India's housing market to see 5-10% annual price rise, says report
- IBEF
- November 7, 2025
Housing prices in India are expected to rise by 5-10% annually over the next few years, supported by strong demand driven by a growing working-age population, urbanisation, and rising incomes, according to a report by the Confederation of Indian Industry (CII) and Colliers. Residential demand is projected to reach around 5,00,000 units annually by 2030 and could double to one million units by 2047. This growth will be supported by favourable demographics, increasing household incomes, and supportive housing policies. Affordable housing is expected to see steady demand as the median age aligns with homeownership trends. At the same time, the ageing population is likely to boost the need for senior living facilities. Luxury housing is also set to grow, driven by a rising number of high-net-worth individuals and greater interest from non-resident Indians investing in Indian real estate.
Improved infrastructure, government incentives, and increased trust in reputable developers will reinforce long-term growth in real estate. Tier-II and tier-III cities, including new spiritual hubs, are emerging as attractive housing destinations due to urbanisation and infrastructure expansion. Redevelopment projects in cities like Mumbai, Bengaluru, and Delhi-NCR, supported by progressive zoning policies and transferable development rights, will help bridge demand-supply gaps and modernise urban landscapes. The report projects that India’s real estate market could grow from the current Rs. 26,59,800 crore (US$ 300 billion) to Rs. 8,86,60,000 crore (US$ 10 trillion) by 2047, with significant potential not only in residential and commercial real estate but also in alternative asset classes such as data centres, senior living, logistics parks, and commercial hubs.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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