Real Estate - India

India

The Real Estate market market in India is expected to reach a projected value of €41.59tn by 2024.
Among the various segments, Residential Real Estate holds the largest share, with a projected market volume of €35.96tn in 2024.
This segment is anticipated to grow at an annual rate of 2.45% from 2024 to 2029, resulting in a market volume of €46.94tn by 2029.
In comparison to other countries, United States is projected to generate the highest value in the Real Estate market market, with an estimated €121.2tn in 2024.
The real estate market in India is experiencing a surge in demand due to the growing urban population and increased investment opportunities.

Key regions: United States, China, Japan, Germany, United Kingdom

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Analyst Opinion

The Real Estate market in India has been experiencing significant growth and development in recent years.

Customer preferences: One of the key customer preferences in the Indian Real Estate market is the demand for affordable housing. With a large population and a growing middle class, there is a strong need for housing that is within the reach of the average Indian citizen. Additionally, customers in India also value properties that are well-connected to transportation networks and have access to basic amenities such as schools, hospitals, and shopping centers.

Trends in the market: One of the major trends in the Indian Real Estate market is the increasing popularity of co-working spaces. With the rise of startups and the gig economy, there has been a growing demand for flexible office spaces that can accommodate small businesses and freelancers. This trend has been particularly prominent in major cities like Mumbai and Bangalore, where the startup ecosystem is thriving. Another trend in the market is the rise of affordable housing projects. The government of India has launched various schemes and initiatives to promote affordable housing, such as the Pradhan Mantri Awas Yojana. These initiatives have incentivized developers to focus on building affordable homes, which has led to an increase in supply and affordability for buyers.

Local special circumstances: One of the unique aspects of the Indian Real Estate market is the prevalence of cash transactions. Many property transactions in India are still conducted in cash, which can lead to issues such as tax evasion and black money. However, the government has been taking steps to curb this practice, such as implementing the Goods and Services Tax (GST) and promoting digital payments.

Underlying macroeconomic factors: Several macroeconomic factors have contributed to the development of the Real Estate market in India. The country has been experiencing steady economic growth, which has led to an increase in disposable income and purchasing power. Additionally, the urbanization rate in India is also on the rise, with more people moving to cities in search of better job opportunities. This has created a demand for housing and commercial properties in urban areas. Furthermore, the government has implemented various policy reforms to attract foreign direct investment (FDI) in the Real Estate sector. These reforms, coupled with the introduction of Real Estate Investment Trusts (REITs), have made it easier for foreign investors to enter the Indian market and invest in properties. In conclusion, the Real Estate market in India is witnessing significant growth and development due to customer preferences for affordable housing and well-connected properties. The rise of co-working spaces and affordable housing projects are notable trends in the market. Special circumstances such as the prevalence of cash transactions and government efforts to promote digital payments are also shaping the market. Underlying macroeconomic factors such as economic growth, urbanization, and policy reforms are driving the growth of the Real Estate market in India.

Methodology

Data coverage:

Figures are based on value of residential and commercial real estate, average real estate value, residential estate transactions and leases.

Modeling approach / Market size:

Market sizes are determined by a combined Top-Down and Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use data from international organizations and industry associations. Next we use relevant key market indicators and data from country-specific associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.