India Real Estate Market to Reach USD 985.50 Billion by 2030, Driven by Urbanization and Affordable Housing


Posted June 25, 2025 by ismail

The Real Estate Industry In India Market size is estimated at USD 332.85 billion in 2025, and is expected to reach USD 985.80 billion by 2030, at a CAGR of 24.25% during the forecast period (2025-2030).

 
Introduction:

The India Real Estate Market is poised for significant growth, with a projected market value of USD 985.50 billion by 2030. The sector is experiencing robust expansion, fueled by rapid urbanization, increasing disposable incomes, and a growing middle class. As one of the largest and fastest-growing economies in the world, India's real estate sector is attracting substantial investments, both from domestic and international players. This growth is not only driven by commercial and residential demand but also by a rising emphasis on affordable housing, which is becoming a key focus area for developers and government initiatives.

India Real Estate Market plays a vital role in a country's economic development, contributing significantly to employment and GDP. The government's push for infrastructure development, along with reforms like the Goods and Services Tax (GST) and RERA (Real Estate Regulation and Development Act), has also streamlined processes, making the industry more transparent and investor friendly. This press release highlights the key trends, market segmentation, and the main players shaping India's real estate industry in 2025 and beyond.

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Key Trends Driving the Indian Real Estate Market:

Rising Urbanization:
India continues to urbanize at an unprecedented rate, with more than 34% of its population residing in urban areas. This trend is expected to accelerate, driving demand for both residential and commercial real estate. Urban centers are seeing increased development in mixed-use properties, smart cities, and affordable housing projects aimed at accommodating the growing urban population.

Government Support for Affordable Housing:
The Indian government has made affordable housing a priority, with initiatives like the Pradhan Mantri Awas Yojana (PMAY) aiming to provide affordable homes to the underprivileged. This initiative, combined with tax incentives for developers, has resulted in a surge in affordable housing projects. The sector’s growth is also bolstered by public-private partnerships, which have facilitated more housing opportunities for low and middle-income groups.

Technological Integration:
Technology is playing a pivotal role in shaping the Indian real estate landscape. From digital property marketplaces to automated construction processes, technological advancements are streamlining operations, reducing costs, and enhancing the efficiency of the sector. The introduction of artificial intelligence and data analytics in property valuation, customer service, and project management is transforming how real estate transactions are conducted.

Shift in Commercial Real Estate:
There has been a shift towards flexible workspaces, with companies opting for co-working models, which has become increasingly popular in major metropolitan cities. Additionally, the rise of e-commerce has resulted in increased demand for industrial and logistics real estate, particularly in areas with robust infrastructure and connectivity.

Sustainability and Green Building Initiatives:
Sustainability is becoming a critical factor for both developers and consumers. Green buildings that adhere to sustainable construction practices, energy-efficient systems, and low carbon footprints are gaining traction. Certification systems like LEED and GRIHA are becoming benchmarks for new projects, as developers aim to cater to environmentally conscious buyers and tenants.

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Market Segmentation:

The Indian real estate market can be segmented into various categories, including residential, commercial, and retail real estate, each showing distinct growth patterns and demands. The market can further be divided based on geography, product type, and end-user segments.

By Property Type:

Residential: This segment includes affordable housing, luxury apartments, villas, and gated communities. With the rise of urbanization, the demand for residential properties is surging, particularly in cities like Delhi, Mumbai, and Bangalore.

Commercial: The demand for office spaces, particularly in Tier 1 cities, is increasing. The growing trend of flexible workspaces and the rise of co-working spaces are notable shifts in the commercial real estate sector.

Retail: Malls, shopping complexes, and retail parks continue to thrive in India, particularly in urban areas. However, the rise of e-commerce has also impacted the demand for traditional retail space, leading to more hybrid retail models combining physical and online shopping experiences.

By Geography:

Tier 1 Cities (Mumbai, Delhi, Bangalore, Chennai): These cities dominate the real estate market due to their high demand for both commercial and residential properties.

Tier 2 and Tier 3 Cities: While Tier 1 cities remain the primary focus, Tier 2 and Tier 3 cities are witnessing increased activity in residential real estate, particularly affordable housing, due to the migration of people from rural areas seeking better employment opportunities.

By End-User:

Home Buyers: With rising income levels, an increasing number of middle-class families are now able to afford homes. This is bolstered by the government's focus on affordable housing and home loan subsidies.

Investors: The real estate market in India continues to attract both domestic and international investors. The sector provides opportunities for capital appreciation, rental income, and long-term value.

Corporates and SMEs: Companies and small-to-medium enterprises are looking for office spaces, co-working spaces, and logistics hubs to support their operations.

Key Players in the Indian Real Estate Market:

DLF Ltd.: One of the largest and most prominent real estate developers in India, DLF has a diverse portfolio ranging from residential to commercial properties. The company is known for its flagship projects in cities like Delhi, Gurgaon, and Chandigarh.

Lodha Group: A major player in the luxury residential space, Lodha Group has also ventured into commercial properties. The company has made significant inroads into Mumbai’s real estate sector and continues to expand its offerings.

Godrej Properties Ltd.: Part of the Godrej Group, Godrej Properties has a strong presence in residential, commercial, and township development. Known for its innovative approach, the company has a diverse portfolio of projects in metropolitan areas.

Mahindra Lifespace Developers: Specializing in residential developments and integrated cities, Mahindra Lifespace Developers has a strong presence in Tier 1 and Tier 2 cities. The company is also committed to sustainable development practices.

Prestige Group: Based in Bangalore, Prestige Group is a well-established name in the Indian real estate market, known for its commercial, residential, and retail developments.

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Conclusion:
The Indian real estate market presents a wealth of opportunities, driven by urbanization, government policies, and changing consumer preferences. As the demand for residential, commercial, and retail spaces grows, investors and developers are positioning themselves to meet this demand. With a focus on affordable housing, technological integration, and sustainability, India’s real estate sector is set for continued expansion. Looking forward, the industry will play a key role in India’s economic growth, attracting both domestic and international stakeholders eager to capitalize on the country’s vast potential.

For a detailed overview and more insights, you can refer to the full market research report by Mordor Intelligence: https://www.mordorintelligence.com/industry-reports/real-estate-industry-in-india?utm_source=prfree

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Last Updated June 25, 2025