News: FICCI-KPMG: Indian Realty to Hit $5.8 Trillion by 2047-07-05-2026
India’s real estate sector, now valued at $650 billion, is going through a major digital shift as developers turn to data-driven tools in the face of cost pressures, tighter compliance and better-informed buyers, a joint report by FICCI and KPMG has said.
Titled Reimagining India’s Real Estate Landscape: The Role of Technology in Value Chain Transformation, the report was released at the 19th FICCI Real Estate Summit in the capital on May 7. It said a sector long marked by fragmented workflows, paper-based processes and limited visibility is now deploying artificial intelligence (AI), digital twins, blockchain, drones and IoT-enabled systems across the value chain, from site selection and design to construction, sales and asset management.
Citing data from other sources, the report said the market is projected to grow nearly ninefold to $5.8 trillion by 2047 from $650 billion in 2025. AI usage in corporate real estate rose to 91% in 2025 from less than 5% in 2023. It projected the value of new homes at $906 billion by 2034 and said 41 million square feet of new retail developments should be operational by 2028.
The drivers of adoption it listed are cost efficiency, higher regulatory and compliance expectations, rising institutional capital and more engaged homebuyers. The market, it noted, is moving from fragmented private ownership to institutionally managed, transparent platforms, and the next phase of growth will depend on end-to-end, enterprise-led transformation.
On government reforms, the report said over 360 million land parcels across 29 states and union territories have geo-referenced unique identifiers, and nearly 89 per cent of sub-registrar offices are integrated with revenue systems for real-time updates. Blockchain-enabled property management systems have verified more than 340 million property documents.
At the summit, Anand Kumar, Chairman, Real Estate Regulatory Authority (RERA), NCT of Delhi, urged stakeholders to be honest and look beyond individual interests. He called for developing Tier-2 and Tier-3 cities to ease migration pressure on metros and said the sector should target growth of 20-25 per cent.
Neeraj Bansal, Partner and Head - India Global, KPMG in India, said the sector is moving towards integrated, technology-led platforms. Raj Menda, chairman, Ficci Committee on Urban Development and Real Estate and Chairman, Supervisory Board, RMZ, said sustaining India’s position demands digital discipline across the project lifecycle. Vipul Roongta, MD and CEO of HDFC Capital Advisors Ltd, said two-thirds of the market is residential and demand will grow with a young, aspirational population.
On the sidelines, Hitesh Singla, co-founder and CIO, Square Yards, said buyers now expect a seamless journey across discovery, financing, advisory, documentation and post-sales support, and that proptech is bringing transparency, speed and accountability.
