India's Real Estate Sector: A $1 Trillion Journey by 2030
India's real estate sector is experiencing robust growth, driven by government policies and market confidence. This article explores the factors contributing to its rise and the potential for reaching a $1 trillion market size by 2030.
Real EstateGdpInvestmentPolicyInfrastructureReal EstateSep 30, 2025
The real estate sector is moving beyond its traditional role and is now being recognised as an important contributor to India’s Gross Domestic Product (GDP). The cover story in the pull-out examines the reasons for this expansion. It is broadly supported by infrastructure creation, the recent changes in the Goods and Services Tax (GST) regime, and sustained low interest rates.
These factors are collectively contributing to greater affordability and driving demand across housing segments, as well as Grade A office spaces and organised retail centres in the Delhi NCR and national markets. Real estate is on track to become one of the larger contributors to India’s GDP by the end of the current fiscal year (FY25-26), owing to domestic consumption and stable domestic and institutional investment flows.
Some of the elements supporting the current growth are government and regulatory actions detailed in the pull-out, which affect both the supply and demand sides. These include the RBI’s repo rate cut to 5.50%, representing a 50-basis-point reduction, which has eased monetary conditions. This is expected to stimulate retail demand by lowering the cost of credit for homebuyers. Moreover, the rationalisation of GST on key construction materials acts as an incentive.
The special edition also looks into the changing trends in the domain, like a shift from rental to ownership due to improved affordability. This is complemented by rising demand for premium housing and demographic shifts from rural to urban areas.
Some investment hotspots
The special edition also offers insights into areas of investment. These include an analysis of Gurugram, focussing on its role as a corporate and financial hub in the NCR. The report highlights the city’s ability to absorb Grade A commercial office space and its continued appeal to global firms. It identifies the Dwarka Expressway and New Gurugram as residential growth markets and as corridors for commercial and retail development.
The Dwarka Expressway is expected to improve connectivity, positioning these areas as favourable investment zones due to their access to the IGI Airport and Delhi. These corridors are drawing institutional and retail investors seeking long-term value across residential, commercial, and retail asset classes.
Home away from home
For investors seeking portfolio diversification and exposure to the second-home market, a feature on Goa explores how this coastal state has evolved from a holiday destination to a second-home option. It offers insights into investment prospects by geographical area, contrasting the rental yield potential of tourism-linked properties in North Goa with the capital appreciation prospects of properties in South Goa. It also profiles developers, examines villa and fractional ownership projects, and notes emerging investment areas near Goa’s borders that may offer returns.
In summary, the India Real Estate Story 2025 feature by Hindustan Times is a resource for investors and market professionals seeking to understand the current cycle and identify opportunities in Delhi NCR and beyond.
Frequently Asked Questions
What is the current market size of India's real estate sector?
India's real estate sector has expanded from $120 billion in 2017 to $477 billion in 2022, and it is estimated to reach $1 trillion by 2030.
What are the key factors driving the growth of the real estate sector in India?
The key factors driving the growth include infrastructure creation, changes in the GST regime, sustained low interest rates, and government policy measures.
How is the RBI's repo rate cut affecting the real estate market?
The RBI's repo rate cut to 5.50%, representing a 50-basis-point reduction, has eased monetary conditions and is expected to stimulate retail demand by lowering the cost of credit for homebuyers.
What are some investment hotspots in the Delhi NCR region?
Gurugram, with its ability to absorb Grade A commercial office space and its appeal to global firms, is a key investment hotspot. The Dwarka Expressway and New Gurugram are also emerging as residential growth markets and corridors for commercial and retail development.
How has Goa evolved as a second-home market for investors?
Goa has evolved from a holiday destination to a second-home option, offering investment prospects in both North Goa (rental yield potential) and South Goa (capital appreciation prospects).
Related News Articles
Retail Revolution: India's Retail Space Expected to Boom by 50%
The top seven cities in India, including Mumbai, Delhi NCR, Bengaluru, Hyderabad, Pune, Kolkata, and Chennai, are projected to witness a surge in retail space, with Delhi NCR leading the charge.
Insolvency Proceedings Initiated Against Jaiprakash Associates by NCLT
The National Company Law Tribunal (NCLT) has initiated insolvency proceedings against Jaiprakash Associates, a leading real estate developer, following a plea by ICICI Bank.
Whiteland Corp Partners with Marriott International for Luxurious Housing Project in Gurgaon
Real estate developer Whiteland Corporation has signed an agreement with Marriott International to bring Westin Residences to Gurgaon, offering a luxurious housing project with hotel-inspired lifestyle
New LTCG Rules Bring Relief to Homeowners, Boost Real Estate Stocks
The Finance Minister's decision to amend the LTCG rules has brought cheer to homeowners and boosted real estate stocks. Here's what it means for you.
Shaping Urban India: The Evolution of Real Estate Since Independence
India's real estate sector has played a pivotal role in shaping urban development since independence. With the urban population growing from 62 million in 1947 to over 485 million today, the sector has undergone significant transformations.
Mumbai Police Arrests Conman Who Duped Real Estate Developer of ₹4 Crore and 3.5Kg Gold
Worli police apprehended Dhirendra Chandrakant Shukla, a wanted real estate agent, for duping Avighna Group of Rs2 crore and 3.5kg gold by promising a vacant plot in Worli for development.