According to a recent industry report, there will be $1 trillion of real estate sales in India by 2030, contributing 13 per cent to the gross domestic product (GDP) by 2025. Here are some factors behind the massive boom in India’s real estate market.

Urbanisation in full swing

With more than half of its citizens living in cities, India is one of the most urbanised nations in the world. As more and more people relocate to metropolitan regions in search of employment and better opportunities, this trend is anticipated to continue in the upcoming years.

Rapid growth of the middle class

India's middle class is rapidly growing, with an increasing number of people having enough money to buy property. As a result, housing demand is increasing, especially in the low and moderate-price categories.

Infrastructure push

Infrastructure development has been significantly funded by the government, which has made it simpler for people to live and work in cities. Due to people's increased willingness to purchase homes in locations with strong infrastructure, this is also increasing demand for real estate.

Foreign investments

India is becoming a more popular real estate investment location for foreign investors. This has been brought on by various elements, such as the nation's robust economic growth, increasing disposable incomes, and a favourable investment environment.

Government support

To stimulate the real estate market, the government has offered various incentives, including tax reductions and subsidies for homebuyers. This has contributed to improving the atmosphere for real estate investment.

Integrated lifestyle

The idea of integrated living is quickly taking on in the residential sector as house buyers have begun to favor developments with state-of-the-art amenities, including office buildings, parks, schools, hospitals, and shopping centers with multiplexes.

Home purchasers now seek to live a more tranquil, independent, and secure existence. Therefore this tendency has accelerated.

The demand for township living is increasing positively and is certain to continue in 2024. Township living meets all inhabitants' social, civic, and recreational demands and is outfitted with multi-layer security systems.

Real estate investors will invest largely in the suburban zones in 2024. Due to the creation of IT special economic zones nearby, the existence of reputable educational institutions, and the availability of other basic necessities, these micro-markets have experienced a constant influx of migrants from outside the city.

Due to better commuter connections, these suburbs have decent access to the rest of the city and have become a popular choice for house owners.

Micro-markets are in high demand as a destination for real estate due to the availability of properties at reasonable prices, compared to those of the metropolises, while yet being conveniently close to all important facilities.

Real estate as a potential investment

Home ownership as a long-term investment strategy is more appealing than ever. There was a spike in second-home purchases in 2023. People began to understand the advantages of real estate investing and began to view it as a solid and safe form of investment.

This year will see a multi-fold growth in real estate investments since the real estate market is less volatile than other investment markets and delivers higher returns.

Other factors

In India, where property purchasers have begun to choose independent residences over flats as lifestyles have changed, the individual villa category has grown significantly. This new trend is a result of the greater-than-ever demand for low-density living. Due to several causes, such as capital growth and rising demand for open space, potential homeowners increasingly are choosing to live in single-family homes rather than apartment complexes, increasing the demand for plotted developments in the outskirts of the main cities.

Due to the rising demand, more organized developers will be able to enter the plotted development space. The above factors are catalysts towards driving the growth of real estate in India. Cities like Mumbai, Delhi, Bengaluru, Kolkata are growing quickly with a zestful professional class and a well-developed corporate ecosystem.

The ever-increasing co-working segment has also brought more focus on commercial real estate in India, and it will only further thrive in the coming years. The home buyer’s preferences are evolving.

They are consciously looking for smart flexi-homes in verdant green spaces, and this has driven two segments of real estate– peripheral suburbs and self-sustained townships.

The future looks promising for real estate players, specifically for those who have diversified their portfolios and have the expertise to add value and capitalize on opportunities in both good and challenging times.