Affordable Housing Drives Realty Growth In 2024

Mumbai: The year 2024 marked a turning point with significant advancements in technology adoption, sustainable construction practices, and affordable housing solutions—positioning the sector for even better things to come.

Affordable housing emerged as a cornerstone of the sector’s growth in 2024, addressing the pressing need for accessible living spaces in a rapidly urbanizing India. Government initiatives like the Pradhan Mantri Awas Yojana (PMAY) and policy reforms have catalysed the launch of inclusive housing projects for middle- and low-income families.

2024 was a landmark year for Real Estate Investment Trusts (REITs) in India. These investment vehicles have gained significant traction, offering domestic and international investors an efficient way to access the Indian real estate market. The success of REITs has enhanced market liquidity and strengthened investor confidence, reflecting the sector’s maturity.

Foreign investments also saw a notable uptick, with global players drawn to India’s economic growth, infrastructure development, and expanding middle class. This influx of capital has not only bolstered the commercial real estate market but also accelerated modernization and innovation across the industry.

According to Mordor Intelligence, the real estate market in India is projected to reach $856 billion by 2029, growing at a compound annual growth rate (CAGR) of 8.71 per cent from its 2024 valuation of $518.5 billion. Residential real estate alone saw launches reach record levels, with estimated 280,000-290,000 units introduced in 2024 across India’s top seven cities. This marks a 15% year-over-year increase in launches, driven by robust demand in mid- and premium segments. Meanwhile, the adoption of co-working spaces surged, with 54% of companies opting for flexible office setups to align with hybrid work trends, bolstering the commercial sector’s growth.

The year witnessed an unprecedented acceleration in technology adoption across the real estate landscape. AI-powered property management systems have redefined operational efficiency, offering personalized tenant services and enabling real-time monitoring. From streamlining maintenance processes to enhancing tenant satisfaction, technology has become an indispensable tool.

Smart infrastructure took centre stage, transforming urban living with IoT-enabled solutions that optimize energy use, strengthen security, and elevate lifestyles. Intelligent waste management, automated climate control, and connected ecosystems are no longer futuristic concepts but present realities, driving cities towards greater sustainability and livability.

Climate change concerns have placed sustainability at the forefront of real estate priorities. The adoption of green certifications, such as LEED and IGBC, surged in 2024, underscoring the sector’s commitment to eco-friendly practices. Solar panels, energy-efficient building materials, and water conservation technologies have significantly reduced the carbon footprint of developments while offering cost savings for owners and tenants alike.

This sustainability drive is not a fleeting trend but a pivotal shift. Developers across residential and commercial projects are aligning with global sustainability goals, ensuring that the sector remains a key player in creating a greener, more responsible future.

Talking to Bizz Buzz, Vineet Dawar, President - Sales & Strategy, Elan Group, says, “Year 2024 has been a landmark year for the Indian real estate sector, showcasing remarkable resilience and adaptability.”

The residential segment, particularly luxury housing, continued its stellar performance, drawing heightened interest from both end-users and investors. In the NCR region, Gurgaon solidified its position as a preferred destination, bolstered by strategic infrastructure projects such as the completion of key phases of the Dwarka Expressway and the expansion of metro connectivity, he said.

According to a CREDAI report, with Delhi-NCR witnessing an impressive 32 per cent year-on-year increase in housing prices, the highest among India’s eight major cities, these advancements have transformed Gurgaon into a vibrant hub for residential and commercial development. Investors from other cities and even international markets have also started to invest heavily in Gurugram, further fuelling this growth. The sector’s upward trajectory in terms of new launches and home sales in 2023 set the stage for sustained growth this year, with further momentum anticipated as we head into 2025.

Rahul Singla, Director, Mapsko Group, says, “As we close the chapter on 2024, the Indian real estate sector has demonstrated exceptional resilience and innovation, emerging stronger and more dynamic than ever. This year has been a turning point, with significant strides in technology adoption, sustainable building practices, and a renewed focus on affordable housing initiatives.”

The success of REITs and the increasing adoption of green building certifications have highlighted the industry’s commitment to responsible growth. The integration of AI-driven property management systems and smart infrastructure has redefined urban living standards. Moreover, the steady inflow of both domestic and international investments underscores the confidence in India’s real estate market as a global powerhouse.