Market Size of India Residential Real Estate Industry
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Study Period | 2019-2028 |
Base Year For Estimation | 2022 |
Market Size (2023) | USD 182.14 Billion |
Market Size (2028) | USD 550.83 Billion |
CAGR (2023 - 2028) | 24.77 % |
Market Concentration | Low |
Major Players![]() *Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Residential Real Estate in India Market Analysis
The India Residential Real Estate Market size is expected to grow from USD 182.14 billion in 2023 to USD 550.83 billion by 2028, at a CAGR of 24.77% during the forecast period (2023-2028).
There is a massive demand for affordable housing in many parts of the country, propelled by rapid urbanization. Apart from it, there is a significant increase in demand for luxury and big housing spaces due to the need for better lifestyles.
- One of India's most powerful economic foundations is real estate. Rapid urbanization, changing consumer behaviour, regulatory reforms, and the pandemic's impact are all driving this pillar's evolution. The real estate industry has begun to recover after the pandemic. The year 2021 was a watershed moment in India's residential real estate sector. The strong momentum in the housing market is expected to continue in 2022-2023, with sales likely to reach pre-pandemic levels.
- Implementing initiatives that generate demand and encourage people to buy real estate propels the market forward. Ready-to-move-in apartments have been in high demand among buyers in the residential category. In these circumstances, however, educating customers better and managing expectations is critical. The trends that have been observed are revolutionary. In India, the real estate industry is undergoing a technological transformation. Throughout the industry, several cutting-edge strategies and solutions are being implemented. The market's growth trajectory has accelerated due to these new developments.
- One of the most well-known developments in home automation exemplifies an excellent combination of technology and real estate. These venues have a huge potential to attract a diverse range of investment opportunities and forward-thinking individuals. Due to long wait times and increasing project failures, under-construction properties gradually lose their allure. As a result, ready-to-move-in homes are gaining popularity. To align with this viewpoint, many builders have adopted the business strategy of building first and selling later. This popular European and American home concept makes inroads into India's real estate market.
- With the requirement that Real Estate Investment Trusts (REITs) have 80% of their underlying assets operational and income-generating, such properties have become a more viable investment option than traditional options. It is a low-risk method of diversifying one's investment portfolio. Even though the pandemic has strained rental cash flow, a strong and upward-trending long-term picture is anticipated. Property ownership is becoming more popular. Although this has aided in the formation of positive consumer sentiment toward residential real estate, the government's and banking industry's support got things going. The convergence of these two elements improved demand and supply metrics. After spending a significant amount of time working indoors, many homeowners have realized the utility of larger homes.
Residential Real Estate in India Industry Segmentation
Residential real estate is an area developed for people to live in. As defined by local zoning ordinances, residential real estate cannot be used for commercial or industrial purposes. A complete background analysis of the India Residential Real Estate Market, including the assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for key segments, and emerging trends in the market segments, market dynamics, and geographical trends, and COVID-19 impact is included in the report.
The Indian residential real estate market is segmented by type (Condominiums, Villas, and Other types). The report offers market size and forecasts in values (USD billion) for all the above segments.
By Type | |
Condominiums | |
Villas | |
Other Types |
India Residential Real Estate Market Size Summary
The Indian Residential Real Estate Market is experiencing robust growth, driven by factors such as rapid urbanization, changing consumer behavior, and regulatory reforms. The sector is seeing a high demand for both affordable housing and luxury spaces, fueled by the growing desire for improved lifestyles. The market is also witnessing a technological transformation with the adoption of innovative strategies and solutions, which are accelerating its growth trajectory. Developments like home automation and the popularity of ready-to-move-in apartments are shaping the market trends. Real Estate Investment Trusts (REITs) are emerging as a viable investment option, contributing to the market's expansion. Despite challenges like inflation and higher interest rates, the real estate market is recovering steadily from the impact of COVID-19. The demand for residential properties is growing due to factors like lifestyle upgrades, low-interest rates, and the increased need for homeownership triggered by the pandemic. The government's push for affordable housing is also driving the market. Technological innovations are being utilized to meet the rising demand for housing faster and more efficiently. However, there is still a significant supply shortage in the affordable housing segment. The Indian Residential Real Estate Market, which is highly fragmented with numerous local, regional, and global players, is predicted to see an increase in the market share of top listed developers due to their robust pipeline of residential project launches.
Explore MoreIndia Residential Real Estate Market Size - Table of Contents
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1. MARKET INSIGHTS AND DYNAMICS
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1.1 Current Market Scenario
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1.2 Residential Real Estate Buying Trends - Socioeconomic and Demographic Insights
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1.3 Government Initiatives and Regulatory Aspects Pertaining to the Residential Real Estate Sector
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1.4 Insights into Size of Real Estate Lending and Loan to Value Trends
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1.5 Insights into Interest Rate Regime for General Economy and Real Estate Lending
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1.6 Insights into Rental Yields in Residential Real Estate Segment
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1.7 Insights into Capital Market Penetration and REIT Presence in Residential Real Estate
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1.8 Insights into Affordable Housing Support Provided by Government and Public-private Partnerships
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1.9 Insights into Real Estate Tech and Startups Active in Real Estate Segment (Broking, Social Media, Facility Management, Property Management)
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1.10 Impact of COVID-19 on the Market
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1.11 Market Dynamics
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1.11.1 Drivers
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1.11.2 Restraints
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1.11.3 Opportunities
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1.12 Porter's Five Forces Analysis
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1.12.1 Bargaining Power of Suppliers
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1.12.2 Bargaining Power of Consumers/Buyers
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1.12.3 Threat of New Entrants
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1.12.4 Threat of Substitute Products
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1.12.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 By Type
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2.1.1 Condominiums
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2.1.2 Villas
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2.1.3 Other Types
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India Residential Real Estate Market Size FAQs
How big is the India Residential Real Estate Market?
The India Residential Real Estate Market size is expected to reach USD 182.14 billion in 2023 and grow at a CAGR of 24.77% to reach USD 550.83 billion by 2028.
What is the current India Residential Real Estate Market size?
In 2023, the India Residential Real Estate Market size is expected to reach USD 182.14 billion.