India’s residential real estate market is undergoing a transformative phase, with Millennials and Generation Z projected to account for 60% of new homebuyers by 2030, according to a year-end market report by JLL India, a global real estate services firm.
Key Findings from the JLL Report
- Rise in Urban Homeownership:
Urban homeownership is expected to increase from 65% in 2020 to 72% by 2025, driven by affordable financing options and the growing participation of younger demographics in the housing market. - Tier II and III Cities Leading Growth:
Smaller urban centers like Jaipur, Indore, and Kochi are emerging as pivotal growth hubs, contributing to more than 40% of new housing developments by 2025. - Economic Contribution:
The housing sector is projected to account for 13% of India’s GDP by 2025, reflecting its expanding role in the nation’s economy. By 2030, the sector is anticipated to evolve into a USD 1-trillion market.
Changing Buyer Preferences and Market Trends
- Sustainability Becomes Essential:
Green-certified buildings, which comprised 15% of residential projects in 2020, are expected to double to 30% by 2025. Certifications like LEED (Leadership in Energy and Environmental Design) are becoming a priority for developers as buyers increasingly value sustainable living. - Tech-Integrated and Smart Homes:
The demand for smart homes and tech-enabled living spaces is on the rise, as consumers seek modern, connected housing solutions. - Affordable Housing Initiatives:
Budget-friendly housing remains a key driver of growth, catering to the aspirations of young buyers entering the market.
2024 Performance Highlights
- Residential unit sales in 2024 equaled 85% of the total units sold during 2023, showcasing sustained demand.
- Sales increased by 17% compared to the previous year, setting the stage for sustained growth in India’s residential real estate sector.
- The demand for sustainable and tech-driven homes has significantly influenced property values and buyer preferences, according to JLL.
Future Outlook
With rapid urbanization, technological advancements, and evolving consumer preferences shaping the housing market, India’s residential sector is poised for exponential growth. As Millennials and Gen Z continue to drive demand, developers are focusing on creating homes that offer sustainability, connectivity, and affordability to cater to this influential demographic.
By 2030, these generational shifts, combined with favorable policy reforms and economic growth, are set to redefine the country’s housing landscape.
