How to invest in real estate in 2025
financeIndia Residential Real Estate Market Analysis
The India Residential Real Estate Market size is estimated at USD 227.26 billion in 2024, and is expected to reach USD 687.27 billion by 2029, growing at a CAGR of 24.77% during the forecast period (2024-2029).
- There is a massive demand for affordable housing in many parts of the country, pushed by rapid socially. There is also a significant increase in demand for luxury and big housing spaces due to the need for better lifestyles.
- One of India’s most powerful economic foundations is real estate at right now . Rapid social changing consumer behavior, controlling, and the pandemic’s impact drive this pillar’s evolution. The real estate industry has started to recover after the pandemic. The year 2021 marked a significant turning point in India’s residential real estate market. It was anticipated that the strong growth in the housing market would continue throughout 2022-2023, with sales projected to return to pre-pandemic levels.
- Implementing initiatives that generate demand and encourage people to buy real estate force the market forward. Ready-to-move-in apartments have been in high demand among buyers in the residential category. In these circumstances, however, educating customers better and managing expectations is critical. The trends that have been observed are revolutionary. In India, the real estate industry is experience a technological transformation. Throughout the industry, several advanced strategies and solutions are being implemented. The market’s growth due to these new developments.
- One of the most well-known developments in home automation represented an excellent combination of technology and real estate. These platforms have a huge potential to attract diverse investment opportunities and forward-thinking individuals. As a result, ready-to-move-in homes are gaining popularity. To align with this viewpoint, many builders have adopted the business strategy of building first and selling later. This popular European and American home concept makes inroads into India’s real estate market.
- With the requirement that Real Estate Investment Trusts (REITs) have 80% of their underlying assets operational and income-generating, such properties have become a more viable investment option than traditional options. It is a low-risk method of diversifying one’s investment portfolio.
India Residential Real Estate Market Trends
Increasing Demand for Big Residential Spaces is Driving the Market
- Even continue inflation and rising interest rates, the real estate market has gradually recovered from the COVID-19 lockdowns. A recent report by industry experts indicates that sales of residential properties in India’s major cities increased by 24% in the July-September quarter of 2022 compared to the same period in 2021. According to the report, total sales in the third quarter of 2022 were 1,08,817 units, up from 87,747 units in the same quarter of 2021. This report includes Bengaluru, Chennai, Hyderabad, Kolkata, Thane, Mumbai, Navi Mumbai, Pune, and Delhi-NCR as Tier I cities.
- The need for a lifestyle upgrade among homebuyers, low interest rates, comparatively low prices, and the pandemic’s renewed need for home ownership have been the primary drivers of sales growth. Developers strategically responded to the demand strength and shift in felling by launching 160,806 units . Mumbai’s 44,200 home unit sales volume accounted for 28% of total sales among the top eight markets. Regarding annual percentage growth, home sales in the NCR increased 154% yearly to 29,101 units. NCR had the second-highest share of sales among the country’s top eight real estate markets.
- Low interest rates, excellent affordability levels, strong wage growth, and a decreasing pandemic risk have made it an excellent time for people looking to buy homes. This has led to a renewed demand for better housing. While developers are still facing financial challenges, the stable interest from homebuyers should help them navigate through rising costs for materials like cement and steel.
Central and State Governments Pushing Toward Affordable Housing is Driving the Market
- The Indian real estate market is expected to reach USD 1 trillion by 2030, with affordable housing playing a key role in this growth. With a population growing at a rate of 2.1% per year on average and the low purchasing power of a significant portion of our population, meeting the 40 million urban housing demands once seemed like a distant dream. However, things have changed in the last few years, with the government making several important announcements (some examples) to promote affordable housing. It has emerged as one of the most dynamic segments of the Indian real estate market.
- The technology used to build houses at a faster pace was innovative under the Pradhan Mantri Awas Yojana-Urban (PMAY-U), which was launched to address urban housing shortages, including slum dwellers, by ensuring a pucca house to eligible urban households, particularly the Light House projects in six states as part of the Global Housing Technology Challenge – India (GHTC -India) initiative. The initiative ushered in a new era in Indian construction technology, impeding the Make in India initiative. LHPs will pave the way for a new ecosystem in which globally proven technologies will be used for cost-effective, environmentally friendly, and faster construction. The benefits of these LHPs are numerous, primarily durability, climate resilience, and affordability.
- However, this segment still has a significant supply shortage, with more people looking to buy in urban areas emphasizing high-value properties. While only a few financiers were willing to finance customers looking for affordable housing a few years ago, most of the industry’s big names are now entering affordable housing to make it a viable business model. They are entering the affordable housing sector to address the market’s current demand-supply imbalance. Many such projects have emerged in Tier II and III cities, fueling growth in those towns and cities.
India Residential Real Estate Industry Overview
The Indian residential real estate market is highly fragmented, with many local and regional players and a few global players. Some major players are Godrej Properties, Prestige Estate, DLF, Phoenix Mills, L&T Realty Ltd, and Omaxe Ltd. The top listed developers’ share of the Indian residential market is predicted to rise to 29% in FY24 from 25% in FY21, owing to a robust pipeline of residential project launches. Large firms have financial resources to their advantage, whereas small businesses can compete effectively by building expertise in local markets.
India Residential Real Estate Market Leaders
- Godrej Properties
- Prestige Estate
- DLF
- Phoenix Mills
- L&T Realty Ltd.
*Disclaimer: Major Players sorted in no particular order
India Residential Real Estate Market News
- December 2023: Ashwin Sheth Group planned to expand its residential and commercial portfolio in the MMR region.
- November 2023: Tata Realty and Infrastructure, a wholly-owned subsidiary of Tata Sons, planned to grow its business with over 50 projects in major cities in India, Sri Lanka, and the Maldives. The projects have a development potential of more than 51 million square feet.
India Residential Real Estate Industry Segmentation
Residential real estate is an area developed for people to live in. As local zoning ordinances define, residential real estate cannot be used for commercial or industrial purposes. A complete background analysis of the Indian residential real estate market, including the assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for key segments, and emerging trends in the market segments, market dynamics, and geographical trends, is included in the report.
The Indian residential real estate market is segmented by type (condominiums and apartments, villas, and landed houses). The report offers market size and forecasts in values (USD) for all the above segments.
| By Type | |
| Condominiums and Apartments | |
| Villas and Landed House |
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Residential Real Estate in India Market Research FAQs
How big is the India Residential Real Estate Market?
The India Residential Real Estate Market size is expected to reach USD 227.26 billion in 2024 and grow at a CAGR of 24.77% to reach USD 687.27 billion by 2029.
What is the current India Residential Real Estate Market size?
In 2024, the India Residential Real Estate Market size is expected to reach USD 227.26 billion.
Who are the key players in India Residential Real Estate Market?
Godrej Properties, Prestige Estate, DLF, Phoenix Mills and L&T Realty Ltd. are the major companies operating in the India Residential Real Estate Market.
What years does this India Residential Real Estate Market cover, and what was the market size in 2024?
In 2024, the India Residential Real Estate Market size was estimated at USD /$227.26 billion. The report covers the India Residential Real Estate Market historical market size for years: 2020, 2021, 2022 and 2024. The report also forecasts the India Residential Real Estate Market size for years: , 2025, 2026, 2027, 2028 and is expected to grow to US/$687.27 billion by 2029.
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Residential Real Estate in India Industry Report
Statistics for the 2024 Residential Real Estate in India market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Residential Real Estate in India analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.