India Real Estate Market to Reach USD 1.04 Trillion by 2030, Driven by Strong Residential and Commercial Demand

Mordor Intelligence has published a new report on the "India Real Estate Market" offering a comprehensive analysis of trends, growth drivers, and future projections

The real estate market in India is undergoing rapid expansion, with demand rising across both residential and commercial segments. According to recent estimates, the real estate market size in India is valued at USD 0.66 trillion in 2025 and is projected to reach USD 1.04 trillion by 2030, recording a CAGR of 9.51% during the forecast period. This strong momentum is underpinned by urbanization, rising disposable incomes, policy reforms, and infrastructure development that are shaping the future of the industry.

The real estate industry in India holds a critical position in the nation's economic framework, contributing significantly to GDP and employment. With large-scale investments in affordable housing, commercial hubs, and retail spaces, the market continues to attract both domestic and international investors. As cities expand and tier-2 and tier-3 urban centers emerge as new growth corridors, the market is experiencing sustained activity across multiple property types.

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Key Trends in the India Real Estate Market

Rising Demand for Residential Property

The housing sector continues to dominate the real estate sector in India, with rising demand for affordable and mid-income housing projects. Government initiatives such as Pradhan Mantri Awas Yojana (PMAY) and favorable lending policies are boosting homeownership. Millennials and young professionals are increasingly seeking urban living spaces with modern amenities, while luxury housing also records steady growth among high-net-worth individuals.

Expansion of Commercial Office Spaces

India's position as a global outsourcing hub has driven a surge in demand for commercial office spaces, particularly in Bengaluru, Hyderabad, Pune, and Gurugram. The post-pandemic hybrid work model has reshaped leasing patterns, but IT, e-commerce, and global capability centers continue to fuel demand. Flexible workspaces and co-working facilities are also gaining traction, catering to start-ups and large enterprises alike.

Growth in Retail Real Estate

The rising consumer base, coupled with the rapid expansion of organized retail and e-commerce, is driving growth in retail real estate. Malls, high-street outlets, and omni-channel retail formats are being developed across metro cities and tier-2 hubs. Developers are increasingly focusing on mixed-use developments that integrate retail, entertainment, and lifestyle services to attract footfalls.

Hospitality and Tourism Infrastructure

The hospitality segment is recovering strongly, supported by domestic tourism and business travel. Leading hotel chains are expanding their footprints across metros and emerging tourist destinations. With India hosting global events and an increasing influx of foreign tourists, hospitality-focused real estate investments are set to rise further.

Industrial and Logistics Growth

The logistics and warehousing sector is emerging as one of the fastest-growing components of the India real estate market. Expansion of e-commerce, the growth of 3PL (third-party logistics), and government-led infrastructure projects such as dedicated freight corridors are driving investments in industrial real estate. Warehouses, distribution centers, and cold storage facilities are in high demand, particularly in Delhi NCR, Mumbai, and Bengaluru.

Urbanization and Infrastructure Push

Urbanization continues to reshape the real estate market in India, with significant emphasis on metro expansion, expressways, and smart city projects. Infrastructure upgrades such as airports, metro rail, and highways are fueling real estate activity in adjoining regions, expanding the scope of investment and development.

Steady Real Estate Growth Rate in India

The real estate growth rate in India remains steady due to consistent investor interest and strong end-user demand. The sector is also seeing increased foreign direct investment (FDI), making it one of the top industries for global investors seeking long-term opportunities.

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Market Segmentation of the India Real Estate Market

The Indian real estate market can be segmented by property type and by key cities:

By Property Type

Residential

Office

Retail

Hospitality

Industrial

By Key Cities

Mumbai Metropolitan Region (MMR)

Delhi NCR

Pune

Chennai

Hyderabad

Bengaluru

Rest of India

The segmentation highlights the diverse structure of the real estate sector in India, where residential continues to dominate, but office and industrial real estate are emerging as growth drivers. Metro cities such as Mumbai and Delhi NCR remain hotspots, while Bengaluru and Hyderabad are consolidating their position as technology-driven real estate hubs.

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Key Players in the India Real Estate Industry

Several leading developers are shaping the real estate industry in India, contributing to its expansion through innovative projects and large-scale developments.

Godrej Properties: A key player with a wide portfolio of residential and commercial projects across multiple cities, known for its focus on sustainability and modern design.

Prestige Estates Projects Ltd.: Prominent in southern India, particularly Bengaluru, with diversified interests spanning residential, commercial, retail, and hospitality.

Oberoi Realty Limited: Strong presence in Mumbai, with luxury residential developments, office spaces, and retail projects.

DLF: One of the largest developers in India with a significant footprint in Delhi NCR, specializing in residential, commercial, and retail real estate.

Sobha Limited: Known for premium housing and commercial developments, with a focus on quality construction and integrated township projects.

These players are actively engaged in expanding their footprints, adopting sustainable practices, and leveraging strong demand from both end-users and institutional investors. Their projects contribute to the growth and maturity of the India real estate market, reinforcing the sector's importance in the national economy.

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Conclusion

The real estate market in India is positioned for strong growth, with steady demand across residential, office, retail, hospitality, and industrial sectors. Rapid urbanization, policy support, infrastructure projects, and the rising aspirations of India's growing middle class are fueling momentum. Major cities continue to attract large-scale investments, while emerging urban centers are providing new avenues of expansion.

With a balanced mix of housing, commercial, and industrial activity, the market stands as one of the most dynamic segments of the economy. The sector's resilience, backed by steady demand and investor confidence, ensures that the real estate sector in India remains a key contributor to long-term economic growth and development.

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