India’s residential real estate market is set to grow by 17% in FY25, according to a report by India Ratings and Research (Ind-Ra). The sector is witnessing strong demand, driven by economic growth, increasing urbanization, and favorable government policies. Homebuyers are showing greater interest in premium and mid-segment properties, leading to a surge in sales across major cities. Developers are also launching new projects to meet the rising demand, ensuring steady growth in the housing sector.
The report highlights that low home loan interest rates, stable property prices, and improved consumer sentiment are key factors contributing to this growth. Additionally, infrastructure development, expansion of metro networks, and improved connectivity in urban areas are making residential properties more attractive. With a growing middle class and increased disposable income, homeownership is becoming a priority for many Indians, further boosting the real estate market.
Ind-Ra’s analysis suggests that the demand for housing will remain strong, particularly in metro cities like Mumbai, Delhi-NCR, Bengaluru, and Hyderabad. The affordable housing segment is also expected to gain momentum as government initiatives and incentives encourage first-time buyers. Moreover, developers are focusing on sustainable and smart housing projects to align with changing consumer preferences.
Despite inflationary pressures and rising construction costs, the residential real estate market is expected to maintain a positive trajectory. The sector’s resilience, coupled with increasing digital adoption in property transactions, is further enhancing transparency and efficiency. As homebuyers seek better investment opportunities, real estate remains a preferred asset class.
With a projected 17% growth in FY25, the Indian residential real estate sector is poised for expansion, offering significant opportunities for investors, developers, and homebuyers. The evolving market dynamics indicate a promising future, making this a favorable time to invest in residential properties.
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