Indian Real Estate Market to See Unprecedented Growth, Reaching $1 Trillion by 2030
India’s real estate market to touch $1 trillion by 2030,
The real estate sector is rapidly adopting smart technologies and sustainability-driven approaches. AI-powered amenities and environmentally-conscious construction are becoming standard in the industry, with smart homes now setting the benchmark.
The Indian real estate market is projected to catapult from $350 billion in 2023 to a staggering $1 trillion by 2030, driven by rapid urbanization, digital adoption, and innovative technological solutions, according to the AURUM PropTech report released at India PropTech Summit, 2024. With the urban population expected to reach 680 million by 2047, the market is witnessing a fundamental transformation that extends far beyond traditional real estate paradigms. This population growth necessitates 230 million additional housing units.
Bridging the Demand-supply gap with technology
The report further revealed that conducive regulations like Small and Medium Real Estate Investment Trusts (SM-REITs) are democratizing investments in real estate by allowing individual investors to participate in high-quality commercial assets. The regulation provides an opportunity to address financing of 32.8 Crore Square Feet SM-REITAble supply across the country.
Digitalization to dominate the future trends
An astounding 75% of homebuyers now rely on digital platforms, while 50% engage in virtual property tours, signaling profound technological disruption. The Indian real estate market is witnessing a surge in demand for luxury and branded housing, coupled with significant growth in Tier-II and Tier-III cities. This expansion is increasingly powered by a growing dependency on digital marketing strategies that leverage cutting-edge technological solutions. With annual real estate marketing expenditures reaching ₹38,000 crore, there is a clear and strategic shift towards allocating more resources to digital marketing channels.
The Rise of Tier-II and Tier-III Cities
India’s growing appetite for branded and luxury housing is extending beyond metropolitan cities to Tier-II and Tier-III hubs. With an estimated ₹38,000 crore spent annually on digital real estate marketing, the emphasis on these emerging markets is undeniable.
A Visionary Perspective
“The convergence of technology, shifting consumer behavior, and supportive regulations is creating an unparalleled opportunity for the real estate sector. Innovation is no longer optional; it’s the key to success.”
A $100 Billion Opportunity Awaits
With the growth of real estate rentals, distribution, and capital financing, PropTech innovations are creating a $100 billion opportunity. The India PropTech Summit 2024 served as a vibrant forum for industry leaders to explore these trends and foster collaborations to drive the future of real estate.
Key Highlights:
- Employment Generation: The real estate sector is the second-largest employer in India, following agriculture, contributing to 18% of the nation’s workforce.
- GDP contribution: The sector’s share of India’s GDP is anticipated to rise from the current 7.3% to 13% by 2030, showcasing its growing economic significance.
- Shift in Consumer Preferences: There is a noticeable shift towards luxury housing and premium amenities, indicating an evolving market driven by affluent buyers and urbanization.
Technology and Sustainability Shaping the Future:
- Smart Homes: The integration of smart technologies, including AI-powered amenities and energy-efficient solutions, is becoming a standard feature in new developments. This is further being driven by consumers’ growing demand for convenience and sustainability.
- Sustainability: The push towards environmentally conscious construction practices is evident, with developers incorporating green building techniques, such as rainwater harvesting, solar panels, and sustainable materials.
India’s real estate sector is undergoing rapid modernization, and the combination of technological innovations, improved infrastructure, and government support is poised to propel it to a $1 trillion market size by 2030. The emerging trends, state-wise growth, and adoption of sustainability will continue to shape this dynamic and promising sector.
