India's Real Estate Sector: A Path to $1 Trillion with Policy Support
The Indian real estate market is witnessing significant growth, driven by government policies and changing consumer preferences. The sector's market size is expected to reach $1 trillion by 2030.
Real EstateGdp GrowthGovernment PoliciesInvestment OpportunitiesUrbanizationReal Estate NewsSep 30, 2025
The real estate sector is moving beyond its traditional role and is now recognized as a significant 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 development, 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 various segments, including housing, Grade A office spaces, and organized retail centers 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), thanks 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 Reserve Bank of India’s (RBI) 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 rationalization of GST on key construction materials acts as an incentive.
The special edition also looks into the changing trends in the domain, such as 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 are also highlighted in the special edition. These include an analysis of Gurugram, focusing 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 favorable investment zones due to their access to the Indira Gandhi International (IGI) Airport and Delhi. These corridors are drawing institutional and retail investors seeking long-term value across residential, commercial, and retail asset classes.
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 valuable resource for investors and market professionals seeking to understand the current cycle and identify opportunities in Delhi NCR and beyond.
Frequently Asked Questions
What factors are driving the growth of the Indian real estate sector?
The growth of the Indian real estate sector is driven by infrastructure development, changes in the Goods and Services Tax (GST) regime, and sustained low interest rates. These factors contribute to greater affordability and increased demand across various segments.
How does the RBI's repo rate cut impact the real estate market?
The RBI's repo rate cut to 5.50% has eased monetary conditions, lowering the cost of credit for homebuyers. This is expected to stimulate retail demand and make home ownership more affordable.
What are some investment hotspots in the Delhi NCR region?
Some investment hotspots in the Delhi NCR region include Gurugram, the Dwarka Expressway, and New Gurugram. These areas are favored for their access to the Indira Gandhi International (IGI) Airport and Delhi, making them attractive for residential, commercial, and retail development.
How has Goa evolved as a real estate market?
Goa has evolved from a holiday destination to a second-home option, offering investment prospects in both tourism-linked properties and capital appreciation. The state is attracting investors looking for portfolio diversification and long-term value.
What is the expected market size of the Indian real estate sector by 2030?
The Indian real estate sector is expected to reach a market size of $1 trillion by 2030, driven by government support, infrastructure development, and changing consumer preferences.
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