India’s housing prices may climb up to 10% each year: Report

Housing prices in India are likely to rise by 5–10 per cent annually over the next few years, driven by strong demand, according to a joint report by the Confederation of Indian Industry (CII) and property consultant Colliers India.

The report, titled ‘Real Estate @2047: Building India’s Future Growth Corridors’, was released on Thursday at a conference in New Delhi by Harleen Kaur, Deputy Secretary, Ministry of Road Transport and Highways.

The study projects that annual housing sales could rise from the current 3–4 lakh units to around 10 lakh units by 2047.

“Annual sales can potentially double and reach one million housing units by 2047, driven by rising income levels, demographic shifts, and progressive housing policies,” the report said. “Furthermore, driven by rising incomes, urban migration, and premium housing demand, average property prices are projected to grow at 5–10 per cent annually over the next few years,” it added.

Colliers India noted that the rise in housing sales and prices will be supported by improved infrastructure, government incentives for homebuyers, and increasing preference for reputed developers.

The report said that beyond established housing markets, Tier II and Tier III cities, including spiritual destinations, are expected to see sustained growth in housing demand in the coming decades.

It also projected that India’s real estate market size will increase from USD 0.3 trillion in 2025 to between USD 5 trillion and USD 10 trillion by 2047.

“India’s infrastructure expansion is reshaping the real estate landscape, unlocking new growth corridors and transforming Tier II and III cities. As we march towards a multi-trillion-dollar economy, the demand for world-class built structures, integrated logistics hubs and resilient mobility solutions, including transit-oriented development (TOD) systems, will become more prominent,” Kaur said.

She added that real estate and infrastructure are two vital sectors that will reinforce each other. “Expressways and industrial corridors will increasingly enhance connectivity, transforming land usage in catchment areas, accelerating urban development, and creating commercially viable economic hotspots,” she said.

Pradeep Aggarwal, Founder and Chairman of Signature Global India Ltd, said India must continue to enhance technology adoption in real estate and infrastructure to ensure sustainable growth.

Badal Yagnik, Chief Executive Officer and Managing Director of Colliers India, said the ongoing real estate transformation will involve scaling up across asset classes. “In addition to demand traction in core assets such as office, residential, and industrial & warehousing, we anticipate quantum growth in alternative asset classes such as data centres and shared living,” Yagnik said.

(With inputs from agencies)