India Residential Real Estate Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

India Residential Real Estate Market Trends and Insights

Surging Demand from IT/ITeS Workforce Concentrations in Bengaluru & Hyderabad Driving Mid-segment Sales

Technology employment hubs have triggered localized demand surges that extend into suburban corridors of Bengaluru and Hyderabad. Hybrid work policies reinforce appetite for mid-segment apartments with home-office space, evidenced by a 4% rise in Bengaluru housing sales during H1 2024. Developers such as Prestige Group have responded with multi-tower launches in peripheral zones that offer improved amenities. Supply chain partners benefit from predictable volume pipelines, while municipal authorities accelerate infrastructure upgrades to sustain commuter flows. Continued momentum relies on persistent IT hiring and stable remote-working practices that keep mid-segment absorption elevated in the India residential real estate market.

Expedited Approvals under PMAY-U and SWAMIH Fund Accelerating Stalled Affordable Housing Projects

Government support has unlocked 90.25 lakh completed homes as of January 2025 and extended the scheme deadline to December 2025, aided by SWAMIH Fund financing that registered more than 6,500 apartments in Greater Noida^{[2]Manoj Joshi, “PMAY-U Progress Dashboard 2025,” Ministry of Housing & Urban Affairs, mohua.gov.in}. Combined with PMAY-U 2.0’s Rs 10 lakh crore budget, these approvals shorten construction cycles and restore buyer confidence. Developers secure faster cash inflows, allowing rotation of capital into new phases. States that digitize permit workflows gain early household relocations, raising urban service demand and reinforcing property tax bases. The India residential real estate market therefore absorbs affordable units without re-introducing earlier execution risks.

Rapid Household Nuclearization in Urban India Increasing Unit Absorption per 1,000 People

City households are fragmenting into nuclear families that favor 2-3 BHK apartments. Sales across top eight metros reached an 11-year high of 1.73 lakh units in H1 2024, underscoring the demographic pivot. Developers refine apartment layouts to maximize natural light and storage within compact footprints. Mortgage lenders enlarge ticket-size bands that match salaried professional incomes, sustaining monthly installment affordability. This demographic driver has a multi-decade runway, ensuring that the India residential real estate market retains steady baseline demand even when cyclical factors soften.

Escalating Interest from NRIs Leveraging Rupee Depreciation to Acquire Premium Homes in Metros

Non-resident Indians have raised bookings for properties priced above Rs 5 crore, motivated by favorable exchange rates and long-term asset diversification. Luxury launches incorporate and market global quality benchmarks such as LEED certified materials and bespoke concierge services. Developers host virtual walk-throughs timed to overseas hours, shrinking decision cycles. Foreign currency inflows offset domestic funding gaps, adding depth to the India residential real estate market.

Persistently Elevated Input Costs Compressing Developer Margins and Project Launches

Steel and cement price stickiness has squeezed gross margins, forcing developers to widen premium inventory or slow affordable launches^{[3]Nandita Agarwal, “Input Cost Inflation and Project Viability,” National Real Estate Development Council (NAREDCO) White Paper, naredco.org.in}. Affordable supply share fell to 18% in 2023 as material escalation outpaced consumer price sensitivity. Builders experiment with procurement cooperatives and contract indexation clauses to tame volatility. The India residential real estate market will reclaim lost momentum when commodity costs align with pre-COVID trends.

Slow Insolvency Resolution for Stressed Projects Prolonging Supply Overhang in NCR

Nearly 2.4 lakh delayed units constrain fresh launches because buyers hesitate to commit where legacy risks remain. Court-monitored completions such as NBCC’s Amrapali mandate for 22,000 flats aim to close the confidence gap. Progress depends on timely disbursal of resolution funds and municipal cooperation to release clearances. Faster clear-offs would free latent pent-up demand and normalize inventory levels in the India residential real estate market.

Segment Analysis

By Property Type: Apartment Dominance Drives Urban Density

Apartments & condominiums accounted for 64.2% of India residential real estate market share in 2024. High-rise formats fit land-scarce metros and enable shared utility costs. Developers capture scale economics through repeatable design templates, maintaining price points attractive to nuclear families. Villas & landed houses, although a smaller base, are forecast to rise at 10.30% CAGR, lifting India residential real estate market size for this segment. Post-pandemic preferences for private gardens and flexible indoor areas underpin demand. The hybrid work model legitimizes longer commutes, allowing villa buyers to choose peripheral plots where larger floorplates align with aspirational living.

The villa uptrend has prompted integrated townships that combine apartment towers, plotted developments, and recreational amenities. Such mixed-use formats diversify revenue and hedge project risk. For apartments, smart-home features and EV-charging infrastructure increasingly appear as standard, reinforcing consumer perceptions of value. In both cases, differentiated amenity packages remain the decisive factor that converts site visits to bookings, sustaining depth in the India residential real estate market.

By Price Band: Mid-Market Stability Anchors Growth

The mid-market tier held 48% of India residential real estate market size in 2024. Ticket sizes between Rs 40 lakh and Rs 1 crore align with white-collar income growth and favorable loan-to-value norms. This stability helps lenders keep delinquency rates low and encourages developers to prioritize volume. Affordable housing, projected to grow at 10.19% CAGR, benefits from PMAY-U subsidies and low-cost funding, yet margin stress persists because price ceilings tighten profit windows.

Listed developers have shifted toward premium and luxury projects where margin buffers absorb commodity shocks. Luxury bookings rose 49% year on year, aided by NRI inflows. Nonetheless, policy clarity on credit-linked subsidies and input tax rebates could re-accelerate affordable launches. Balanced execution across tiers keeps the India residential real estate market resilient across business cycles.

By Business Model: Sales Dominance Reflects Ownership Preferences

Sales transactions formed 88% of overall activity in 2024. Cultural preferences for tangible assets and tax deductions on mortgage interest maintain this skew. The rental sub-market, forecast to grow at 10.52% CAGR, gains from urban workforce mobility. Institutional landlords offer managed apartments with concierge and maintenance, attracting millennials and expatriates. Higher rental yields in select micro-markets provide investors a predictable cash flow alternative to traditional buy-and-sell strategies.

Digital lease management platforms enhance transparency and dispute resolution, encouraging participation by individual owners. Over time, increasing rental stock will moderate vacancy swings and deepen liquidity, improving the investment proposition across the India residential real estate industry.

By Mode of Sale: Primary Market Leadership Signals New Supply Confidence

Primary launches comprised 64% of activity in 2024, reflecting confidence in project execution post-RERA. Developers use milestone-linked payment plans to reduce buyer carrying costs. Better escrow monitoring ensures construction funds reach on-site deployment, improving trust. Secondary transactions, expected to grow at 10.42% CAGR, benefit from maturing housing stock and organized brokerage platforms that standardize documentation.

Healthy absorption of new projects and active resale liquidity create a virtuous cycle, attracting capital from domestic and overseas investors. The India residential real estate market therefore enjoys diversified transaction pathways that cushion cyclical demand swings.

Geography Analysis

Western India retained 28% of India residential real estate market size in 2024, anchored by Mumbai Metropolitan Region and Pune. Mumbai registered 1.41 lakh property deeds in 2024, with western suburbs accounting for 53% of December registrations. Upcoming infrastructure projects such as the Navi Mumbai International Airport and east-west metro corridors improve multi-node connectivity and unlock previously under-served precincts. Redevelopment of large precincts like Dharavi, where 43% of 108.99 hectares is earmarked for free sale, adds transformative inventory that renews investor attention.

South India benefits from Bengaluru’s technology corridor and Chennai’s industrial diversification. Hybrid work policies enlarge feasible residential catchments around Outer Ring Road and Whitefield. Hyderabad’s life-sciences cluster is another magnet for skilled migrants, spurring township launches by national developers. NRI remittances favor south-based projects due to perceived governance quality and historical rental yield consistency. These factors keep absorption velocity high and reduce unsold inventory in the India residential real estate market.

East India leads in growth with a 10.58% forecast CAGR through 2030. Kolkata’s average prices range between Rs 2,503 and Rs 8,242 per square foot, offering affordability relative to coastal metros. Upgrades to suburban rail and arterial roads shorten commuting time, boosting end-user sentiment. Simultaneously, Central India, typified by Indore, witnesses price escalations as commercial footprints expand. Godrej Properties’ Rs 200 crore land acquisition in Indore signals institutional confidence. Tier-2 corridors thus emerge as new growth poles, distributing demand more evenly across the India residential real estate market.