Since the pandemic, India’s property market has heated up, with 2023 marking the best year for home sales in at least 15 years.
India will need nearly 100 million new homes this decade as rising household incomes boost demand in the world’s fastest-growing major economy. “About 70 million Indian households will become eligible for home ownership over the next 10 years. This, combined with people looking to upgrade their apartments, should create a need for as many as 100 million new houses,” Abhishek Lodha, CEO of Macrotech Developers Ltd., told Bloomberg in an interview.
Since the pandemic, India’s property market has heated up, with 2023 marking the best year for home sales in at least 15 years. This momentum has helped Macrotech report its highest-ever quarterly sales in the three months ending March. Macrotech, which runs under the Lodha brand, is known for flagship projects such as the Trump Tower in Mumbai.
Prime Minister Narendra Modi, who began his third term, has pledged to continue focusing on growth, particularly in the housing and infrastructure sectors.
According to real estate consulting firm Knight Frank, rising income levels are expected to generate $906 billion in economic output over the next decade. Despite building about 600,000 primary homes in 2023, the construction sector will face challenges in meeting the projected demand for 100 million homes this decade, Lodha noted.
Lodha emphasized the long-term nature of the demand, saying, “The rising demand for homes is a fifteen-plus year cycle. We are only in year four, and there is a long, long way to go before India’s real estate sector achieves its rightful place in the economic mix.”
