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The Indian real estate market is experiencing significant growth, particularly in the luxury segment. Following the pandemic, there has been a notable surge in both commercial and residential real estate demand. Projections indicate a substantial rise, with estimates suggesting a leap from US$477 billion in 2022 to a whopping US$5.8 trillion by 2047, driven mainly by residential and warehouse categories. This surge is expected to increase the sector's share of the nation’s economic output from 7.3% to 15.5% by 2047, propelled by cities such as Hyderabad, Chennai, and Bengaluru.

In 2023, the market has demonstrated robust performance, with ANAROCK Research data revealing a record-breaking half-yearly sale of approximately 2.29 lakh units across the top seven cities.

Luxury real estate is witnessing steady growth, although mid-segment housing continues to dominate. Cities like Kolkata, Delhi's National Capital Region (NCR), Ahmedabad, Mumbai, and Pune, alongside Hyderabad, Bengaluru, and Chennai, are driving the demand for luxury housing. The anticipated rise in High-Net-Worth Individuals (HNIs) and ultra-HNIs from 3% to 9% by 2047 is expected to significantly bolster the luxury property market, which already saw a notable increase to 27% in 2022.

Notably, Hyderabad's shrinking lower-income group, expected to decrease from 43% to 9%, is poised to fuel real estate growth. The city, home to 467 ultra-high net worth individuals (UHNIs), ranks second in the country after Mumbai. Additionally, the demand for mid-segment and luxury real estate is expected to outpace affordable housing.

Urbanization remains a key driver, as metropolitan areas attract more individuals in pursuit of employment and improved prospects. Factors such as infrastructural growth, foreign investments, and integrated lifestyles are further stimulating this trend. The Reserve Bank of India's decision to maintain the repo rates at 6.5% is expected to sustain housing sales momentum, particularly in the mid and luxury segments.

The ultra-luxury housing segment, priced over Rs.40 crores, has experienced an astounding 247% Year-on-Year surge in sales value in 2023, totalling approximately Rs. 4,063 crores across the top seven cities. Mumbai dominated this segment, accounting for 91% of total deals, followed by Delhi-NCR, Gurgaon, and Hyderabad.

The commercial market landscape showcases 271 operational malls across eight major cities, primarily concentrated in Mumbai, Delhi, Ahmedabad, Bengaluru, Hyderabad, Chennai, and Gurugram. Hyderabad's allure to the IT and BFSI industries is anticipated to further drive demand for high-end commercial real estate.

Fresh residential launches in Kolkata and Mumbai have seen substantial growth, with Kolkata witnessing over a 32% increase in Q3 compared to the previous quarter. Mumbai also recorded the sixth-highest Year-on-Year growth in prime residential property prices among global cities in the April-June 2023 period.