New Launch - India Real Estate Report 2026.
India's real estate sector will need significant policy reforms, stronger regulatory coordination and a renewed focus on affordable housing to achieve its projected valuation of $5.8 trillion by 2047, according to a joint report by NAREDCO and KPMG in India. The report highlights that the housing and urban development sector has the potential to become one of the country's largest economic growth engines, provided structural challenges are effectively addressed.
The report emphasises that affordable housing for Economically Weaker Sections (EWS) and Low-Income Groups (LIG) remains one of the most important priorities for the sector. Rising land prices, lengthy approval timelines, fragmented regulations and limited access to financing continue to create barriers to the development of affordable housing projects across the country.
Need For Better Coordination Between RERA And IBC
Alignment between RERA and the Insolvency and Bankruptcy Code (IBC) has emerged as another key recommendation in the report. Experts believe that overlapping regulations and differing treatment of homebuyers during insolvency proceedings often create uncertainty and delay project resolutions.
Greater coordination between the two frameworks could improve transparency, strengthen consumer confidence and provide more effective mechanisms for addressing stressed projects. Better regulatory alignment would also help developers, financial institutions and homebuyers navigate complex project situations more efficiently.
Affordable Housing And Rental Reforms In Focus
Affordable housing and rental housing reforms are considered essential to supporting India's rapid urbanisation. As millions of people continue to move to urban centres in search of employment opportunities, the demand for quality and affordable housing is expected to rise substantially over the coming decades.
The report suggests that expanding affordable housing initiatives and creating a more robust rental housing ecosystem can help address housing shortages and improve access to formal housing for a larger segment of the population. Policy support and regulatory simplification are expected to play an important role in achieving these objectives.
Real Estate's Expanding Economic Role
The Indian real estate market currently contributes significantly to employment generation, capital formation and urban development. Industry estimates suggest that the sector could expand nearly ninefold from its present size and become one of the country's most important contributors to economic growth by 2047.
Technology adoption, infrastructure development, institutional investments and increasing urbanisation are expected to support this long-term growth trajectory. However, achieving the sector's ambitious targets will require policy continuity, regulatory efficiency and a strong focus on inclusive housing development.
Key Highlights
- India's real estate sector is projected to reach $5.8 trillion by 2047.
- Alignment between RERA and the Insolvency and Bankruptcy Code (IBC) is considered critical for regulatory efficiency.
- Affordable housing and rental housing reforms remain major priorities for the sector.
- The Indian real estate market is expected to play a larger role in employment generation and urban development.
- Policy reforms and better regulatory coordination are viewed as essential for long-term sustainable growth.
The report underscores that India's real estate sector is entering a transformative phase. Achieving a $5.8 trillion market by 2047 will depend not only on rising demand and urbanisation but also on creating an efficient, transparent and inclusive policy framework that supports both developers and homebuyers.
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