Real estate investment in India

As of December 2025, the Indian real estate market is experiencing robust growth, with the sector projected to reach a value of US$ 5.8 trillion by 2047, contributing 15.5% to GDP.

The residential market alone is estimated to be worth around USD 399 billion in 2025, with a CAGR of nearly 10% through 2030, driven by urbanization, government incentives, and rising incomes.

Luxury housing remains strong, with demand increasing by 28% YoY in major cities, while the overall market continues to expand despite some slowdown in luxury and affordable segments due to economic factors.

The sector benefits from supportive policies, increased foreign investment, and a shift towards larger, premium homes, with the market poised for sustained growth in the coming years.

With government initiatives like Smart Cities and Affordable Housing, along with reforms such as RERA and GST, the sector is witnessing increased transparency, investor confidence, and sustainable development, making it a key driver for India's development trajectory.

Rapid urban migration is likely to significantly boost the demand for affordable residential properties, creating a robust market for investment in residential projects.

As more people move to urban areas seeking better opportunities, the need for affordable housing will grow, encouraging developers and investors to focus on creating cost-effective housing solutions, which in turn can stimulate economic growth and address housing shortages in these expanding urban centres.

India's rise as a global power has significantly boosted the demand for commercial real estate, encompassing office spaces, shopping malls, and specialized economic zones tailored for diverse industries.

This growth reflects increased foreign and domestic investments, expanding corporate footprints, and government initiatives aimed at enhancing infrastructure and industrial corridors, thereby fostering a dynamic commercial real estate sector that supports India's evolving economic landscape.

NRI and Foreign investment undoubtedly boosts growth prospects in the sector by providing essential capital, facilitating technology transfer, and fostering access to international markets, which can lead to increased productivity, innovation, and job creation.

The evolving real estate landscape presents significant opportunities for growth and innovation, which can lead to improved living standards by introducing more sustainable, affordable, and technologically advanced housing solutions.

Additionally, this sector's development can stimulate economic activity, create jobs, and attract investment, thereby strengthening the overall market environment and fostering a resilient, modern economy.

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