Trends Shaping India Real Estate Market

Introduction:

India’s real estate market is entering a new phase of structured growth, driven by a powerful confluence of factors. The real estate market size in India was valued at approximately USD 482 Billion in 2024, is being reshaped by robust residential demand, the expansion of commercial spaces, and increasing institutional investment. This momentum is fueled by a strong focus on affordable and mid-income housing, the formalization of the developer ecosystem, and the rising integration of digital platforms throughout the entire project lifecycle. As demand builds in both metropolitan and Tier-II cities, India’s real estate sector is evolving into a more transparent and attractive environment for both end-users and investors.

Key Industry Trends:

Residential Demand Recalibrating

A shift in buyer preferences toward larger apartments, gated communities, and township formats has intensified since 2023, which in turn, drives the real estate industry market size in India. Demand is especially strong in mid-income and affordable housing across metropolitan outskirts and Tier-II cities. Developers are tailoring launches based on income demographics and commuting corridors. For instance, in September 2024, Wave Group announced its plans to launch approximately 9,000 flats in its 4,200-acre Wave City township in Ghaziabad, aiming for 7 million square feet of housing.

Consolidation and Grade A Focus

Developers with strong balance sheets and transparent practices are gaining ground. Buyers and institutional investors alike are prioritizing projects from Grade A players due to delays, title issues, and liquidity risks associated with smaller builders. This reflects a key trend of real estate market in India—greater consolidation around trusted, financially stable developers. For instance, in March 2025, DLF announced its plans for INR 74,000 crore in sales from new housing projects, primarily focusing on luxury segments totaling 26 million square feet. The company plans to invest INR 20,000 crore in commercial real estate, including Grade A office spaces and retail developments, while maintaining a 93% occupancy rate in existing assets. Consolidation is particularly evident in the National Capital Region (NCR) and Mumbai Metropolitan Region (MMR).

Flex-Space and Hybrid Working Models

Commercial leasing is now driven by flexibility. IT/ITeS, BFSI, and consulting firms are anchoring space in high-density office corridors. Bengaluru, Hyderabad, Pune, and Chennai are preferred for built-to-suit office parks, while Mumbai and NCR see demand for flex-leases and managed spaces, thereby driving the real estate market in India.

Rise in Urban Logistics and Warehousing

The logistics segment is benefiting from high e-commerce penetration and policy interventions such as the PM Gati Shakti Plan. Tier-I and Tier-II city peripheries are becoming logistics hotbeds, with rising interest in Grade A warehousing parks and plug-and-play facilities.

ESG, Compliance, and Green Construction

Green building certifications and energy-efficient designs are no longer peripheral. As highlighted in the latest real estate market analysis India, developers are now aligning new launches with ESG benchmarks to secure investor confidence and regulatory approvals. Materials innovation and on-site sustainability tracking are becoming standard.

Digital Acceleration

Digitization of property sales, leasing, documentation, and financing continues to rise. Platforms offering 360-degree virtual tours, e-KYC, instant home loan eligibility checks, and e-agreements are compressing transaction timelines and reducing customer drop-offs.

Market Segmentation and Regional Insights:

Property:

• Residential

In 2024, the residential segment dominated the real estate market with a 78.8% share. Urbanization, income growth, and government schemes like PMAY continue to fuel demand. From affordable housing to gated communities, the segment spans across buyer profiles. Tier 1 and Tier 2 cities are key hotspots, backed by infrastructure upgrades and employment generation.

• Commercial

Commercial real estate is supported by rising demand for office space, retail outlets, and co-working hubs in metros and emerging cities. IT/ITeS, BFSI, and startups drive leasing activity. Grade A office demand, coupled with growing interest in retail and hospitality assets, is boosting investor focus in high-growth urban pockets.

• Industrial

The industrial segment is growing steadily, fueled by warehousing, logistics hubs, and manufacturing zones. Government infrastructure initiatives and rising e-commerce volumes are driving land acquisitions and developer interest. Industrial corridors, especially near ports and highways, are becoming investment zones for domestic and foreign developers focusing on large-scale asset creation.

• Land

The land segment includes residential plots, commercial parcels, and investment-grade farmland. Its potential lies in long-term appreciation and development flexibility. Demand is strong in urban outskirts and highway-adjacent zones where plotting projects are gaining traction. Regulatory challenges remain, but land remains a speculative asset for high-net-worth individuals and developers.

Business:

• Sales

Sales accounted for 70.0% of the market in 2024, making it the primary revenue source for developers. High absorption rates in residential and commercial properties, supported by favorable loan terms and early booking discounts, continue to drive sales volume. It’s a key indicator of consumer confidence and project viability across cities.

• Rental

The rental segment is gaining traction, especially in commercial and residential leasing across metro areas. Urban migration, co-living trends, and startup culture are driving demand. Institutional interest is growing with REITs entering the leasing space. Although smaller in share, rentals provide recurring income and stability for property owners and investors.

Mode:

• Offline

Offline transactions dominated in 2024 with 84.2% market share. Indian consumers prefer site visits, face-to-face interactions, and local broker engagement when buying property. Physical presence ensures legal clarity, location familiarity, and negotiation ease. Offline channels remain dominant in Tier 2 and 3 cities, where digital literacy and trust in online platforms remain limited.

• Online

Online real estate platforms are growing, particularly in metros where users rely on virtual tours, price comparisons, and e-documentation. Millennials and NRIs are increasingly using digital tools to shortlist and invest. While still niche, online channels offer reach and speed, acting as key discovery platforms before buyers switch to offline for closure.

Regional Insights:

• West and Central India

West and Central India held over 32.0% market share in 2024, led by MMR, Pune, Ahmedabad, Indore, and Bhopal. MMR and Pune are hubs for both residential and commercial real estate, driven by employment, infrastructure, and connectivity. Smart city projects and metro expansions further support growth in cities across Gujarat and Madhya Pradesh.

• North India

North India, including NCR, Chandigarh, and Jaipur, shows rising demand in both housing and commercial segments. Infrastructure push through metro expansions and highways has supported plotted and apartment projects. NCR’s premium and affordable housing mix, combined with high rental yields, keeps investor interest intact in regions like Noida, Gurugram, and Ghaziabad.

• South India

South India continues to lead in commercial leasing and mid-income housing. Cities like Bengaluru, Hyderabad, and Chennai are driven by IT sector growth and cosmopolitan demand. High-quality developer presence, better compliance, and faster project approvals make southern cities attractive for both end-users and institutional investors, especially in tech-focused corridors.

• East India

East India, including Kolkata, Bhubaneswar, and Ranchi, is gradually emerging due to improved connectivity, better regulatory clarity, and affordable land availability. The region is seeing investments in affordable housing, retail, and logistics. Though slower than other zones, smart city projects and new town planning are fostering long-term market opportunities.

Leading Companies in the India Real Estate Market:

India’s real estate transformation is actively driven by a blend of listed developers and private players leading large-scale residential, commercial, and mixed-use developments.

Some of the market leaders and latest news on the real estate market in India includes:

• DLF Limited: Announced an INR 6,000 crore investment in Gurugram to develop 7.5 million sq ft of premium office and retail space under its Cyber City Developers arm, signaling major commercial expansion in mid-2025.
• Godrej Properties Limited (Godrej Industries Limited): In May 2025, acquired 14 land parcels during FY 2024–25 across major cities with projected GDV of INR 26,500 crore.
• Prestige Estates Projects Limited: In June 2025, announced plans to launch residential projects worth INR 50,000 crore across major cities, including Delhi-NCR, Mumbai, and Chennai, in FY26. Key projects include luxury developments in Noida and Banjara Hills, aiming to cater to diverse market segments.
• Oberoi Realty Limited: Announced its plans to debut in Gurugram's luxury market with a high-end project inspired by Three Sixty West. The development will offer apartments from 5,000 to 8,000 sq ft and aims to capitalize on the region's growing demand.

Beyond the major players, several other developers, including Brigade Enterprises Limited, Experion Developers Private Limited, Jaypee Infratech Ltd. (Jaiprakash Associates Limited), Lodha Group, Merlin Group, PNC Infratech Limited, SOBHA Limited, Sunteck Realty Limited, etc. are also actively shaping India’s real estate landscape. These developers are at the forefront of India’s real estate growth, responding to buyer needs with better design, governance, digital tools, and location strategies that align with emerging urban and regulatory trends. Regulatory reforms like RERA have influenced the market share of real estate companies in India by favoring compliant players.

Market Size During the Forecast 2025-2033:

• India Real Estate Market

India’s real estate industry is projected to reach USD 1,184 Billion by 2033, registering a CAGR of 10.50% during 2025–2033. Growth will be led by residential, commercial, and logistics segments. REITs, institutional funds, and regulatory clarity will accelerate investment inflows and asset formalization.

• India Commercial Real Estate Market

The market is set to grow from USD 49.80 Billion in 2024 to USD 253.32 Billion by 2033, at a CAGR of 19.81%. Strong leasing in tech parks and high-rises, plus REIT-backed Grade A developments, are pushing this segment forward across metro and Tier-I business districts.

• India Loan Against Property (LAP) Market

Estimated at USD 758.00 Billion in 2024, India’s LAP market is projected to hit USD 2,369.36 Billion by 2033, growing at 13.50% CAGR. MSMEs and self-employed borrowers are driving demand, while NBFCs and digital lenders boost disbursal in Tier-II and III locations through asset-backed financing.

• India Commercial Property Insurance Market

Starting at USD 9.97 Billion in 2024, this market will reach USD 21.56 Billion by 2033, exhibiting a CAGR of 8.95% during 2025-2033. Developers and asset owners are increasingly insuring high-value commercial spaces, driving demand for risk mitigation across fire, liability, and business continuity in multi-asset portfolios.

• India Rental Housing Market

India’s rental housing market will grow from USD 2.65 Billion in 2024 to USD 3.96 Billion by 2033, at a CAGR of 4.56%. The rise of co-living, workforce mobility, and state rental policies is enabling institutional participation, especially in metro catchments and student/young professional housing.

• India Housing Loan Market

Expected to grow from USD 329.88 Billion in 2024 to USD 773.80 Billion by 2033, with a CAGR of 8.90% during 2025-2033, the housing loan market benefits from fintech adoption, subsidy schemes like PMAY, and higher salaried participation. Focus remains on mid-ticket loans for affordable and mid-income housing segments.

• India Construction Safety Equipment Market

Valued at USD 858.40 Million in 2024, this market is forecast to reach USD 1,512.99 Million by 2033, at CAGR of 6.60%, during 2025-2033. Rising safety regulations, developer formalization, and large-scale infrastructure projects are boosting demand for certified PPE kits, digital monitoring, scaffolding, and fall-prevention systems.

Conclusion:

India’s real estate sector is positioned for sustained expansion, driven by robust residential demand, growing commercial infrastructure, and increasing participation from institutional investors. The shift toward formal development, green construction practices, and digital transaction models is reshaping the industry’s foundation. Tier I cities remain core growth hubs, while Tier II markets are gaining strategic importance. Developers are focusing on execution, compliance, and product diversification to meet evolving buyer expectations. With government support, rising urbanization, and enhanced financing access, the sector is entering a more transparent, organized, and investor-friendly phase that reflects its maturing role in the country’s economic development.

How IMARC Group is Guiding Innovation in the India Real Estate Market:

IMARC Group empowers stakeholders across the India real estate sector with strategic intelligence to navigate a dynamic and rapidly evolving environment. Our services support innovation, opportunity recognition, and risk mitigation in this increasingly complex market.

• Market Insights: We analyze key trends such as the surge in residential demand, the expansion of commercial spaces, technological integration in "PropTech," and the growing focus on sustainable building practices.
• Strategic Forecasting: Our forecasts help clients anticipate future developments in residential and commercial market cycles, the impact of government policies like RERA, and the evolution of financing models.
• Competitive Intelligence: We track project launches, sales performance, land acquisition strategies, and the market shares of leading developers to help clients stay ahead of the competition.
• Policy and Regulatory Analysis: IMARC assesses the impact of regulatory frameworks and government initiatives on project planning, approvals, and market access, ensuring clients remain compliant and informed.
• Customized Consulting Solutions: We offer bespoke advisory on product development, geographic expansion strategies, and investment analysis to help clients capitalize on new opportunities.

IMARC Group continues to guide the evolution of the real estate market through actionable insights and forward-focused consulting. For detailed insights, data-driven forecasts, and strategic advice, see the complete report on the India Real Estate Market: https://www.imarcgroup.com/india-real-estate-market