Real Estate Pune
India's Residential Property Market Soars to New Heights in FY23: A Brickwork Ratings Report
By GeoSquare News Desk · Published 2024-07-29
The Indian residential property market has experienced a remarkable surge in FY23, with home sales reaching a staggering Rs. 3.47 lakh crore ($42 billion), a 48% year-on-year increase and a 36% volume increase, according to a report by Brickwork Ratings. This growth is largely attributed to the strengthening of the domestic economy, high urbanization, and various government initiatives, including the implementation of the Pradhan Mantri Awas Yojana (Urban) – Housing for All Mission.
The Indian real estate sector has witnessed significant expansion over the decades, growing from a market size of $120 billion in 2017 to $477 billion in 2022. The market size is projected to reach $1 trillion by 2030, largely driven by the affordable housing scheme.
Homeowners are increasingly adopting greener residential projects and infrastructure to reduce carbon emissions and promote sustainability. The top-seven cities, including Mumbai, Delhi-NCR, Bengaluru, Hyderabad, Chennai, Kolkata, and Pune, have experienced a strong revival in housing demand, driven by an increased realization of the importance of home ownership post-COVID-19 pandemic.
India has witnessed a significant surge in demand as well as supply of housing units across the top seven cities over the past decade. The combined housing supply in India's top seven residential markets had soared to 29.32 lakh units, while sales had surged to an approximate 28.27 lakh units.
The residential sector has contributed significantly to the country's economy, generating jobs for over 50 million people, 18% of the country's total workforce. 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.
Importantly, 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. India's real estate sector is expected to reach an estimated $1.5 trillion by 2034, contributing 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. The 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.
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Brickwork Ratings is a leading credit rating agency that provides comprehensive ratings and research reports on various sectors, including real estate. Their reports are widely followed by investors, developers, and policymakers.
Brickwork Ratings is a reputed credit rating agency that offers insightful ratings and research reports on various sectors, including real estate. With a strong team of analysts and experts, Brickwork Ratings provides unbiased and accurate ratings that help stakeholders make informed decisions.