India's Residential Real Estate Sector Booms: A Billion-Dollar Surge

India's residential real estate market hit a record high in FY23, with sales worth Rs. 3.47 lakh crore. Significant growth has been driven by factors such as urbanization, government initiatives, and sustainable projects. The market is projected to reach $1 trillion by 2030, largely due to the affordable housing scheme.

BANGALORE, KARNATAKA, INDIA – The residential property market in India saw unprecedented growth in FY23, with home sales reaching Rs. 3.47 lakh crore ($42 billion), marking a 48% year-on-year surge. The market size is set to increase to $1 trillion by 2030, fueled by an affordable housing scheme.

A report from Brickwork Ratings highlights that the Indian real estate sector expanded substantially, growing from $120 billion in 2017 to $477 billion by 2022. Factors like robust economic growth, heightened urbanization, governmental policy initiatives, and a shift towards green infrastructure are key drivers.

Significantly, the sector saw a marked rise in housing unit completions, going from 2.5 lakh units in 2018 to 4.35 lakh units in 2023. The Pradhan Mantri Awas Yojana (Urban) – Housing for All Mission has played a crucial role in this growth. This expansion is particularly impactful in India's top seven cities, including Mumbai and Delhi-NCR.

(With inputs from agencies.)