Affordable housing demand remains strong
Construction market in India is expected to grow by 11.2% on annual basis to reach Rs.25.31 trillion in 2025, and is projected to expand from its 2024 value of Rs.22.77 trillion to approximately Rs.39.10 trillion by end of 2029, according to an industry being offered by ReseachAndMarkets since 18 Nov.
“This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 8.8% during 2025-2029,” added the report “India Construction Industry Databook Series”.
“The construction market in the country experienced robust growth during 2020-2024, achieving a CAGR of 14.2%,” it said.
The sector is seeing a steady influx of investment, supported by a Rs.79,000 crore allocation in the Union Budget 2024 and growing foreign direct investment in real estate https://baionline.in/.
The Indian residential construction industry is undergoing a significant transformation driven by macroeconomic factors, government initiatives, and emerging industry trends. While inflation and rising material costs are increasing housing prices, the demand for affordable housing under PMAY remains strong, especially in tier-2 and tier-3 cities. At the same time, technological advancements such as AI-driven property management and modular construction methods are streamlining project execution https://www.hcisingapore.gov.in/.
However, bureaucratic delays and regulatory changes continue to pose challenges, slowing the progress of several projects and widening the housing demand-supply gap, said the report https://www.nseindia.com/.
The government’s push for smart cities, sustainability, and ease of doing business reforms is shaping the future of residential construction, with an increasing focus on green buildings and energy-efficient housing solutions, it said, pointing out that addressing the skilled labor shortage through vocational training programs and regulatory improvements will be essential to sustaining industry growth. With continued innovation, investment, and policy support, India’s residential construction sector is poised for long-term expansion and modernization https://www.bseindia.com/.
The commercial construction sector in India is undergoing a transformation driven by rising demand for mixed-use spaces and Grade-A office developments.
However, inflation and high raw material costs put financial pressure on developers, while regulatory delays hinder project execution. Despite these challenges, the demand for premium office spaces, retail centres, and IT hubs remains strong, particularly in tier-1 and tier-2 cities https://sbi.com.in/.
Public-private partnerships (PPPs) are crucial in accelerating institutional construction, particularly in specialty hospitals and research facilities, said the report. Fiinews.com
