India’s Trillion-Dollar Growth Trajectory: Why Real Estate is Poised to Ride Economic Wave

New Delhi, July 24, 2025: India’s journey toward becoming the world’s third-largest economy by 2027 is a transformative moment that touches every sector. As industries expand and incomes rise, the ripple effect is unmistakable, and the real estate sector sits at the heart of this evolution. In many ways, the sector mirrors India’s ambition, acting as both a barometer and a beneficiary of its upward trajectory.

Per reports, the real estate industry, valued at around $320 billion, is projected to soar to $1 trillion by 2030. This remarkable growth will be fuelled by robust demand across residential, commercial, co-living, senior housing and rental asset segments, marking a defining chapter for India’s urban and economic landscape.

This growth isn’t confined to the metros alone; tier 2 and 3 cities, buoyed by better infrastructure and rising aspirations, are emerging as the next frontier. From urban professionals to first-time homeowners and expanding enterprises, each segment’s growth is bringing a real estate renaissance across the country.

Moreover, India’s infrastructure push is paving the way to reshape the real estate map. With initiatives like the Smart Cities Mission, AMRUT, Bharatmala and rapid Metro expansions, connectivity is no longer a metro-centric privilege.

These developments are unlocking new corridors of growth, turning once-overlooked areas into high-potential real estate hotspots. As expressways reduce commute times and transit-oriented development gains momentum, micro-markets are emerging where liveability, accessibility, and value converge.

“India’s march toward a $5 trillion economy is a signal to global and domestic investors that our country is ready for the next big leap in real estate. We’re seeing unprecedented interest across asset classes—from commercial hubs to plotted developments,” says Sumit Choudhary, VP, Sales, RISE Infraventures.

“This demand is smarter, experience-led and value-driven. Thus, with a robust policy push, capital inflow and economic optimism, we believe real estate will continue becoming the engine of growth and stability in the new India.”

Besides, as India’s economy expands across services, IT, manufacturing and a thriving start-up ecosystem, job creation is fuelling a parallel surge in housing and commercial demand. From young professionals seeking aspirational homes to families prioritising secure, well-connected communities, the appetite for mid-income, premium and gated residences, especially in Delhi-NCR, which is growing stronger than ever.

Per the Knight Frank data, homes priced above INR 2 crore now account for 57 per cent of all residential units sold in NCR, up from 43 per cent in the same period last year. This shift indicates growing demand from wealthy Indian buyers, NRIs and family offices for large-format homes in well-connected, amenity-rich locations.

Simultaneously, rising consumerism is reshaping the retail and office landscape. The data showed that Delhi NCR’s commercial office market reached an all-time high leasing volume of 7.2 min sq ft in the January-June 2025 period, marking a 27 per cent YoY increase.

Gurugram continued to dominate the region’s real estate narrative in H1 2025 in both segments. On the commercial side, it maintained its status as NCR’s prime office destination. In the housing segment, it accounted for 51 per cent of the region’s total residential sales and 55 per cent of new launches. Hence, developers are responding with experience-led, hybrid spaces that reflect the evolving urban lifestyle.

“The linkage between economic expansion and real estate is direct and immediate. As businesses grow and employment surges, we’re witnessing an uptick in both residential and commercial demand. We’ve seen how corporate leasing, especially in emerging corporate hubs like Gurugram, has bounced back strongly,” says Ashok Singh Jaunapuria, MD and CEO, SS Group.

“Simultaneously, the new-age homebuyer seeks aspirational living, reflecting lifestyle upgrades. With India’s economic rise, the expectations from real estate will evolve, and as developers, we are aligned to this changing appetite.”

Therefore, the real estate sector stands at a defining crossroads where economic acceleration, transformative policies, world-class infrastructure and rising consumer aspirations intersect. As the country claims its place on the global economic stage, the built environment must rise to meet new expectations—smarter cities, inclusive housing and resilient commercial spaces.