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India Real Estate Market Analysis

The Real Estate Industry In India Market size is estimated at USD 518.5 billion in 2024, and is expected to reach USD 856 billion by 2029, at a CAGR of 8.71% during the forecast period (2024-2029).

• In 2024, India's real estate market has showcased robust momentum, witnessing significant growth across its residential, commercial, and premium sectors. According to a report by an real estate brokerage firm, residential real estate sales surged by 17% year-on-year in the first three quarters of 2024. This growth is attributed to heightened buyer confidence and a rising demand for premium housing, especially in major cities such as Mumbai, Bengaluru, and Pune.Bengaluru's residential property prices climbed by 9%, while Mumbai, NCR, and Pune experienced a 4-5% uptick, underscoring the remarkable growth in both luxury and premium segments.
• Bolstered by a consistent demand for office spaces, especially in IT-centric cities like Bengaluru and Hyderabad, the commercial sector remains vibrant. Leasing activities are on an upward trajectory, buoyed by optimistic forecasts for co-working spaces and Grade A office developments.
• By 2047, an estimated 50% of India's population will call urban centers home. This shift will ignite a surge in demand for residential, office, and retail spaces. Additionally, emerging segments such as senior living, co-living, and data centers are poised for exponential growth. Sources indicate that by 2025, India's demand for data centers in real estate is projected to grow by 15-18 million sq. ft.
• Driven by changing consumer preferences, the swift growth of organized retail real estate sees shoppers gravitating towards experiential environments that prioritize convenience, personalization, and digital integration.
• To align with these evolving expectations, retailers are embracing technological advancements, including e-commerce platforms, omnichannel strategies, and enhanced in-store digital experiences. Furthermore, sustainability and energy efficiency have transitioned from being mere options to essential mandates, as businesses address environmental concerns, adhere to regulatory standards, and cater to the rising consumer demand for eco-conscious spaces.
• In July 2024-25 Union Budget, the central government has rolled out the Pradhan Mantri Awas Yojana Urban 2.0 (PMAY), catering to the housing demands of 1 crore urban poor and middle-class families. This ambitious endeavor, underpinned by a substantial investment of Rs. 10 lakh crore (USD 120.16 billion), is instrumental in invigorating India's real estate sector, particularly by amplifying the demand for affordable and mid-segment housing.
• Pradhan Mantri Awas Yojana Urban 2.0 marks the latest iteration of the government's flagship housing initiative. Its primary goal is to ensure affordable housing for economically weaker sections (EWS), low-income groups (LIG), and middle-income groups (MIG) in urban locales. This initiative emphasizes the vision of 'housing for all', leveraging subsidies, fostering public-private partnerships, and prioritizing the construction of sustainable, energy-efficient housing units.
• As urbanization accelerates, bolstered by infrastructure advancements and job opportunities, the real estate landscape is set to shift. Beyond just tier I cities, smaller towns and cities are emerging as new growth centers. Notably, the peripheries of established cities, along with tier II and III locales, are poised for a surge in real estate development across various asset classes.

India Real Estate Industry Segmentation

The real estate sector includes various phases of property dealings, including developing, selling, buying, leasing, and management processes in the commercial sector, residential sector, etc.

The report provides a comprehensive background analysis of the market, covering the current market trends, restraints, technological updates, and detailed information on various segments and the competitive landscape of the industry. 

The real estate industry in India is segmented by property type (residential, office, retail, hospitality, and industrial) and cities (Mumbai, Delhi, Pune, Chennai, Hyderabad, and Bangalore). The report offers market size and forecasts for all the above segments in value (USD).