India Residential Real Estate Market is expected to grow at a CAGR of 3.38% Through 2030

Increase in the expenditure capacity and the development of the construction industry is expected to drive the demand for India residential real estate market in the forecast period.

According to TechSci Research report, “India Residential Real Estate Market - By Region, Competition Forecast & Opportunities, 2020-2030F, India Residential Real Estate market was valued at USD 36.02 Billion in 2024 and is expected to reach USD 44.37 Billion by 2030 with a CAGR of 3.38% during the forecast period. 

India's rapid urbanization and burgeoning population are pivotal drivers of the residential real estate market. With an estimated urban population exceeding 600 million by 2030, cities are becoming hubs of economic activity, attracting job seekers, students, and businesses. This migration fuels demand for residential spaces in both metropolitan and emerging urban centers. The rise in population, particularly among the younger demographic, intensifies the need for affordable and quality housing. Millennials and Gen Z, who make up a substantial portion of the population, are driving trends toward smaller, compact apartments with modern amenities. Urbanization has also spurred the growth of satellite cities and suburban areas, as people seek more affordable housing options within commuting distance of urban hubs. 

Smart city initiatives and infrastructure developments such as metro rail projects, expressways, and public utilities enhance the livability of urban regions, further boosting demand. Additionally, the trend of nuclear families has increased the demand for independent housing units and apartments. Urbanization's challenges, such as overcrowding and rising property prices, have also prompted innovations like co-living spaces, affordable housing schemes, and green buildings. Together, these factors ensure sustained growth and diversification in the residential real estate market.

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Base on Category, Individual Houses or Private Dwellings segment held the largest market share in 2024. In the India residential real estate market, the category of individual houses or private dwellings is poised to dominate, driven by evolving lifestyle preferences, urbanization, and demographic shifts. Individual houses typically refer to standalone properties owned by a single entity or family, distinguished from apartments or multi-family dwellings. One of the key drivers of the dominance of individual houses is the growing preference for privacy, space, and customization among homebuyers, particularly in urban and peri-urban areas. Many buyers, including families and high-net-worth individuals, opt for standalone houses to enjoy greater autonomy in terms of design, layout, and amenities compared to apartments. Demographic trends also contribute significantly to the demand for individual houses. As nuclear families become more prevalent, there is a heightened demand for larger homes that can accommodate multiple generations or provide separate spaces for work-from-home setups and recreational activities. Additionally, the preference for homes with outdoor spaces, gardens, and parking facilities further fuels the demand for individual houses over other types of residential properties.

Urbanization plays a crucial role in shaping the dominance of individual houses in the market. As cities expand and urban sprawl increases, there is a continuous development of residential neighborhoods and suburban areas where standalone houses are preferred. These locations often offer a quieter, more suburban lifestyle while remaining accessible to urban amenities and employment centers, appealing to a broad spectrum of homebuyers. Moreover, the COVID-19 pandemic has accelerated the demand for individual houses. The shift towards remote work and decentralized living preferences has led many individuals and families to prioritize homes that offer more space, privacy, and potential for home offices or study areas. This trend has amplified the appeal of standalone houses as viable alternatives to densely populated apartment complexes.

Based on region,  East India is emerging as a key growth region in India’s residential real estate market due to a confluence of economic, infrastructural, and demographic factors. States such as West Bengal, Odisha, Jharkhand, and Bihar are witnessing significant investments in real estate development, driven by rapid urbanization, economic growth, and improved connectivity. Cities like Kolkata, Bhubaneswar, Ranchi, and Patna are experiencing an influx of people from rural areas seeking better opportunities, education, and healthcare. This urban migration has created a robust demand for residential properties across various income segments, particularly affordable housing. The government’s "Housing for All" initiatives and policies like PMAY have further boosted demand.

The expansion of roadways, railways, airports, and metro networks in cities such as Kolkata and Bhubaneswar has significantly enhanced the livability and accessibility of these regions. Development projects like the East-West Metro Corridor in Kolkata have attracted homebuyers and investors to emerging residential hubs.  The east is witnessing steady industrial growth, with Bhubaneswar being developed as a smart city and Kolkata strengthening its position as an IT and financial hub. These developments have increased employment opportunities, boosting disposable income and housing demand. 

Key market players in the India Residential Real Estate Market are:-

• Godrej Properties Limited
• DLF Limited
• Unitech Limited
• Tata Housing Development Company Limited
• INCOR Infrastructure Pvt. Ltd.
• Prestige Estates Projects Limited
• Puravankara Limited
• Sobha Limited

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"The Indian residential real estate market presents significant opportunities driven by rapid urbanization, a growing middle class, and increasing demand for housing across all income segments. Affordable housing, supported by government initiatives like "Housing for All" and tax incentives, remains a key growth driver. Tier-2 and tier-3 cities are emerging as hotspots, fueled by infrastructure development and industrialization. Rising aspirations for homeownership post-pandemic and a shift towards sustainable and tech-enabled housing further enhance market potential. With favorable demographics, evolving buyer preferences, and robust policy support, the market offers lucrative prospects for developers, investors, and other stakeholders in the real estate ecosystem.” said Mr. Karan Chechi, Research Director with TechSci Research, a research-based global management consulting firm.

"India Residential Real Estate Market By Type (New Construction, Resale), By Category (Flats & Apartments, Individual Houses or Private Dwellings, Condominium, Townhouses, Others), By Mode (Online, Offline), By Region, Competition Forecast & Opportunities, 2020-2030F” has evaluated the future growth potential of India residential real estate market and provided statistics & information on market size, shares, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the of India residential real estate market.

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