India’s real estate sector could require nearly ₹50 trillion in funding by 2036 as residential and commercial development continues to expand, according to Brickwork Ratings. The agency has also maintained a stable credit outlook for the sector through FY27.
The real estate market is projected to reach around $1 trillion by 2030, supported by demand for premium homes, quality office spaces and growing institutional investment. Residential development is expected to account for the largest portion of the long-term funding requirement.
Brickwork Ratings expects sector revenue growth to slow sharply to 0.2% in FY26 from 15.8% in FY25 before recovering to 5.5% in FY27. Residential sales across major cities have already increased by 31% year-on-year, while luxury home prices rose by 10–12% in FY25.
Leading developers continue to maintain relatively strong financial positions, supported by lower debt levels, pre-sales collections, private equity funding and REIT listings. Operating margins are also expected to improve from 30.1% in FY25 to about 33.3% by FY27.
Commercial real estate remains an important investment segment. Office assets attracted more than 40% of institutional inflows during the first half of 2026, receiving around $1.9 billion.
However, unsold housing inventory and future refinancing requirements could put pressure on developer cash flows. Despite these risks, continued demand and institutional participation are expected to support India’s long-term real estate growth.
