Residential Real Estate Transactions - India

India's Residential Real Estate Transactions market market is projected to reach a transaction value of US$263.30bn in 2024.
It is expected to exhibit a compound annual growth rate (CAGR 2024-2029) of 3.24%, leading to a market volume of US$308.80bn by 2029.
The Indian residential real estate market is experiencing a surge in demand due to favorable government policies and increasing urbanization.

Definition:

Residential real estate transactions refer to the buying, selling, or transfer of ownership of residential properties such as single-family homes, condominiums, townhouses, and apartments. These transactions involve a number of steps and parties, including buyers, sellers, real estate agents, attorneys, lenders, and title companies.

Additional information:

The KPIs covered in this market are the real estate transactions revenue and the average revenue transaction value.

Overall revenue generated by residential real estate transactions

Commercial real estate transactions
Revenue of real estate agencies
Revenue of construction companies

The Residential Real Estate Transactions market in India is experiencing significant growth due to various factors.

Customer preferences: Customers in India have a strong preference for investing in residential real estate. This is driven by the cultural belief that owning a home is a symbol of stability and success. Additionally, residential properties are seen as a safe investment option, providing a steady source of rental income and potential capital appreciation.

Trends in the market: One of the key trends in the Indian residential real estate market is the increasing demand for affordable housing. With a growing population and urbanization, there is a need for housing options that are affordable for the middle and lower-income segments. Developers are focusing on creating affordable housing projects to cater to this demand. Another trend in the market is the rise of smart homes. With advancements in technology, customers are looking for homes that are equipped with smart features such as home automation systems, energy-efficient appliances, and security systems. Developers are incorporating these features into their projects to attract buyers who value convenience and technology.

Local special circumstances: India has a large young population, with a significant portion of the population belonging to the millennial generation. This demographic group has different preferences and priorities compared to previous generations. They are more inclined towards urban living, prefer modern amenities, and are open to renting rather than buying a property. Developers are adapting to these preferences by focusing on creating residential projects in urban areas with modern amenities and offering rental options.

Underlying macroeconomic factors: The Indian economy has been growing steadily, which has positively impacted the residential real estate market. Increasing income levels, favorable government policies, and ease of financing options have made it easier for individuals to invest in residential properties. Additionally, the government's initiatives such as "Housing for All" and "Smart Cities Mission" have provided a boost to the real estate sector. In conclusion, the Residential Real Estate Transactions market in India is witnessing growth due to customer preferences for residential properties, trends such as affordable housing and smart homes, local special circumstances like the preferences of the young population, and underlying macroeconomic factors such as economic growth and government initiatives. These factors are driving the development and expansion of the residential real estate market in India.

Data coverage:

Figures are based on total and average revenue of residential real estate transactions (sales).

Modeling approach:

Market size is determined by a bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

The global housing market has slowed amid high inflation and soaring borrowing costs. Homeownership is one of the most universal signs of success and prosperity: It serves both as a source of stable and secure housing and a long-term investment. After the global financial crisis, property prices rose in many countries and especially in advanced economies. For more than a decade after that, the housing market has been on an upward trajectory, culminating in the housing boom during the COVID-19 pandemic. However, housing shortages in highly competitive markets, the recent rapid house price growth, soaring inflation, and consequently, some of the highest mortgage interest rates recorded in the past 10 years have led to the market cooling.

Soaring inflation and aggressive mortgage interest rate hikes cooled the European housing market after a nearly decade-long period of growth. Since 2015, house prices in the European Union have grown by about 50 percent. When inflation in Europe started to rise at an alarming rate in 2021, the European Central Bank increased interest rates, resulting in substantially higher mortgage interest rates and a decline in homebuying. But how important is homeownership for Europeans?

Generally considered the third key pillar of the food, clothing, and shelter trinity popularized in India over generations, owning a home is still prioritized as a measure of financial security by a vast majority of the Indian population. The COVID-19 pandemic with its successive lockdowns and restrictions to stay within the confines of one’s home, further reinforced this vision. India’s growing urban population, rising household incomes, and decade-long low-interest rates have been propelling the demand for residential units, driving up the sales volume. Even though the residential real estate sector was severely hit in 2020, it marked a strong recovery in consecutive years, crossing pre-COVID sales figures.

Residential Real Estate Transactions - India

Volume

Analyst Opinion

Transaction Value

Real Estate Type

Living Space

Methodology

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