India’s real estate sector is poised for remarkable growth, driven by urbanization, government initiatives, and technological advancements. With the economy expected to grow at a CAGR of 6.5% over the next five years, the sector’s contribution to GDP is projected to increase from 7% to 15% by 2030.
The real estate sector is expected to grow significantly between 2024 to 2030 with rise in built-up supply across segments. Driven by growing demand for residential & commercial developments, the total built-up supply of organized real estate in top 8 cities is expected to grow by 42% over the forecasted period.
Key Growth Drivers:
Urbanization: By 2030, 38% of India’s population will reside in urban areas, fostering increased demand for residential and commercial spaces.
Policy Push: Indian real estate sector has seen significant policy interventions aimed at fostering growth and sustainable development. Policies such as Real Estate Regulation and Development Act (RERA), Pradhan Mantri Awas Yojana (PMAY), and Smart Cities Mission along with various initiatives to drive sustainable development is providing the necessary impetus to the sector.
Foreign Direct Investment (FDI) & REITs: Increasing capital inflows and retail investments are fueling growth of organized real estate in India.
Technology & Innovation: The rise of property-tech platforms and smart home solutions is enhancing efficiency and consumer experience. Advancements in building technology is revolutionizing built spaces by increasing efficiency, lowering costs, and enhancing occupant experiences. Innovations such as smart building systems, IoT-enabled sensors, AI-driven analytics, and automation are at the forefront of this transformation. The adoption of cloud-based building management systems (BMS) and the use of sustainable materials are key trends shaping the future of real estate and building management in India.
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