banner banner

Stay Up-to-Date with Our Blogs & Articles

The texts on this website have been translated using an automated translation tool and its accuracy cannot be guaranteed. We recommend referring to the English version of the content for the most precise information. In the event of any disputes or inconsistencies, the contents in the English language shall be considered final and binding. IIFL HFL disclaims any liability or responsibility in this matter.
Go Back to Main blog page

What 2023 Has in Store for the Indian Real Estate Sector

By IIFL Home Loans | Published On Jun 02 2023 7:21 AM 1 min read 103 views 707 Likes
Indian Real Estate

In a prosperous and ever-growing country like India, it is no surprise that all markets are booming. The rather recent growth in demand for residential and commercial space has helped stabilise the industry against headwinds like the pandemic.

Let's look at the industry's past, present and possible future that remains a healthy part of investors' portfolios: The Real Estate Sector of India, 2023.

Real Estate Industry in 2023

Q1 of FY 2023 has brought about some positive developments in the Indian Real Estate sector:

  • In 2022, private equity (PE) investments in India's real estate sector reached US$ 3.4 billion.

  • During the first half of the 2022–23 FY, India's top seven primary residential markets witnessed the highest sales in the past decade.

  • Institutional investor inflows amounted to 37%.

  • A pledge of Rs. 79,000 crores to the PM Awas Yojana was announced in the Union Budget 2023–24, showing an increase of 66% compared to the previous budget.

The Outlook

Construction of commercial properties

Despite the risks associated with this sector, the general outlook seems positive. Investors, builders, the Government, and individuals seem to believe that the industry will continue to see an upward graph.

The continuous rise in GDP per capita, increasing disposable income, more institutional investor interest, growing urbanisation, and growing awareness about this sector's investment potential drive the realty market.

Here are some key points of importance to note about the future:

  • India ranks among the top 10 appreciating housing markets globally regarding price appreciation.

  • By 2023, it is projected that the stock of organised retail real estate will witness a significant growth of 28%, reaching approximately 82 million square feet.

  • Blackstone, a private market investor, has invested significantly in the Indian real estate sector, totalling Rs. 3.8 lakh crore (US$ 50 billion). The firm is now looking to invest an additional Rs. 1.7 lakh crore (US$ 22 billion) by 2030.

  • The Government has granted permission for 100% Foreign Direct Investment (FDI) in townships and settlements development projects.

  • The real estate sector in India is projected to expand significantly, reaching a market size of US$ 1 trillion by 2030, a substantial increase from its size of US$ 200 billion in 2021. Furthermore, the sector will contribute approximately 13% to the country's GDP by 2025.

  • It is estimated that there is currently a shortage of approximately 10 million housing units in urban areas. To accommodate the country's urban population growth, an additional 25 million units of affordable housing will be required by 2030.

This highlights the significant demand for housing and the expansion potential that the Indian Real Estate sector holds over the next 10 years.

The Takeaway


Ride the real estate wave and secure a cosy home or the commercial space of your dreams with the help of IIFL Home Loans. Our main goal is to provide you with safe and affordable housing finance options so that you can confidently invest in your chosen property.

IIFL Home Loans' loan options with flexible repayment schedules and affordable interest rates make it a great option to finance your property desires. Online application and quick approval rates ensure you won't worry about delays.

Take a quick eligibility test and apply now for a home loan from IIFL Home Loans. 


  1. 1. What are the real estate returns in the last 10 years in India?

On average, the real estate sector has provided a return of around 11.6% over the past 10 years. (Source: Financial Express)

  1. 2. What are the real estate returns in the last 20 years in India?

According to CRISIL, over the last 20 years, the realty sector has delivered annual returns of about 6% on residential and commercial property. (Source: Nobroker)

  1. 3. What is a home loan?

Banks and financial institutions offer home loans to buy properties.

  1. 4. How can I get a home loan?

To get a home loan, you can visit a bank or financial institution and consult the relevant officials about opting for a home loan. You can visit the official website of IIFL Home Loans to learn more about our affordable housing loans and other options. You can also apply online now!

  1. 5. Can I get a loan to buy commercial property in India?

Yes, several lenders in India offer loans with the specific purpose of the borrower buying commercial space. IIFL Home Loans offers various affordable and flexible loan options for your unique and individual needs.

  1. 6. Is investing in real estate in India a good option?

Investing in real estate in India seems to be a good option, considering the positive outlook of organisations like ICRA and CRISIL and the vast potential the sector holds for the future.


apply loan

Quick and Hassle Free Loan Processing

green ad
Prelude to Building Green - IIFL Home Loan's Guide to Sustainable Affordable Housing
Download report

Disclaimer: The information contained in this post is for general information purposes only. IIFL Home Finance Limited (including its associates and affiliates) ("the Company") assumes no liability or responsibility for any errors or omissions in the contents of this post and under no circumstances shall the Company be liable for any damage, loss, injury or disappointment, etc. suffered by any reader. All information in this post is provided "as is", with no guarantee of completeness, accuracy, timeliness, or of the results, etc. obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability, and fitness for a particular purpose. Given the changing nature of laws, rules, and regulations, there may be delays, omissions, or inaccuracies in the information contained in this post. The information on this post is provided with the understanding that the Company is not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. This post may contain views and opinions which are those of the authors and do not necessarily reflect the official policy or position of any other agency or organization. This post may also contain links to external websites that are not provided or maintained by or in any way affiliated with the Company and the Company does not guarantee the accuracy, relevance, timeliness, or completeness of any information on these external websites. Any/ all (Home/ Loan Against Property/ Secured Business Loan/ Balance Transfer/ Home Improvement Loan/ NRI Home Loan/ Home Loan for Uniformed Services) loan product specifications and information that may be stated in this post are subject to change from time to time, readers are advised to reach out to the Company for current specifications of the said (Home/ Loan Against Property/ Secured Business Loan/ Balance Transfer/ Home Improvement Loan/ NRI Home Loan/ Home Loan for Uniformed Services) loan.