top of page
Search

India's Real Estate Sector: Comprehensive Industry Analysis | Scrolls

by KarNivesh | 24 August, 2025

Overview of India’s Real Estate Sector

India’s real estate industry is on a high-growth trajectory, transitioning from a fragmented market to a tech-driven and regulated ecosystem. Currently valued at about ₹39.6 trillion (₹39.6 lakh crore), the sector is projected to reach ₹98.3 trillion (₹98.3 lakh crore) by 2030, contributing significantly to GDP and employment. It already accounts for around 7.3% of India’s GDP, with expectations to rise to 15.5% by 2047.

India Real Estate Market Size Growth: Projected expansion from ₹39.6 trillion in 2022 to ₹98.3 trillion by 2030
India Real Estate Market Size Growth: Projected expansion from ₹39.6 trillion in 2022 to ₹98.3 trillion by 2030

Market Composition: The sector has four key subsectors residential (80%), commercial (15%), and the remaining 5% from industrial/warehousing, retail, and hospitality. Residential demand is fueled by urbanization, rising incomes, and changing lifestyles. Commercial real estate thrives on IT and co-working demand, while industrial and warehousing is the fastest-growing, driven by e-commerce and manufacturing expansion.

Sector-wise Market Share: Residential segment dominates with 80% share, followed by commercial at 15%
Sector-wise Market Share: Residential segment dominates with 80% share, followed by commercial at 15%

Growth Metrics:

  • Home sales in FY23 surged 48% year-on-year, reaching a record ₹3.47 lakh crore ($42 billion or ₹3.44 lakh crore).

  • Institutional investments hit ₹730 billion ($8.9 billion or ₹730 billion) in 2024, with foreign investors contributing nearly two-thirds.

  • PE/VC investments across real estate and infrastructure were ₹4.6 lakh crore ($56 billion) in 2024.

  • M&A deal values rose 81% to about ₹5.86 lakh crore ($71.5 billion) in 2024.


Key Players: The market is dominated by developers like DLF (₹2.14 lakh crore market cap ≈$25.8B), Macrotech/Lodha (₹1.28 lakh crore ≈$15.4B), Godrej Properties (₹85,200 crore ≈$10.3B), along with Prestige, Oberoi, Brigade, and Sobha. These firms have seen robust pre-sales growth, reflecting buyer confidence.

Trends & Innovations: The sector is embracing PropTech with AI, IoT, and cloud-based systems. Sustainability is a major focus, with green-certified projects and renewable integration. Luxury housing is booming; sales of homes priced above ₹4 crore (≈$0.5M) rose 53% in 2024. Post-pandemic, demand for larger suburban homes and integrated communities has increased.


Challenges:

  • Affordable housing shortage: India has an 18.78 million unit housing deficit, mostly in EWS/LIG segments.

  • Supply of homes below ₹1 crore fell 36% between 2022–2024 due to developers focusing on higher-margin luxury segments.

  • Regulatory hurdles, land acquisition complexities, high borrowing costs, and skilled labor shortages slow development.


Opportunities:

  • Urbanization (38% population urban by 2030), expanding Tier-2 and Tier-3 city markets.

  • Government support via RERA, PMAY, and Smart Cities Mission.

  • New asset classes like data centers, student housing, healthcare real estate, and logistics parks.


Outlook: By 2030, the sector could surpass ₹83–98 trillion (≈$1–1.18 trillion). Companies focusing on sustainability, affordable housing, and technology adoption are likely to lead. India’s real estate evolution offers significant opportunities for investors and developers, making it a cornerstone of the country’s economic future.

 

Comments

bottom of page