NEW DELHI: The housing sector in the country is expected to contribute 13 per cent to the national GDP by 2025, reflecting its resilience and potential, according to a report on Friday.
Projected to grow into a $1-trillion market by 2030, the sector is evolving in response to demographic shifts, policy reforms, and global trends, according to the report by JLL, a leading global commercial real estate and investment management company.
Tier 2 and 3 cities are emerging as pivotal growth hubs, with smaller urban centres like Jaipur, Indore and Kochi driving more than 40 per cent of new housing developments by 2025.
The urban homeownership rate is set to increase to 72 per cent by 2025, up from 65 per cent in 2020, supported by affordable financing options and a younger demographic entering the housing market.
Millennials and Gen Z buyers are expected to comprise 60 per cent of new homebuyers by 2030, the report mentioned.
Sustainability, once considered a luxury, is now a necessity in the housing market. Green-certified buildings are expected to account for 30 per cent of new residential projects by 2025, doubling from 15 per cent in 2020.
The number of residential units sold during 2024, translating to approximately 85 per cent of the total units sold during entire 2023.
2024 saw a remarkable 17 per cent increase in sales compared to the same in 2023. This upward trajectory in demand paved the way for sustained growth in the country’s residential asset class, said the report.
Mixed-use developments are becoming increasingly popular, reflecting a global trend towards creating live-work-play environments.
“These developments combine residential, commercial, and recreational spaces within a single project, offering residents the convenience of having everything they need within walking distance, ” the report mentioned.
The demand for smart homes and tech-integrated living spaces is also skyrocketing, it added.