New Delhi: India’s real estate sector is poised for exponential growth, expected to nearly double from ₹40 lakh crore in 2023 to ₹83 lakh crore by 2030, according to a report released by CareEdge Ratings. The sector, which contributed 7.3% to India’s GDP in 2023, is projected to account for 13% of the country’s economic output by the end of the decade.
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Key growth drivers include rapid urbanisation, rising household incomes, and proactive government initiatives such as Housing for All and the implementation of the Real Estate Regulatory Authority (RERA).
Commercial Real Estate Bounces Back
The commercial real estate segment has shown a strong recovery, with office leasing activity reaching 71.9 million square feet in 2024. This resurgence is being led by demand from the IT sector, banking and financial services (BFSI), and multinational corporations (MNCs).
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Bengaluru, Delhi-NCR, and Mumbai continue to lead the market, while Hyderabad and Pune are quickly emerging as major hubs. The rise of Global Capability Centres (GCCs), hybrid work models, and an increased preference for coworking spaces have significantly contributed to this growth.
Interior Fit-Out Market on the Rise
A key contributor to the commercial real estate boom is the interior fit-out market, which is projected to grow from ₹277 billion in 2023 to ₹805 billion by 2030, at an impressive CAGR of 16.5%. Emerging trends such as green fit-outs, tech-enabled designs, and employee-centric layouts are shaping modern Indian workspaces.
Urban Population to Fuel Demand
India’s urban population is expected to reach 600 million by 2030, further driving the demand for customised and modernised workspaces, especially in Tier 1 and Tier 2 cities.
Tanvi Shah, Director and Head of CareEdge Advisory and Research, noted, “The office fit-out sector is expected to grow at a CAGR of 16% over the next five years, driven by MNCs and high office space absorption in IT, BFSI, and e-commerce sectors.”
The report also highlights the role of sustainability, smart city support, and employee-focused design as critical elements redefining the future of real estate in India.
With its strong growth trajectory and evolving trends, India’s real estate sector is set to become a major pillar of economic development in the years to come.
