CREDAI’s New India Summit: Smriti Irani Urges Real Estate Stakeholders to Prioritize Data Centres and GCCs

At the New India Summit organized by the Confederation of Real Estate Developers' Associations of India (CREDAI) in Nashik, Maharashtra, BJP leader Smriti Irani discussed the evolving role of real estate in India. She emphasized that the sector is no longer confined to constructing residential and commercial buildings but is also crucial for developing infrastructure for Data Centres and Global Capacity Centres (GCCs). The shift reflects the changing needs of a growing digital economy and an expanding workforce in global service industries.

Rising Demand for Data Centres and GCCs

Mrs. Irani highlighted the increasing demand for data centres, driven by the surge in digital engagement across industries. She stated that over the next four to five years, approximately 18 million square feet of space will be required to meet data storage and processing needs. The rise of artificial intelligence, cloud computing, and fintech services has accelerated the demand for data centres, making them a critical component of modern infrastructure.

In addition to data centres, GCCs—corporate hubs that provide operational support to multinational corporations—are expanding across India. Currently, the country has around 1,600 GCCs employing between 1.6 and 2 million professionals. These centres handle key business functions, including IT services, research, finance, and customer support. As more global firms set up operations, there will be a growing need for supporting infrastructure such as power grids, housing, healthcare, educational institutions, and commercial facilities.

Smriti Irani noted that many GCCs are expanding into Tier-II and Tier-III cities, necessitating large-scale urban planning initiatives. This expansion will require a coordinated effort between government agencies and private developers to ensure adequate resources are available for businesses and residents.

According to Irani, real estate must adapt to these changes by expanding its focus beyond traditional residential and office spaces. She suggested that real estate should be viewed as a driver of economic growth, supporting industries that contribute to job creation and technology development. She stressed that the sector must align with emerging trends in digital infrastructure, logistics, and urban development.

Urban Growth and Infrastructure Development

CREDAI National President Boman Irani also spoke at the event, emphasizing that by 2050, nearly 50% of India’s population will reside in Tier-II, Tier-III, and Tier-IV cities. He pointed out that this demographic shift requires planned urban expansion to accommodate housing, commercial, and industrial needs.

Irani and other industry leaders at the summit highlighted the environmental challenges associated with rapid urbanization. Construction bans in major metropolitan areas due to pollution concerns have underscored the importance of adopting sustainable building practices. Developers were encouraged to integrate environmentally responsible techniques, including energy-efficient designs and sustainable materials, to reduce environmental impact.

Projected Urban Growth by 2050

Smriti Irani stated that by 2047 or 2050, India may have nearly 100 cities with populations exceeding one million. Identifying these emerging urban areas early will be essential for effective infrastructure development. Policymakers and developers must work together to ensure these regions receive adequate investments in roads, public transport, water supply, and energy distribution.

She emphasized the importance of focusing on “rurban” regions—areas that are currently rural but are expected to urbanize due to industrial and commercial development. Proper planning in these regions can help prevent unstructured growth and infrastructure deficits in the future.

Insights from Emerging Cities Report

During the summit, CREDAI and real estate consultancy firm Liases Foras released a report on the state of real estate in 60 emerging cities across India. The findings indicated that in 2024, 44% of the 3,294 acres of land acquired by real estate developers were located in Tier-II and Tier-III cities.

The report also showed that housing sales in these cities reached 681,138 units in 2024, marking a 23% year-on-year increase. The primary developers' market recorded a total sales value of ₹7.5 trillion, reflecting a 43% year-on-year growth. The demand for housing, commercial properties, and business infrastructure is expanding as more people migrate to these cities in search of employment and better living standards. 

The discussions at the summit underscored the transformation of the real estate sector in India. The focus is shifting from traditional housing and commercial projects to a broader approach that includes data centres, corporate hubs, and digital infrastructure. As urbanization accelerates, developers are being encouraged to align their strategies with emerging economic needs, urban planning policies, and sustainable practices.

The industry leaders at the summit concluded that collaboration between developers, policymakers, and technology firms will be essential in shaping the future of India’s urban landscape. The expansion of data centres, GCCs, and digital infrastructure presents significant opportunities for real estate developers to contribute to India’s economic growth and modernization.

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