India's Booming Residential Property Market: A New Era of Growth
India's residential property market has reached an all-time high, with home sales reaching Rs. 3.47 lakh crore in FY23, driven by government initiatives, urbanization, and a strengthening economy.
Real EstateProperty MarketIndiaAffordable HousingUrbanizationReal Estate NewsJul 29, 2024
The Indian real estate sector has grown from a market size of $120 billion in 2017 to $477 billion in 2022 and is expected to reach $1 trillion by 2030, largely led by the affordable housing scheme. The Central Government's comprehensive Mission “Pradhan Mantri Awas Yojana (Urban) – Housing for All Mission” has been a key driver of this growth.
Factors such as strengthening of the domestic economy, high urbanization, and various government initiatives have driven the growth in the residential housing market in India. Additionally, home owners are increasingly adopting greener residential projects and infrastructure to reduce carbon emissions and promote sustainability.
The residential sector has experienced a strong revival in housing demand across the top-seven cities - Mumbai, Delhi-NCR, Bengaluru, Hyderabad, Chennai, Kolkata, and Pune, owing to an increased realization of importance of home ownership, post-covid-19 pandemic.
According to Brickwork Ratings, India has witnessed a significant surge in demand as well as supply of housing units across the top seven cities of India over the past decade. The research stated that between 2014 and 2023, the combined housing supply in India’s top seven residential markets (cities) had soared to 29.32 lakh units while the sales had surged to an approximate 28.27 lakh unit.
The Indian real estate sector is expected to reach an estimated $1.5 trillion by 2034 and is expected to contribute 10.5% to the country’s GDP over the next 10 years. This growth is expected to be primarily driven by the residential market with an expected value of $906 billion, followed by the office sector contributing $125 billion.
Information
Brickwork Ratings is a leading credit rating agency in India that provides ratings and research reports on various sectors, including real estate.
Anarock is a real estate consultant firm that provides research and advisory services to the real estate industry. NAREDCO is a realtors' body that represents the interests of the real estate sector in India. CREDAI is a realtors' body that represents the interests of the real estate sector in India.
Frequently Asked Questions
What was the value of home sales in India's residential property market in FY23?
Rs. 3.47 lakh crore ($42 billion)
What is the projected market size of India's real estate sector by 2030?
$1 trillion
What is the main driver of growth in India's real estate sector?
Affordable housing scheme
Which cities have witnessed a strong revival in housing demand in India?
Mumbai, Delhi-NCR, Bengaluru, Hyderabad, Chennai, Kolkata, and Pune
What is the expected contribution of India's real estate sector to the country's GDP by 2034?
10.5%
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