Indian Real Estate Industry

India’s real estate sector is expected to expand to US$ 5.8 trillion by 2047, contributing 15.5% to the GDP from an existing share of 7.3%.

Advantage India

Robust
Demand

*According to Savills India, real estate demand for data centres is expected to increase by 15-18 million sq. ft. by 2025.​

*The demand for luxury homes in India, particularly those priced at Rs. 4 crore (US$ 0.5 million) and above, saw a remarkable surge in 2024, with sales rising by 53% across seven major cities. According to data from real estate consultancy firm CBRE, the total number of luxury housing units sold last year stood at 19,700.​

*Organized retail real estate stock is expected to increase by 28% to 82 million sq. ft. by 2023.​

*Luxury home demand in India remained strong in 2025, with sales of Rs. 4 crore (US$ 0.5 Million) and above rising nearly 28% YoY across seven major cities.

*In Q1 2025, 1,930 luxury homes were sold across India’s top seven cities — a 28% jump from the 1,510 units sold in the same period the previous year

Attractive
Opportunities

*The real estate sector shows promise with a projected 9.2% CAGR from 2023 to 2028. 2024 is expected to drive growth with urbanization, rental market expansion, and property price appreciation.​​

*Private market investor, Blackstone, which has significantly invested in the Indian real estate sector (worth Rs. 3.8 lakh crore (US$ 50 billion), is seeking to invest an additional Rs. 1.7 lakh crore (US$ 22 billion) by 2030.​

*ICRA projects a 6–9% rise in new launches in FY2026 (620–640 mn sq. ft). Home prices rose 13–15% in FY2025 and may increase another 3–5% in FY2026, signaling strong demand and developer pricing power.

Policy
Support

*Driven by increasing transparency and returns, there’s a surge in private investment in the sector.​​

*The Government has allowed FDI of up to 100% for townships and settlements development projects.​

*The Union Budget 2025-26 boosts homeowners with nil tax on two self-occupied properties (earlier one) and raises TDS threshold on rent from Rs. 2.4 lakh (US$ 2,769) to Rs. 6 lakh (US$ 6,924), driving property ownership demand.​

*In the Union Budget 2024-25, PM Awas Yojana Urban 2.0 will address housing needs for 1 crore urban poor and middle-class families with a Rs. 10 lakh crore (US$ 120.16 billion) investment.​

Increasing
Investments

*The new framework for Small and Medium Real Estate Investment Trusts (SM REITs) has been praised by the realtors' association CREDAI, stating that it will enhance the flow of funds into the Indian real estate market.​​

*According to Anarock Capital, Foreign private equity (PE) investments in Indian real estate reached approximately US$ 3.1 billion in FY25, marking a significant increase from US$ 2.6 billion in FY24.

*Panattoni is investing Rs. 900 crore million (US$ 104.4Million) to set up a 25-acre Grade-A logistics park in Hosur, Tamil Nadu, marking a major step in its expansion across India

Last updated: Aug, 2025

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