India’s Real Estate Boom: A $1 Trillion Goldmine by 2030

The Indian real estate sector is on the brink of a historic transformation. At the Cafemutual Ideas Fest 2025, Rohit Rathi, Principal of Real Estate Business at ICICI Prudential Mutual Fund, unveiled a compelling vision—India's real estate market is set to surpass $1 trillion by 2030. Currently valued at $650 billion, the sector has surged at a staggering 29% CAGR post-pandemic, outpacing all other asset classes.

But what's fueling this meteoric rise? And how can investors capitalize on this golden opportunity? Let's dive in.

The Untapped Potential of Indian Real Estate

Globally, real estate contributes 15% to GDP, while in China, it's a whopping 27%. In India, however, it stands at just 7%—a glaring gap that signals immense growth potential. With India now the third-largest economy (PPP terms) and one of the fastest-growing markets, the real estate sector is poised for a quantum leap.

Post-COVID Boom: What Ignited the Surge?

The pandemic reshaped priorities, and real estate emerged as the top-performing asset class. Here's why:

• Outperformance – Real estate eclipsed stocks, gold, and bonds.
• Higher Disposable Income – More savings led to increased homebuying
• Fiscal Prudence – GST reforms and government discipline boosted confidence.
• RERA Implementation – Transparency and accountability attracted investors.

The Future Drivers: What's Next?

Rohit Rathi highlights key growth catalysts:

• Second Home Rule – Tax benefits on second homes spur demand.
• TDS Exemption – Rental income up to ₹6 lakh/year is now tax-free.
• Affordable Housing Push – ₹15,000 crore government allocation.
• Lower Inventory – Down from 33 to 13 months, signaling robust demand.
• Commercial Boom – GCCs and startups drive office space demand.
• New Segments – Warehousing, co-working, and student housing rise.

How to Invest in This Mega Growth?

Want a piece of the $1 trillion pie? Here's how:

• Listed Real Estate Stocks – Direct equity exposure.
• REITs – Liquid, low-entry real estate investing.
• AIFs – High-risk, high-reward bets in niche segments.

Conclusion: The Time to Act is Now

With unprecedented demand, policy tailwinds, and booming innovation, Indian real estate is a once-in-a-generation opportunity. Will you be part of this $1 trillion revolution?