India’s Real Estate Sector: Policy Support and the Path to $1 Trillion

The Indian real estate sector is currently in a phase of steady growth, supported by policy measures initiated by the government and rising market confidence. The sector expanded from $120 billion in 2017 to $477 billion in 2022. According to estimates, its market size could reach $1 trillion by 2030. The latest edition of a 20-page pull-out from Hindustan Times, released on September 26, 2025, provides an analysis of the economic and regulatory factors influencing this momentum, offering insights for those looking to participate in this sector.

The real estate sector is moving beyond its traditional role and is now being recognised as an important contributor to India’s Gross Domestic Product (GDP). The cover story in the pull-out examines the reasons for this expansion. It is broadly supported by infrastructure creation, the recent changes in the Goods and Services Tax (GST) regime, and sustained low interest rates.

These factors are collectively contributing to greater affordability and driving demand across housing segments, as well as Grade A office spaces and organised retail centres in the Delhi NCR and national markets. Real estate is on track to become one of the larger contributors to India’s GDP by the end of the current fiscal year (FY25-26), owing to domestic consumption and stable domestic and institutional investment flows.

Some of the elements supporting the current growth are government and regulatory actions detailed in the pull-out, which affect both the supply and demand sides. These include the RBI’s repo rate cut to 5.50%, representing a 50-basis-point reduction, which has eased monetary conditions. This is expected to stimulate retail demand by lowering the cost of credit for homebuyers. Moreover, the rationalisation of GST on key construction materials acts as an incentive.

The special edition also looks into the changing trends in the domain, like a shift from rental to ownership due to improved affordability. This is complemented by rising demand for premium housing and demographic shifts from rural to urban areas.

Some investment hotspots

The special edition also offers insights into areas of investment. These include an analysis of Gurugram, focussing on its role as a corporate and financial hub in the NCR. The report highlights the city’s ability to absorb Grade A commercial office space and its continued appeal to global firms. It identifies the Dwarka Expressway and New Gurugram as residential growth markets and as corridors for commercial and retail development.

The Dwarka Expressway is expected to improve connectivity, positioning these areas as favourable investment zones due to their access to the IGI Airport and Delhi. These corridors are drawing institutional and retail investors seeking long-term value across residential, commercial, and retail asset classes.

Home away from home

For investors seeking portfolio diversification and exposure to the second-home market, a feature on Goa explores how this coastal state has evolved from a holiday destination to a second-home option. It offers insights into investment prospects by geographical area, contrasting the rental yield potential of tourism-linked properties in North Goa with the capital appreciation prospects of properties in South Goa. It also profiles developers, examines villa and fractional ownership projects, and notes emerging investment areas near Goa’s borders that may offer returns.

In summary, the India Real Estate Story 2025 feature by Hindustan Times is a resource for investors and market professionals seeking to understand the current cycle and identify opportunities in Delhi NCR and beyond.

Note to the Reader: This article has been produced on behalf of the brand by HT Brand Studio and does not have journalistic/editorial involvement of Mint.