India Residential Real Estate Market: Current Analysis and Forecast (2024-2032)

The Indian residential real estate market is an active one and it is continuously growing due to factors such as urbanization, a rising middle-class population, and higher incidences of income. Major sections of the market include the affordable housing segment, especially in Tier 2 & Tier 3 cities; the Habitat segment has good demand due to government policies like Pradhan Mantri Awas Yojana. Therefore, there is a variety of developers ranging from leading companies as well as small newly formed companies to satisfy the diverse needs of the buyers. Measures are improving transnationality and boosting technological solutions, while the problems of sustainable development contribute to adopting environmentally friendly construction solutions.

The India Residential Real Estate Market is expected to grow at a steady rate of around 24.1% owing to the rising company expansions. For instance, in July 2024, Realty major DLF announced to launch of a nearly 37 million square feet area for sale in the medium term across various cities with a revenue potential of Rs 1.04 lakh crore as part of its strategy to encash strong demand for luxury homes. In its latest investor presentation for the April-June quarter, DLF informed about the "planned launches of Rs 1+ lakh crore (36 million square feet) of new products over the medium term". Moreover, rapid urbanization, growing government initiatives, and low interest rates on housing are anticipated to boost the Indian residential real estate market.

Based on property type, the market is segmented into apartments & flats, independent houses & villas, builder floors, and others. The builder floors segment is growing in the market as a preferred class of properties for home seekers, especially in urban and semi-urban monetary zones. This segment, containing individual floors in multi-story houses, has several pleasant peculiarities such as higher levels of privacy, more efficient space management, and the possibility of receiving additional revenues due to rental incomes which may attract middle-class families and investors. With the land space in towns drawing nearer to a climax and the prices per build ascending, builder floors offer another secular compared to conventional building and selling of flats availing affordable building solutions, located in elegant areas near to centrality and basic facilities. Further, the segment is in sync with the global commitment toward self-sufficient living pods in a bid to meet the ever-escalating need for homes that are cozy as well as convenient.

Based on the development stage, the Indian residential real estate market is bifurcated into new construction and resale. The resale segment of residential real estate in India has shown signs of considerable growth due to various reasons such as ownership of homes and changing consumer profiles. Many people and households desire to move for larger or better-placed units, which has made the resale market appealing since they offer developed neighborhoods with utilities and linkages. Further, the technological advancement that a shift to Web-based marketplaces has offered property buyers and sellers more absorptive forms of information making the market more open and accessible. The latter includes the resale segment, as people believe that investing in second-hand properties can also potentially increase in value. Moreover, the more permanent and secure nature of resale properties gives buyers that security that makes this segment more secure even during economic downturns. All in all, the resale market is emerging as an important segment of the residential real estate segment in India meeting the various requirements and trends. Thus, the resale segment held a significant share of the market in the year 2023.

Based on the mode of contact, the Indian residential real estate market is segmented into online and offline. The online segment of India's residential real estate market has grown especially at a higher rate because of the increased use of technology in property deals by consumers and originators. Real estate business selling, buying, or renting space mostly involves listings, virtual tours, and other types of paperless documentation available through online platforms have shifted that perspective and made the process easier. The solutions have acted as a positive driving force that allows real estate companies to improve internal processes and provide their customers with better experiences; on the other hand, the buyers have broader offers to choose the solutions that best meet their needs to do so conveniently at home. Further, advancements in the smartphone and internet facilities have increased the reach to the customer base, and more clients including first-time home buyers and millennials have been attracted into the market. The online segment should continue to grow as consumer preferences focus on digital, altering the structural environment of India's residential property market. Thus, online held a significant share of the market in the year 2023.

For a better understanding of the market adoption of Indian residential real estate, the market is analyzed based on its state-wise presence in India such as North India, East India, West India, and South India. The residential real estate market in north India is growing at a fast pace due to changes in lifestyles, expansion of infrastructures, and enhancement of affordable housing stocks. Delhi, Gurugram, Noida, and Chandigarh have seen new projects coming up, especially in the mid and affordable housing segments because of government policies facilitating housing for all. Public transportation facilities such as the expansion of the metro routes and Expressways have also contributed to the buyers' interest in suburban destinations resulting in diversified housing typologies. This growth is made possible by increasing disposable income and the increasing size of the middle-income earners making north India a promising location for residential property investment. For instance, in October 2024, Realty firm Godrej Properties won a bid to acquire 7.5 acres of land in Gurugram to develop a luxury housing project with a revenue potential of more than Rs 5,500 crore. Thus, north India is growing at a significant rate in the Indian residential real estate market.

Some of the major players operating in the market include Godrej Properties; Prestige Estates Projects Ltd.; DLF; The Phoenix Mills Limited; LARSEN & TOUBRO LIMITED; Omaxe Ltd.; ANSAL API Group; SOBHA Limited; Oberoi Realty Limited; Sunteck Realty Limited.