India's economic growth is projected to drive a surge in housing demand, with experts forecasting a requirement for 100 million new dwelling units by 2030. Rising household incomes and a burgeoning population are key factors contributing to this demand. Abhishek Lodha, CEO of Macrotech Developers Ltd., anticipates that increasing homeownership opportunities and upgrades will fuel demand further. Prime Minister Narendra Modi's infrastructure and housing initiatives are expected to amplify this growth, potentially adding over USD 906 billion to India's economy. Despite challenges, including scaling up construction activity, India's real estate sector remains optimistic about its long-term growth prospects.
India's booming economy could lead to a rise in housing demand, with experts predicting a need for 100 million new dwelling units by 2030. This target is driven by rising household incomes and a growing population.
Abhishek Lodha, CEO of Macrotech Developers Ltd., a major Indian developer known for its high-end projects including the Trump Tower in Mumbai, believes rising incomes will make homeownership a reality for millions of families. An estimated 70 million Indian households are expected to become eligible for homeownership in the next 10 years. Furthermore, many existing homeowners plan to upgrade their living spaces, creating additional demand for new homes.
Prime Minister Narendra Modi's focus on infrastructure and housing sectors is expected to further fuel this growth. Real estate consultancy firm Knight Frank estimates that the increased demand for homes could contribute over USD 906 billion to the Indian economy over the next ten years.
India's housing market has already seen significant growth post-pandemic. 2023 recorded the highest level of home sales in at least 15 years, with approximately 600,000 primary homes built across the country. However, meeting the projected demand of 100 million new homes by 2030 poses a challenge for the construction sector. Despite a rapid pace of construction, achieving this target would require a significant increase in building activity.
Macrotech Developers, also known for its gated communities in upscale neighbourhoods, is actively expanding its presence in major cities like Bengaluru and Pune, located about 150 kilometres from Mumbai. The company is the second-biggest listed real estate developer by market value, after DLF Ltd. Their shares have risen over 43% so far this year, compared with a 40% climb in the NSE Nifty Realty Index.
Lodha remains optimistic about the long-term prospects of the Indian housing market, stating that the current boom is part of a larger 15-year cycle. He believes that India's real estate sector has significant room for growth to match the country's economic strength, stating that the rising demand for homes represents a fifteen-plus year cycle. He emphasized that India is only in year four of this cycle and there is still a long way to go before real estate attains its rightful share in the country's economic mix.
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