India's residential property market reached an all-time high in FY23, with home sales reaching Rs. 3.47 lakh crore (USD 42 billion), a 48 per cent year-on-year increase and a 36 per cent volume increase, according to the analyst at Brickwork Ratings.
The Indian real estate sector witnessed significant expansion with market size increasing from USD 120 billion in 2017 to USD 477 billion in 2022 and the market size is projected to reach USD 1 trillion by 2030 with an affordable housing scheme driving growth.
India's residential property market reached an all-time high in FY23, with home sales reaching Rs. 3.47 lakh crore (USD 42 billion), a 48 per cent year-on-year increase and a 36 per cent volume increase.
The Indian real estate sector has witnessed a momentum growth in housing unit completions in India, touching 4.35 lakh units in 2023 from 2.5 lakh units in 2018 and is expected to reach 5.3 lakh housing units completion by 2024.
The report stated that factors driving the growth in the residential housing market in India are the strengthening of the domestic economy, high urbanization, various government initiatives and improved infrastructure. Homeowners are increasingly adopting greener residential projects and infrastructure to reduce carbon emissions and sustainability.
The Indian real estate sector has witnessed significant expansion over the decades. This sector has grown from a market size of $120 billion in 2017 to USD 477 billion in 2022 and the market size is estimated to be worth USD 1 trillion by 2030, largely led by the affordable housing scheme, according to real estate consultant Anarock and realtors' body NAREDCO.
Notably, CREDAI, the realtors body, predicts the Indian real estate sector to significantly boost the economy, reaching USD 1.3 trillion by FY 2034 and USD 5.17 trillion by 2047. Indian real estate market size is approximately $300 billion, divided into residential and commercial segments at 80 per cent and 20 per cent.
The residential sector has experienced a strong revival in housing demand across the top seven cities- Mumbai, Delhi-NCR, Bengaluru, Hyderabad, Chennai, Kolkata, and Pune, owing to an increased realization of the importance of home ownership, post-covid-19 pandemic
According to the analyst at Brickwork Ratings, India has witnessed a significant surge in demand as well as supply of housing units across the top seven cities of India over the past decade. The research stated that between 2014 and 2023, the combined housing supply in India's top seven residential markets (cities) had soared to 29.32 lakh units while the sales had surged to an approximate 28.27 lakh unit.
India's seven major cities witnessed an annual 8 per cent growth in this sector, with the completion of housing units in 2023 at 4.35 lakh units, with improved cash flows of developers and better sales. In 2023, 4,35,045 units were completed, against 4.02 lakh units in the previous year.
The residential and commercial real estate sector is the second largest employment provider, after agriculture, generating jobs to over 50 million, 18 per cent of the country's total workforce.
This growth is expected to be primarily driven by the residential market with an expected value of USD 906 billion, followed by the office sector contributing USD 125 billion. This is in the wake of India's rising urban population, which is estimated to reach 1.55 billion by 2034.
