ANAROCK Projects Massive Capital Demand for India’s Real Estate Growth Story

India’s real estate sector could require nearly ₹50 lakh crore in capital over the next decade as the industry moves toward becoming a trillion-dollar market, according to a new report by ANAROCK Capital. The report projects that the sector could reach $1 trillion by 2030 and $5–7 trillion by 2047.

The study, titled Powering the Next Decade: India’s Real Estate Finance Transformation Story, highlights how the country’s real estate financing ecosystem has changed over the years. What was once heavily dependent on NBFCs is now increasingly backed by institutional funding channels, including banks, REITs, AIFs, private credit firms, and government-supported initiatives.

According to the report, sectors such as data centres, logistics parks, industrial real estate, and GCC-led office developments are expected to attract a large share of future investments. Growing urbanisation, rising incomes, and expanding infrastructure projects are also contributing to stronger demand across both residential and commercial property segments.

However, the report also points out a widening imbalance within the market. While premium housing and large metro projects continue to attract institutional money, affordable housing remains significantly underfunded. Homes priced below ₹40 lakh now account for only a small portion of new launches compared to previous years, even as demand for affordable homes continues to rise.

ANAROCK estimates that India may need nearly 25 million additional affordable homes by 2030. At the same time, over 4.5 lakh affordable and mid-income homes across more than 1,500 stalled projects are still awaiting financial support worth roughly ₹55,000 crore.

Industry experts quoted in the report argue that the challenge is no longer a lack of capital, but how efficiently that capital is distributed. Smaller developers and projects in Tier-II and Tier-III cities often struggle to access formal financing despite increasing demand in emerging urban regions.

Discussions across real estate communities also reflect growing concerns about affordability and long-term sustainability, especially as property prices continue to rise in major cities. Many observers believe future growth will increasingly depend on infrastructure-led expansion in smaller cities and balanced regional development rather than only metro-centric growth.