India's Residential Property Market Soars to New Heights in FY23
According to a recent report by Brickwork Ratings, India's residential property market reached an all-time high in FY23, with home sales reaching Rs. 3.47 lakh crore ($42 billion), a 48% year-on-year increase and a 36% volume increase.
Residential Property MarketReal EstateIndiaBrickwork RatingsReal Estate NewsJul 29, 2024
The report highlights that the residential sector has experienced a strong revival in housing demand across the top-seven cities, including Mumbai, Delhi-NCR, Bengaluru, Hyderabad, Chennai, Kolkata, and Pune. This is attributed to an increased realization of the importance of home ownership, post-COVID-19 pandemic.
India's 7 major cities have witnessed an annual 8% growth in the sector, with the completion of housing units in 2023 reaching 4.35 lakh units. The residential and commercial real estate sector is the second-largest employment provider, after agriculture, generating jobs for over 50 million people, which is 18% of the country's total workforce.
The report also notes that the Indian real estate employment grew to 7.1 crore in 2023 from 4 crore in 2013, driven by growth in the housing segment supported by several policy reforms by the government. Furthermore, there was a substantial drop in unsold housing inventory during the 2021-2023 period, with Delhi NCR leading with a 19% decline, followed by Chennai and Pune.
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 marks a threefold increase from the sector's market size of approximately $482 billion in 2023, contributing 7.3% to the total economic output.
A surge in demand for new homes is expected in urban areas, which will rise to 78 million between 2024 and 2034, spanning across various income brackets, from affordable to luxury housing segments.
Information
Brickwork Ratings is a credit rating agency that provides ratings and research reports on various sectors, including real estate.
Brickwork Ratings is a leading credit rating agency that provides independent and unbiased ratings and research reports on various sectors, including real estate. The agency is known for its in-depth analysis and expert opinions on the Indian real estate market.
Frequently Asked Questions
What is the current size of India's residential property market?
The current size of India's residential property market is Rs. 3.47 lakh crore ($42 billion), which is a 48% year-on-year increase and a 36% volume increase.
What is the projected market size of India's real estate sector by 2030?
The projected market size of India's real estate sector by 2030 is $1 trillion, largely driven by the affordable housing scheme.
What is the growth rate of India's residential real estate sector in the top-seven cities?
The growth rate of India's residential real estate sector in the top-seven cities is 8% annually.
What is the employment generation capacity of the Indian real estate sector?
The Indian real estate sector is the second-largest employment provider, after agriculture, generating jobs for over 50 million people, which is 18% of the country's total workforce.
What is the expected contribution of the Indian real estate sector to the country's GDP by 2034?
The Indian real estate sector is expected to contribute 10.5% to the country's GDP by 2034, a threefold increase from its current contribution of 7.3%.
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