India's housing market will face major changes and growth in the coming years. According to a recent report by JLL, Millennials and Gen Z will contribute about 60% of home buyers by 2030. Urbanization, affordable financial plans, and increasing participation of young buyers are driving this change.
The urban homeownership rate, which stood at 65% in 2020, is likely to reach 72% by 2025. Also, tier II and III cities, such as Jaipur, Indore, and Kochi, will account for more than 40% of the new housing development by 2025. This reflects the economic and residential potential of small urban centres.
Sustainable and smart housing is one of the biggest priorities of this time. The share of green-certified buildings will increase from 15% to 30% by 2025. Also, smart homes and technologically integrated residential projects are becoming popular among buyers. Sustainable development is having a profound impact not only on the environment, but also on property values and consumer decisions.
From an economic perspective, India's housing sector will contribute 13% to the national GDP by 2025. By 2030, this market is expected to reach a size of US$1 trillion. Policy reforms, demographic changes, and global trends will play an important role behind this.
The increase in sales is another encouraging sign for the sector. In 2024, sales of residential units are expected to increase by 17% compared to 2023. This shows that the confidence of investors and customers in the Indian housing market is continuously increasing.
The JLL report also notes that sustainability initiatives like LEED certification and affordable housing plans are becoming industry priorities. Additionally, rapidly changing demographics and technological innovations have created new opportunities in this sector.
