Real Estate Industry In India Market Size (2024 - 2029)

The real estate market size in India is poised for significant growth over the forecast period, recovering from the impacts of the COVID-19 pandemic. The residential sector, initially hit hard, has seen a resurgence driven by increased house sales, new project launches, and a rising demand for office and commercial spaces. This growth is supported by the expanding corporate environment and the need for urban and semi-urban accommodation. The sector is a major employment generator and is expected to attract substantial non-resident Indian investment. Additionally, the demand for data centers and residential properties is rising due to urbanization and higher household incomes, positioning India as a leading market for real estate investment.

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Market Size of Real Estate Industry In India

Real Estate Industry in India Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 0.33 Trillion
Market Size (2029) USD 1.04 Trillion
CAGR (2024 - 2029) 25.60 %
Market Concentration Low

Major Players

Real Estate Industry in India Market Major Players

*Disclaimer: Major Players sorted in no particular order

India Real Estate Market Analysis

The Real Estate Industry In India Market size is estimated at USD 0.33 trillion in 2024, and is expected to reach USD 1.04 trillion by 2029, growing at a CAGR of 25.60% during the forecast period (2024-2029).

  • India's real estate market was affected by the COVID-19 pandemic. The residential sector was the worst hit as strict lockdown measures across major cities impacted housing sales as home registrations were suspended and home loan disbursement was slow. However, the sector recovered due to an increase in house sales, new project launches, and increasing demand for new office and commercial spaces, etc.
  • The growth of this sector is well complemented by the growth in the corporate environment and the demand for office space as well as urban and semi-urban accommodation. The construction industry ranks third among the 14 major sectors in terms of direct, indirect, and induced effects in all sectors of the economy.
  • In India, the real estate sector is the second-highest employment generator after agriculture. It is also expected that this sector will incur more non-resident Indian (NRI) investment, both in the short and long term. Bengaluru is expected to be the most favored property investment destination for NRIs, followed by Ahmedabad, Pune, Chennai, Goa, Delhi, and Dehradun. Retail, hospitality, and commercial real estate are also growing significantly, providing the much-needed infrastructure for India's growing needs.
  • According to industry reports, real estate demand for data centers is expected to increase by 15-18 million sq. ft. by 2025. Demand for residential properties has surged due to increased urbanization and rising household income. India is among the top 10 price-appreciating housing markets internationally.

India Real Estate Industry Segmentation

The real estate sector includes various phases of property dealings, including developing, selling, buying, leasing, and management processes in the industrial sector, residential sector, etc.

The report provides a comprehensive background analysis of the market, covering the current market trends, restraints, technological updates, and detailed information on various segments and the competitive landscape of the industry. Additionally, the COVID-19 impact has been incorporated and considered during the study.

The real estate industry in India is segmented by property type (residential, office, retail, hospitality, and industrial) and cities (Mumbai, Delhi, Pune, Chennai, Hyderabad, and Bangalore). The report offers market size and forecasts for all the above segments in value (USD).

By Property Type
Residential
Office
Retail
Hospitality
Industrial
By Key States
Mumbai
Delhi
Pune
Chennai
Hyderabad
Bengaluru
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Real Estate Industry In India Size Summary

The real estate market in India is poised for significant growth, driven by a resurgence in demand across various sectors. The industry, which faced challenges during the COVID-19 pandemic, has rebounded with increased housing sales, new project launches, and a rising demand for office and commercial spaces. The sector's expansion is supported by the growing corporate environment and the need for urban and semi-urban accommodation. As the second-highest employment generator after agriculture, real estate plays a crucial role in the Indian economy. The market is also witnessing a surge in non-resident Indian investments, with cities like Bengaluru, Ahmedabad, and Pune emerging as preferred destinations. The demand for data centers and residential properties is on the rise, fueled by urbanization and increasing household incomes, positioning India among the top international markets for price appreciation in housing.

The Indian real estate sector is characterized by its fragmented nature, with numerous players contributing to a competitive landscape that influences pricing and supply dynamics. The market is witnessing substantial growth in commercial real estate, particularly in office spaces, which are increasingly being leased by sectors beyond information technology, such as BFSI, engineering, and e-commerce. Legislative measures like the Real Estate Regulatory Authority (RERA) and the introduction of Real Estate Investment Trusts (REITs) have bolstered investor confidence, attracting both domestic and international investments. Despite the high demand for affordable housing, the market continues to see a significant number of residential launches, supported by government initiatives like PMAY. Major developers such as DLF, Lodha Group, and Oberoi Realty are key players in this evolving landscape, with ongoing projects like Mahindra Lifespaces' acquisition in Bengaluru and the Dholera Smart City project in Gujarat highlighting the sector's growth potential.

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Real Estate Industry In India Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Current Market Scenario

    2. 1.2 Government Regulations and Initiatives

    3. 1.3 Insights into Size of Real Estate Lending and Loan to Value Trends

    4. 1.4 Insights into Rental Yields in Residential Real Estate Segment

    5. 1.5 Insights into Technological Trends in the Market

    6. 1.6 Insights into Interest Rate Regime for General Economy and Real Estate Lending

    7. 1.7 Insights into Capital Market Penetration and REIT Presence in Residential Real Estate

    8. 1.8 Insights into Real Estate Tech and Startups Active in the Real Estate Segment (Broking, Social Media, Facility Management, and Property Management)

    9. 1.9 Insights into Affordable Housing Support Provided by Government and Public-private Partnerships

    10. 1.10 Supply Chain/Value Chain Analysis

    11. 1.11 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Property Type

      1. 2.1.1 Residential

      2. 2.1.2 Office

      3. 2.1.3 Retail

      4. 2.1.4 Hospitality

      5. 2.1.5 Industrial

    2. 2.2 By Key States

      1. 2.2.1 Mumbai

      2. 2.2.2 Delhi

      3. 2.2.3 Pune

      4. 2.2.4 Chennai

      5. 2.2.5 Hyderabad

      6. 2.2.6 Bengaluru

Real Estate Industry In India Market Size FAQs

The Real Estate Industry In India Market size is expected to reach USD 0.33 trillion in 2024 and grow at a CAGR of 25.60% to reach USD 1.04 trillion by 2029.

In 2024, the Real Estate Industry In India Market size is expected to reach USD 0.33 trillion.

Real Estate Market in India Report Snapshots

Real Estate Market in India Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)