As India continues to witness rapid urbanization and a surge in per capita income, the demand for residential buildings is expected to be the primary driver behind the anticipated growth of the Indian real estate market. With an increasing number of migrants from non-metro cities seeking employment and educational opportunities in metro cities, the market is experiencing a significant boost. Furthermore, the rising demand for modern office spaces and the emerging trend of new lodging options in urban and semi-urban areas are contributing factors to the market’s expansion. To support this growth, the Indian government has implemented policies such as the Real Estate (Regulation and Development) Act and the Smart Cities Mission.
According to a recent report by the International Market Analysis Research and Consulting Group (IMARC Group), the Indian real estate market is projected to grow at a compound annual growth rate (CAGR) of 9.2% by 2028. This market encompasses various aspects of real estate transactions, including commercial and residential sectors, involving buying, selling, leasing, and managing properties. It encompasses a wide range of properties such as undeveloped land, vacant property, apartments, condominiums, townhouses, and housing options for individuals and families. Investors are attracted to real estate due to its advantages, such as tax savings, long-term security, asset diversification, passive income, capital growth, and protection against inflation.
The IMARC survey provides a comprehensive analysis of the Indian real estate market. In 2022, the market size was estimated at US$ 256.8 billion. Looking ahead, the market is expected to reach US$ 780.6 billion by 2028, growing at a CAGR of 9.2% from 2023. The increasing demand for residential properties, driven by population growth and the need for additional income sources, is a key factor contributing to the market’s positive outlook. Moreover, substantial investments in infrastructure, including highways, airports, and metro systems, are creating new micro-markets and further driving market expansion.
With a young and growing population, a burgeoning middle class, and government support, the Indian real estate market is well-positioned for future growth. In addition to the aforementioned factors, several emerging trends are expected to impact the market in the coming years, such as the rising demand for affordable housing, environmentally friendly and sustainable properties, the growth of co-living and co-working spaces, and the increasing use of internet platforms for real estate transactions.
The Indian real estate market is poised for substantial growth in the years ahead. Factors such as urbanization, infrastructure development, increasing housing demand, and supportive government policies are driving this expansion. As the market continues to evolve, trends such as affordable housing, sustainable properties, and digital platforms are expected to shape its trajectory.
Also Read:- Positive Momentum in Indian Real Estate Market: Housing Prices Surge in 43 Cities, NHB Reports.