The Indian real estate industry is set to undergo considerable changes during the next five years. Accurately anticipating variations in movements, price dynamics, and market outlook requires a thorough grasp of existing patterns. Important economic variables, such as employment rates and GDP growth, have a significant effect on land development patterns. Concurrently, continuing government programmes like the Pradhan Mantri Awas Yojana (PMAY) and the Pradhan Mantri Awas Yojana-Gramin (PMAY-G) continue, while Finance Minister Nirmala Sitharaman introduced a scheme in the 2024 interim budget to assist middle-class residents. As a result, these housing programmes have a considerable influence on supply, demand dynamics, and investor confidence, influencing the trajectory of the housing market.

India’s real estate market has grown rapidly in recent years, and estimates for the next five years imply that this trend will continue. It is projected that demand for both residential and commercial real estate will rise, particularly in the mid-range and affordable categories. Furthermore, there is a lot of trust in the commercial real estate sector, notably in the office space market, which is expected to recover significantly. According to JLL research, the office sector is predicted to grow by 20-22% annually in 2024. As a result, developers are expanding their services, with the assistance of real estate consultants, to appeal to different income groups. Simultaneously, demand for commercial premises in key metropolitan hubs continues to rise, driven primarily by industrial real estate requirements.

Furthermore, urbanization, along with substantially lower property costs, is driving demand for affordable housing in Tier 2 and 3 cities. Initiatives like “Housing for All” is expected to increase housing affordability even further. The rental market will expand rapidly in line with the country’s rising rate of urbanization, and as a result of this trend, many employees now opt to rent residences. However, chronic obstacles like as land acquisition barriers and regulatory complications exist, despite attempts such as the Real Estate Regulation Act (RERA) to ameliorate these challenges and promote effective sectoral regulation.

According to the India Brand Equity Foundation (IBEF), India’s economy is expected to grow dramatically by 2029, with the real estate industry expanding from USD 0.33 trillion in 2024 to USD 1.04 trillion. This growth trajectory is expected to sustain a Compound Annual Growth Rate (CAGR) of 25.60% for the projection period (2024-2029). The real estate business is expected to contribute significantly to India’s GDP during the next five years, with estimations of 13%. By 2030, India’s GDP is expected to rank third in the world, with the real estate sector valued at USD 1 trillion and growing at a CAGR of 13%. However, several challenges emerge in the real estate sector, including the potential impact of interest rate fluctuations on affordability and demand, global economic uncertainties dampening investment sentiment, and an oversupply of properties in certain areas leading to lower prices. Successful execution of government initiatives remains pivotal for sectoral success. Additionally, regional disparities persist, with Tier 1 and Tier 2 cities exhibiting promising growth trajectories. The adoption of sustainable building practices is gaining traction owing to their environmental advantages. Thorough research is imperative for comprehending each project’s unique characteristics, potential, and future prospects.
In 2024, the Indian real estate sector begins a transformative journey and The Guardians, a real estate advisory firm, along with its skilled team, advises a developer client to research and analyse the real estate market for the coming years. It is anticipated that in the next five years the market is set to grow significantly and the market is forecasted to hit $1 trillion by 2030, growing at a rate of 13% annually. To gain more insights into the property predictions, we encourage you to visit The Guardians’ website, the guardians real estate advisory or get our real estate consultancy services from one of our experts.