India's Residential Property Market Soars to New Heights in FY23: A Brickwork Ratings Report
India's residential property market has reached unprecedented levels, driven by increased demand and government initiatives. Cities like Pune are leading the charge, with a surge in housing unit completions and sales.
Real EstateResidential PropertyIndiaBrickwork RatingsHousing MarketFy23Real Estate PuneJul 29, 2024
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.
Information
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.
Frequently Asked Questions
What was the value of India's residential property market in FY23?
Rs. 3.47 lakh crore ($42 billion)
What was the year-on-year increase in home sales in FY23?
48%
What is the projected market size of India's real estate sector by 2030?
$1 trillion
What is the estimated contribution of the real estate sector to India's GDP by 2034?
10.5%
How many jobs are generated by the real estate sector in India?
Over 50 million
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