What is the Market Size of Real Estate in India?

The residential, office, retail, hotel, and industrial property types, as well as the major cities, are the segments of the Indian Real Estate Market (Mumbai, Delhi, Pune, Chennai, Hyderabad, and Bangalore). The real estate market size in India is currently valued at USD 263.37 billion, and it is projected to grow at a CAGR of more than 20.51% during the following five years.

What is the market size of real estate in India?

The COVID-19 pandemic had an impact on India real estate market size. The residential sector was additionally the most severely affected, as strong lockdown measures in India's major cities had an adverse effect on property sales due to the suspension of home registrations and the sluggish release of home loans.

The industry did, however, rebound as a result of an uptick in home sales, the beginning of new projects, and rising demand for new commercial and office space, among other factors.

The expansion of the business environment and the demand for office space, as well as for housing in urban and semi-urban areas, are excellent compliments to the growth of this sector. In terms of the direct, indirect, and induced effects on all areas of the economy, the construction industry is in third place among the 14 key industries.

After the agricultural sector, the real estate industry in India is the second largest employer. Also, greater non-resident Indian (NRI) investment is anticipated in this industry over the long and short terms. 

The top cities for NRI property investors are predicted to be 

• Bangalore

• Ahmedabad

• Pune

• Chennai

• Goa

• Delhi

• Dehradun

Significant growth is also being seen in retail, hospitality, and commercial real estate, which is essential infrastructure for India's expanding demands.

India is one of the top 10 housing markets in the world in terms of price growth. IBEF (India Brand Equity Foundation) estimates that from April 2000 to September 2022, FDI in this sector—which includes construction development and activities—was USD 55.18 billion.

The real estate industry in India is fragmented, with numerous participants. The market is becoming oversupplied due to increased rivalry among market participants, which is having an effect on selling prices and land prices. Prestige Estates Projects, DLF, Prestige Group, Lodha Group, Oberoi Properties, etc. are a few of the biggest builders in the nation.

According to the Economic Times Housing Finance Summit, approximately three houses are created per 1,000 people annually, which is less than the required construction pace of five homes per 1,000 people. Urban areas currently experience a 10 million unit housing deficit. To accommodate the rise in the nation's urban population, 25 million more affordable housing units are needed by 2030. I’d like to conclude my answer here about the real estate market size in India. I hope this helps:)

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