India real estate market is anticipated to grow at a high CAGR during the forecast period of 2025-2029, owing to the growing demand for real estate in both urban and semi-urban areas across India. Moreover, expansion of e-commerce industry has boosted the demand for warehouse facilities. Furthermore, implementation of 5G services and regulations by the government for data centre are boosting the demand for India real estate market.
Real estate refers to the property in the form of lands and buildings. It involves buying, selling or renting real estate (land, buildings, or housing). According to India Brand Equity Foundation (IBEF), real estate is expected to grow from USD 1.72 billion (Rs. 12,000 crore) in 2019 to USD 9.30 billion (Rs. 65,000 crore) in 2040. During the first nine months of FY 2022, the country witnessed land deals of more than 1,700 acres in top eight cities. The real estate sector contributed approximately 7% in FY2019 and is expected to rise to 13% during FY2025.
Rising demand for Data Centers to boost India Real Estate Market
As India goes digital, the country has seen a sharp rise in number of online payments, companies implementing permanent work from home, rise in number of over-the-top (OTT) platform & users and online education system. All these platforms gather bytes of data which needs to be stored, thus driving the demand for data centers. This has prompted the Indian government along with the state government to make regulations and inaugurate data center hubs in the country. According to India Brand Equity Foundation (IBEF), real estate demand for data centers is expected to grow by 15-18 million sq. ft. by the end of 2025. Various Indian and International Data Centers firms are investing in the Indian market. For instance, Bharti Airtel Group in January announced that it would be investing USD 234.60 million for setting up a large hyper scale data center through its data center subsidiary Nxtra Data Centers in Telangana. Through this investment, Bharti Airtel is looking to increase its footprint in the state. Moreover, Adani Group announced an investment of USD 2660.50 million in the month of May. The proposed data center would have an integrated business park in the state of Telangana.
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Increasing Demand for Affordable Housing to boost India Real Estate Market
The housing market is dominated by the high demand for affordable housing. According to the India Brand Equity Foundation, there are currently 10 million vacancies in urban areas. By 2030, the country would need 25 million more affordable housing units to accommodate the rising urban population. The Real Estate Regulatory Authority (RERA), Real Estate Investment Trusts (REITs), and housing initiatives like PMAY (Pradhan-Mantri Awas Yojana) and SWAMIH (Special Window for Completion of Construction of Affordable and Mid-Income Housing Projects) have all contributed to the push for policy, which has been beneficial to the real estate industry. Since 2014, the housing for all (HFA) program has resulted in the completion of more than one million housing units across the north Indian state of Uttar Pradesh as of May 2, 2022. Over 328 thousand new housing units were introduced to the Indian residential market in 2022. Despite the country’s high demand for housing, residential launches have been relatively high over the past few years. The Pradhan Mantri Awas Yojana (PMAY, or The Prime Minister’s Housing Plan) would have completed 6.5 million houses in India’s urban areas by 2022. The Reserve Bank of India reports that Indian banks advanced approximately USD 24.44 billion (Rs. 2 trillion) in housing loans during the fiscal year 2022, nearly reaching pre-COVID levels. Since an increasing number of Indians were investing in the purchase of a residential property, it reflected a resurgence in homebuyer sentiment.
NRI investments in Indian real estate have doubled, thus expected to drive the India Real Estate Market
The proportion of non-resident Indians (NRIs) in the Indian property market is anticipated to double since the Covid-19 pandemic. DLF is looking to put more emphasis on the NRI market. With the exception of the Middle East and Southeast Asia, where the NRIs are currently based, the United States is one of our largest markets. According to a recent survey conducted by India Sotheby’s International Realty, a significant number of high-net-worth individuals (HNIs), many of whom are non-resident Indians (NRIs), intend to purchase luxury real estate in India within the next two years. They think now is a good time to buy bigger homes in their own country. NRIs can now more easily invest in Indian real estate due to the strength of the dollar against the Indian rupee. Condominiums, branded homes, luxury villas, and vilaments have been purchased by non-resident Indians. The number of non-resident Indians looking to invest in Indian real estate has increased as a result of the digitization of procedures, advantageous currency changes, indexation benefits for properties held in India, and an easy tax system.
Reduction In Interest Rates and Stamp Duty is expected to boost the India Real Estate Market
Since 2021, premier lending institutions have offered appealing home loan options in the range of 6.75 percent to 7.5 percent, resulting in historically low interest rates on housing loans. At current interest rates, home loans enable substantial savings while producing an asset for end-use or investment purpose. As a matter of fact, lower interest rate gives borrowers a chance to increase the amount of their loan, making it easier for them to choose a property with better amenities and lifestyle facilities in premium segment neighborhoods. As a result, interest rates have an effect on the price and demand for real estate. Lower rates attract more buyers because they not only make it cheaper to get a mortgage, but increase demand for real estate, which would raise prices. Investors can reduce this risk by purchasing Real estate investment trusts (REITs) or other diversified holdings that are either not tied to economic cycles or that can withstand pandemic. Real estate prices frequently follow the cycles of the economy. Demand for real estate can be boosted or decreased by government policies and regulations, such as tax breaks, deductions and subsidies. For instance, a reduction in stamp duty in Maharashtra to 3% until March 31, 2021, has significantly contributed to the increase in luxury residential real estate market in Mumbai. The Minister for Housing and Urban Affairs has urged other states to follow the road. In the upcoming period, sales could be sustained by low interest rates and lower stamp duty. In India, the Central Board of Directors of the Reserve Bank of India (RBI) is in charge of setting interest rates. The benchmark repo rate which is set by the Reserve Bank of India remained at a record low of 4%. However, for the first time in two years, India’s central bank attempted to reduce high consumer prices in May 2022 by raising the benchmark interest rate. The repo rate was increased by 40 basis points to 4.4% at which the Reserve Bank of India (RBI) lends money to commercial banks. The repo rate had fallen to a record low of 4% during the Covid-19 pandemic. Therefore, the above factors are expected to boost the demand for India Real Estate Market during the forecast period.
Recent Developments
- In February 2023, USD9621.90 million, an increase of 66% as compared to previous year were allocated by the Indian Government for the Pradhan Mantri Awas Yojana (PMAY). The government would now be providing the buyers with a subsidy in the interest of loan. A total of USD16200 million in assistance has been given.
- Realty firm M3M India bought 3 acres of land in Noida in March 2023 for USD30.50 million and would invest another USD42.60 million to develop a project involving retail space and studio apartments. The total investment is expected to be USD73.10 million to develop this project located at Sector 72, Noida. According to the company, M3M purchased this 3-acre land through e-auction from Noida Authorities. The actual land cost is USD21.90 million. The figure would reach USD30.50 million including registration charges and lease fees.
Market Segmentation
India Real Estate Market is segmented based on property type, business, and region. Based on property type, the market is divided into residential, commercial, land, and industrial. Based on business, the market is divided into sales, rental, and lease. Based on region, the market is divided into North India, South India, East India, and West India.
Market Players
Major market players of India Real Estate Market are DLF Limited, Godrej Properties Limited, Brigade Enterprises Limited, Oberoi Realty Limited, Prestige Estates Projects Limited, Lodha Developers Limited, Tata Realty and Infrastructure Limited, Hiranandani Group, Mahindra Lifespace Developers Limited, Phoenix Mills Limited
| Attribute | Details |
| Base Year | 2023 |
| Historic Data | 2019 – 2022 |
| Estimated Year | 2024 |
| Forecast Period | 2025 – 2029 |
| Quantitative Units | Revenue in USD Million, and CAGR for 2019-2023 and 2024-2029 |
| Report coverage | Revenue forecast, company share, growth factors, and trends |
| Segments covered | Property Type
Business Region |
| Regional scope | North India, South India, East India, West India |
| Key companies profiled | DLF Limited, Godrej Properties Limited, Brigade Enterprises Limited, Oberoi Realty Limited, Prestige Estates Projects Limited, Lodha Developers Limited, Tata Realty and Infrastructure Limited, Hiranandani Group, Mahindra Lifespace Developers Limited, Phoenix Mills Limited. |
| Customization scope | 10% free report customization with purchase. Addition or alteration to country, regional & segment scope. |
| Pricing and purchase options | Avail customized purchase options to meet your exact research needs. Explore purchase options |
| Delivery Format | PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request) |
Report Scope:
In this report, India Real Estate Market has been segmented into following categories, in addition to the industry trends which have also been detailed below:
- India Real Estate Market, By Property Type:
o Residential
o Commercial
o Land
o Industrial
- India Real Estate Market, By Business:
o Sales
o Rental
o Lease
- India Real Estate Market, By Region:
o North India
o South India
o East India
o West India
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in India real estate Market
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Table of Content-India Real Estate Market
- Product Overview
1.1. Market Definition
1.2. Scope of the Market
1.2.1. Markets Covered
1.2.2. Years Considered for Study
1.2.3. Key Market Segmentations
- Research Methodology
2.1. Baseline Methodology
2.2. Key Industry Partners
2.3. Major Association and Secondary Sources
2.4. Forecasting Methodology
2.5. Data Triangulation & Validation
2.6. Assumptions and Limitations
- Executive Summary
- Voice of Customers
- India Real Estate Market Outlook
5.1. Market Size & Forecast
5.1.1. By Value
5.2. Market Share & Forecast
5.2.1. By Property Type (Residential, Commercial, Land and Industrial)
5.2.2. By Business (Sales, Rental and Lease)
5.2.3. By Region (North, South, West and East)
5.3. By Company (2023)
5.4. Market Map
- North India Real Estate Market Outlook
6.1. Market Size & Forecast
6.1.1. By Value
6.2. Market Share & Forecast
6.2.1. By Property Type
6.2.2. By Business
6.2.3. By Top 3 States
- South India Real Estate Market Outlook
7.1. Market Size & Forecast
7.1.1. By Value
7.2. Market Share & Forecast
7.2.1. By Property Type
7.2.2. By Business
7.2.3. By Top 3 States
- West India Real Estate Market Outlook
8.1. Market Size & Forecast
8.1.1. By Value
8.2. Market Share & Forecast
8.2.1. By Property Type
8.2.2. By Business
8.2.3. By Top 3 States
- East India Real Estate Market Outlook
9.1. Market Size & Forecast
9.1.1. By Value
9.2. Market Share & Forecast
9.2.1. By Property Type
9.2.2. By Business
9.2.3. By Top 3 States
- Market Dynamics
10.1. Drivers
10.2. Challenges
- Market Trends & Developments
- Policy & Regulatory Landscape
- India Economic Profile
- Company Profiles
14.1. DLF Limited
14.1.1. Business Overview
14.1.2. Key Revenue and Financials (If available)
14.1.3. Recent Developments
14.1.4. Key Personnel
14.1.5. Key Product/Services
14.2. Godrej Properties Limited
14.2.1. Business Overview
14.2.2. Key Revenue and Financials (If available)
14.2.3. Recent Developments
14.2.4. Key Personnel
14.2.5. Key Product/Services
14.3. Brigade Enterprises Limited
14.3.1. Business Overview
14.3.2. Key Revenue and Financials (If available)
14.3.3. Recent Developments
14.3.4. Key Personnel
14.3.5. Key Product/Services
14.4. Oberoi Realty Limited
14.4.1. Business Overview
14.4.2. Key Revenue and Financials (If available)
14.4.3. Recent Developments
14.4.4. Key Personnel
14.4.5. Key Product/Services
14.5. Prestige Estates Projects Limited
14.5.1. Business Overview
14.5.2. Key Revenue and Financials (If available)
14.5.3. Recent Developments
14.5.4. Key Personnel
14.5.5. Key Product/Services
14.6. Lodha Developers Limited
14.6.1. Business Overview
14.6.2. Key Revenue and Financials (If available)
14.6.3. Recent Developments
14.6.4. Key Personnel
14.6.5. Key Product/Services
14.7. Tata Realty and Infrastructure Limited
14.7.1. Business Overview
14.7.2. Key Revenue and Financials (If available)
14.7.3. Recent Developments
14.7.4. Key Personnel
14.7.5. Key Product/Services
14.8. Hiranandani Group
14.8.1. Business Overview
14.8.2. Key Revenue and Financials (If available)
14.8.3. Recent Developments
14.8.4. Key Personnel
14.8.5. Key Product/Services
14.9. Mahindra Lifespace Developers Limited
14.9.1. Business Overview
14.9.2. Key Revenue and Financials (If available)
14.9.3. Recent Developments
14.9.4. Key Personnel
14.9.5. Key Product/Services
14.10. Phoenix Mills Limited
14.10.1. Business Overview
14.10.2. Key Revenue and Financials (If available)
14.10.3. Recent Developments
14.10.4. Key Personnel
14.10.5. Key Product/Services
- Strategic Recommendations
16. About Us & Disclaimer