India’s Real Estate Boom, 2025

India’s Real Estate Boom, 2025

 

Why is real estate booming in India?

The Indian real estate is on fire, and here are stokes that add fuel to it. With a market size of USD 482 billion in 2024, it was expected to grow at a CAGR of 10.5% to come close to reaching USD 1.18 trillion by 2033. Urbanisation is a runaway train, gloriously only 28.5% urban in 2001, climbing up to an estimate of 40% by 2030. Housing will demand 93 million units by the year 2036. In support of this rise, 99 real estate deals worth USD 6.99 billion got underway in the FY 2025-26, further proving investor confidence.

So, what's all the rush about? Things like income rise, policy support, RERA, and PMAY, and the digitalisation of innovation, like fractional ownership, crossing a billion-dollar threshold, are created to make land investment easy and safe. India tops APAC in commercial leasing sentiment, spotlighting international interest.

Real Estate Business—An Overview

Real estate means land and anything built on or attached to such land—residential, commercial, industrial, or retail. It is a hybrid of asset ownership and services: property development, brokerage, leasing, management, and financing. The launch of RERA (2016-17) brought under its ambit 1.38 lakh projects and approximately 96,000 agents, listed and resolved an almost equal number of complaints, thereby spurring transparency and credibility in the field.

The sector touches upon construction, banking, materials, legal services, etc. Hence, GDP growth is becoming an essential multiplier, predicted to account for 1% of GDP by 2025.

Short-Term Benefits of Investing in Real Estate

Benefit	Description
Rental Income	Inflation-beating yields—rents +7–10% YoY, rising faster than inflation (~4.3%)
Capital Appreciation	Properties priced to rise ~6–7% annually
Tax & Loan Incentives	PMAY offers subsidies of ₹2.67 lakh, 3–6.5% interest relief on housing loans

Long-Term Benefits of Real Estate