stock are each projected to surpass 2 billion square feet, and annual housing sales could double to one million units.
India’s long-term vision is in harmony with the government's own macroeconomic goals. Commerce and Industry Minister Piyush Goyal recently stated that India is on a path to become a USD 30 trillion economy by 2047. This confidence is buoyed by strong domestic fundamentals; private consumption’s share of India's nominal GDP reached a two-decade high in FY25, and the country's consumer market is projected to become the world's third-largest by 2027.
On October 9th, top real estate investors and developers will gather for India GRI 2025, the premier event to shape the future of the sector. (GRI Institute)
While 2047 provides the horizon, a detailed new report from JLL, "Bon Appétit," reveals how this consumer-led growth is already reshaping the retail landscape. The report identifies the Food & Beverage (F&B) sector as a primary driver of real estate demand, with operators leasing nearly 4 million square feet since 2023.
This growth isn’t uniform; fine dining and the pubs and breweries segment are leading the charge, each accounting for a quarter of the total space leased. This boom is forcing a strategic rethink among developers. Malls have dramatically increased F&B space allocation from a pre-COVID average of 10-12% to 16-18% today, while modern business parks now view quality dining as an essential amenity to attract and retain premium corporate tenants.
The influx of capital is accelerating this trend. Over 20 new global F&B brands have entered India since 2023, and institutional investors are actively funding homegrown chains, drawn by a food services industry expected to grow at a compound annual rate of 8.1% through 2028.
Looking ahead, developers are already preparing for this sustained demand, with an estimated 6 million square feet of upcoming shopping mall space to be earmarked for F&B by 2028. This tangible activity provides compelling evidence that the foundational shifts identified by Colliers - from demographics to digitalisation - are firmly underway, cementing real estate's role as a core driver of India's economic ascent.
For full details, please refer to the reports: “Indian real estate: Fostering equity and fueling real estate growth" from Colliers and CREDAI, and "Bon Appétit - The Food and Beverage Playbook for Indian Real Estate" by JLL.