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This week's edition takes a look at India’s growing real estate market, latest GDP numbers, and more must-know news.

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India’s real estate market accounts for 7.3% of its GDP as of 2024, and the sector is positioned to capture a much larger share as the country continues its economic expansion. Driven by continued growth of its population (expected to peak by 2050), urbanisation (expected to reach 40% by 2036), public initiatives and economic development, domestic and international players continue investing in the country.

According to a report by National Real Estate Development Council (NAREDCO) and Knight Frank, the real estate sector (construction in commercial and residential real estate, real estate services) is expected to account for 15.5% of India’s GDP by 2047, a significant USD 5.8 Trillion.

To put this in perspective: India's real estate sector alone would represent an economy larger than most developed nations including Germany (GDP in 2025: USD 4.7 Trillion) or France (GDP in 2025: USD 3.2 Trillion).

The sector’s expected growth represents a CAGR of around 14.4%. This doesn’t seem unrealistic given the expected growth of the commercial real estate market alone at a CAGR of 19.81% from 2025 to 2033, as reported by the market research company IMARC Group:

India has attracted some of the world's most sophisticated real estate investors, demonstrating the market's maturity and potential. The country has highly successful homegrown real estate developers such as Embassy, DLF, Bagmane, Prestige, RMZ, Oberoi or Brigade Group, while also drawing significant foreign capital.

Some of the world’s largest asset managers and real estate investors such as Brookfield Asset Management, Blackstone or CapitaLand have been active in India for over 15, 20 and 30 years respectively, are highly successful and are increasing their exposure:

The opportunities for European businesses are vast, particularly if you take the total construction market including infrastructure into account. India’s construction market already is the third largest globally and contributes USD 1.21 Trillion to India’s GDP, expected to reach USD 2.13 Trillion by 2030.

As India's real estate sector scales to unprecedented levels, European companies with specialised expertise in construction technology, sustainable building practices, and large-scale project delivery are well positioned to capitalise on this growth.

Here are some European businesses that are already present in India:

While this represents only a sample of companies active in India’s real estate and construction sector, it demonstrates the market attractiveness for European companies. And I think that the substantial potential will lead to many more entering the market.

Sources: Times Property, ET Now, IMARC Group, Forbes India, CNBC TV18, CapitaLand, NMSC

India remains the world's fastest-growing major economy and is positioned to overtake Japan as the fourth-largest economy globally this year. Recent quarterly data demonstrates the country's economic resilience despite global headwinds.

India's latest GDP figures show accelerating momentum, as reported by BBC:

While this represents the lowest annual growth since COVID-19, the strong final quarter performance indicates renewed economic momentum. This growth trajectory stands out sharply against global trends, with the International Monetary Fund revising worldwide growth expectations down to just 2.8% for 2025 amid ongoing tariff uncertainties.

However, India faces two primary challenges for sustained economic expansion: heavy dependency on government infrastructure investments and subdued urban consumption. The government is actively addressing both issues through targeted policy measures.

Recent initiatives include strategic tax cuts designed to increase disposable income and stimulate domestic demand. Additionally, the government is pursuing an expanded Free Trade Agreement (FTA) strategy this year, aimed at attracting increased foreign investment and diversifying growth drivers beyond public spending. The FTA with the UK was recently agreed, agreements with the EU and USA are expected to follow.

This economic resilience translates into tangible social progress. Latest data by the World Bank reveals dramatic progress in poverty reduction over the past decade. The percentage of Indians living in extreme poverty, measured at living below USD 3.0 per day, plummeted from 27.1% in 2011/2012 to 5.3% in 2022/2023.

India’s combination of strong fundamental growth, proactive policy responses, and substantial social progress positions the economy well for continued expansion. Execution will be key, but I expect India to keep its momentum and become an important partner for European companies.

Sources: BBC, Statista, The Economic Times

Hamburg, Germany, is inviting for this year’s India Week Hamburg 2025.

The eleventh issue will take place from June 23rd to June 29th, and provide a comprehensive program to celebrate Hamburg’s partnership with India.

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