Real Estate Market Size in India 2024- A Complete Overview of the Growing Sector
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The Indian real estate market is experiencing rapid growth thanks to buyers’ increasing buying capability, the pumping of more advanced technologies, and FDI. Moreover, urbanisation and strong demand for residential and commercial real estate push the market size funnel. The real estate market in India in 2024 has shown strong resilience in recent years despite the liquidity crunch and regulatory reforms. However, a gradual recovery is fueled by favourable government policies, increased digital adoption, and other aspects.
This article provides insight into the market size of the Indian real estate market and its prospects.
Real Estate Market in India 2024- The Growth Prospects
India’s real estate industry has long been one of the leading forces behind economic expansion, substantially contributing to the nation’s GDP. According to an expert, the Indian real estate market is projected to grow to $1 trillion by 2030 and contribute 15% of the country’s GDP by 2025. Since the projection arrow of the real estate market in India in 2024 is showing upward traction, this growth will further the entry of new real estate developers.
Besides changing government regulations and increasing demand, another reason for the growing Indian real estate market is the interest among NRIs.
NRIs looking for real estate investment in India find projects catering to their demand. About 10% of all market investments as of the 2019–2020 non-resident individuals (NRIs) made a fiscal year. By the end of 2025, this percentage is expected to have increased to 20% from its current level of 15%. This demonstrates the market’s widespread appeal and the NRI community’s confidence. Major top-tier cities, including Noida, Mumbai, Bangalore, and others, continue attracting NRI for investment purposes.
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Performance of Residential and Commercial #RealEstateMarket
The Indian residential real estate market is booming. The sector saw a record-breaking year in FY23, with home sales hitting Rs. 3.47 lakh crore (US$42 billion). Sales volume increased dramatically, up 36% to 379,095 units sold. Completing over 558,000 residential properties indicates robust demand in the mid-income, premium, and luxury segments.
Similarly, commercial real estate has experienced significant growth, with around 41 million square feet of retail complexes anticipated to open in the top seven cities between 2024 and 2028. These projects are in different phases, from planning to building. A noteworthy milestone was also reached in the commercial real estate sector, with gross leasing in the top seven markets surpassing 60 million square feet to 62.98 million square feet, a 26.4% increase from the previous year.
According to the report Building Viksit Bharat—The Transformative Role of the Real Estate Sector in India by CREDAI, the real estate market in India will reach $1.3 trillion by 2034, compared to the current size of $30 billion. The report further stated an increase of 11 percent of the average home area, and there will be around seven crore units of housing demand by 2030.
Sectoral Contribution to Indian #RealEstateMarket Growth
The commercial real estate industry is dominating the market in different ways. One such way is leasing property. IT companies led leasing activity with a 22% market share in the first quarter of 2024. Businesses in the engineering and manufacturing (E&M) and banking, financial services, and insurance (BFSI) sectors made up 13% of India’s total real estate market in 2024. Operators of flexible spaces witnessed a 48% increase, highlighting their increasing significance in the industry.
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Data center demand is anticipated to soar, with real estate needs likely to rise by 15–18 million square feet by 2025. The gross leasing volume in the top seven cities in 2023 was 62.98 million square feet, while office absorption was 41.97 million square feet.
Few Vital Stats about the Market Size of the Indian #RealEstateMarket
- In 2023, there was a rise in the demand for residential properties under mid-income, premium, and luxury segments in the top 8 cities of India. This is despite high mortgage rates and real estate prices.
- With about 41 million square feet of retail developments expected to open in the top 7 cities between 2024 and 2028—projects ranging from planning to construction—India’s physical retail market is expected to grow significantly.
- The gross leasing volume in the top seven cities in 2023 was 62.98 million square feet, while office absorption was 41.97 million square feet.
- In the first quarter of 2023 (January-March), the top 7 Indian cities witnessed a 41% rise in new real estate launches, up from 26% during the same period four years prior.
Future of Real Estate India- What Drives the Sector?
The future of real estate India is a pretty promising one. According to IBEF, the Real Estate Investment Trust (REIT) platform has received permission from the Securities and Exchange Board of India (SEBI), enabling many investors to participate in the Indian real estate market. In the coming years, it will generate an opportunity in the Indian market valued at Rs. 1.25 trillion (US$19.65 billion).
It would be exciting to see how real estate In India in 2025 will progress. Government regulations and other aspects are also transforming the Indian real estate market. Some of these are-
Changing Housing Preferences
Due to a lack of Ready-to-Move-In (RTMI) inventory and increased prices in gated communities, purchasers look towards individual houses, resale properties, and under-construction developments. These properties offer a suitable living space without the wait or the expensive expense of interiors, and they are in high demand.
Post Pandemic Changes
The COVID-19 epidemic significantly altered the working environment in enterprises. Businesses that formerly had offices in tier 1 cities are increasingly expanding to tier 2 and tier 3 cities, driving up demand in the sector. This is due to overcrowding and lower lease rates in tier 2 and 3 cities.
Government Policies
The Indian government continues to deliver on its promise of cheap housing through successful government initiatives and programs. Given that over 50% of Indian household savings are invested in real estate, these actions benefit the industry. The Reserve Bank of India (RBI) keeps policy rates the same, supporting the housing sector’s rapid expansion. One of the promising initiatives is “Housing for All,” which provides accessibility to good homes for the wider public. Such key policies can push the market ahead and the economy.
Smart Home Technology Rise
Smart home automation will be the significant driver for India’s growing real estate market in 2024. Besides this, the rise of data collection technology is further helping growth. The ease with which one may now access market data, inspect properties through virtual tours, and buy or sell a home with a single click is revolutionising the home-hunting experience. People can find affordable properties and reduce the amount of time they spend commuting daily.
According to Statista, the smart home market is anticipated to grow to US$6.5 billion by the end of 2024. With revenue predicted to expand at a 9.14% annual rate (CAGR 2024–2028), the market will likely reach a projected value of US$9.2 billion by 2028. Top real estate developers are investing in new-age technology, including automated lighting and climate control, voice-activated assistants, and intelligent security systems.
Share Market Value of Real Estate Developers in India – #RealEstateMarket
When you decide to invest in any real estate properties in India and want to know how profitable it can be, the best you can do is to get the list of real estate stocks in India. We have compiled a list of real estate developers and their share market value-
| Developers | Share Market Cap (Rs Cr) |
| DLF | 2,08,260 |
| Prestige Estates | 80,355 |
| Godrej Properties | 79,661
|
Oberoi Realty
| 66,032 |
| Raymond | 12,000 |
Sunteck Realty
| 8504 |
Summing it Up
The Indian real estate market is dynamic. Property prices will rise further as more people in the middle class strive for a more affluent lifestyle, better amenities, and resale value. Property prices are expected to stabilise and recalibrate as new launches near completion and ongoing projects see an uptick. The real estate market in India 2024 landscape is thriving and full of potential for the future.
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