New Delhi : Global real estate service firm JLL has released a report regarding the real estate sector. In this report, JLL has estimated the residential market note released at the end of its year that India's residential market may accelerate. Also, by the year 2030, the number of Millennials and Gen Z buyers among those buying new homes can reach up to 60 percent.
Millennials refers to the generation born between the early 1980s and mid-1990s. Gen Z refers to the generation of people born between the early 2000s, while Generation Z is born between the mid-to-late 1990s and early 2010s.
The global real estate services firm also said in the note that the urban home ownership rate will increase from 65 percent in 2020 to 72 percent by 2025. This will be supported by affordable financing options and a younger demographic entering the housing market, the note said. Ritesh Mehta, Senior Director and Head, North and West, JLL India, in his note said India's housing market is poised for significant transformation by 2025, driven by rapid urbanisation, technological innovation and changing consumer preferences.
Tier 2 and 3 cities are emerging as important growth centres, with smaller urban centers like Jaipur, Indore and Kochi driving more than 40 per cent of new housing development by 2025. According to JLL, the housing sector is expected to contribute 13 per cent to the national GDP by 2025, indicating its resilience and potential.
Projected to grow into a US$1 trillion market by 2030, the sector is evolving in response to demographic shifts, policy reforms and global trends. The firm said sustainability, once considered a luxury, is now a necessity in the housing market.
The report said the share of green-certified buildings is expected to reach 30 percent by 2025, double from 15 percent in 2020. According to the report, affordable housing initiatives along with sustainable development, demand for smart homes and tech-integrated living spaces have gained momentum in the market. The report said that in 2024, sustainable development will not just be a buzzword, but a key factor influencing property values and buyer decisions.
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According to JLL, green building certifications such as LEED (Leadership in Energy and Environmental Design) are becoming more common as the real estate industry prioritizes sustainability. According to JLL, demand for smart homes and tech-integrated living spaces is skyrocketing, while budget-friendly housing remains a major focus in India. The number of residential units sold during 2024 is approximately 85 percent of the total units sold during the entire 2023.
The year 2024 saw a significant 17 percent increase in sales compared to 2023. This surge in demand has paved the way for sustained growth in the country's residential asset class, the note said. According to JLL, sales are set to double by 2023.
