Projecting the Future of the Real Estate Market
As of February 25, 2025, the global real estate market is experiencing significant growth, with projections indicating substantial expansion by 2030. The market was valued at approximately USD 9.8 trillion in 2023 and is forecasted to reach USD 14.54 trillion by 2030, reflecting a Compound Annual Growth Rate (CAGR) of 5.8% from 2024 to 2030.
This growth is driven by factors such as rapid urbanization, economic development, and demographic shifts. The Asia-Pacific region is expected to witness robust growth, driven by urbanization and economic development. North America and Europe continue to be significant contributors, with steady demand in residential and commercial sectors.
In India, the real estate sector is poised for unprecedented growth, with the market size projected to reach USD 1 trillion by 2030. During the first quarter of 2024, the Indian real estate industry saw a 15% rise in investments, demonstrating resilience against global uncertainties.
Foreign investors accounted for 55% of the total inflows, signifying increased confidence in the Indian market and its potential for high returns. This surge in investment has translated into real growth for office buildings and high-end residential properties, with gross office leasing activity reaching 15.16 million square feet in the first quarter of 2024, a 13.8% year-over-year growth.
Demographic shifts are also influencing the real estate landscape. Millennials and Gen Z are anticipated to constitute about 60% of new homebuyers in India by 2030, indicating a shift towards younger demographics in the housing market. The affordable housing segment is expected to see a demand surge to 31.2 million units by 2030, presenting a potential market size of approximately USD 819 billion.
This trend reflects the growing need for accessible housing solutions for the younger population entering the housing market. Technological advancements are playing a pivotal role in transforming real estate operations. The integration of technology, such as the adoption of real estate software, is streamlining processes and attracting tech-savvy consumers.
In India, the real estate software market is projected to reach USD 1,167 million by 2030, growing at a CAGR of 13.5% from 2024 to 2030. These tools enhance efficiency in property management, sales, and customer engagement, contributing to the overall growth of the sector. Despite the positive outlook, the real estate market faces challenges that require careful consideration.
Economic uncertainties, such as global economic fluctuations, can impact investment and purchasing decisions. Regulatory changes, including shifts in government policies like taxation and property laws, can influence market dynamics. Additionally, there is a growing need for sustainable and environmentally friendly real estate solutions to meet consumer demand and regulatory requirements.
Addressing these challenges is essential for maintaining the momentum of growth in the real estate sector. In summary, the global real estate market is on a trajectory of significant growth, driven by urbanization, economic development, and demographic shifts. The Indian real estate sector, in particular, is expected to experience substantial expansion, with projections indicating a market size of USD 1 trillion by 2030.
Technological integration and a focus on affordable housing are key factors contributing to this growth. Stakeholders should remain cognizant of economic uncertainties, regulatory changes, and sustainability concerns to navigate the evolving landscape effectively.
