Why India’s Real-Estate Boom Is Still in Early Gears

India’s real estate sector has been one of the biggest beneficiaries of post-pandemic economic recovery — with rising home sales, record launches, and renewed investor interest. Yet, according to Abhishek Lodha, Managing Director and CEO of Macrotech Developers (Lodha Group), the market is still far from reaching its true takeoff phase.

This perspective might surprise many who see India’s property market as booming, but Lodha’s insights reflect a deep understanding of long-term growth cycles, affordability trends, and infrastructure evolution. His message is clear — India’s real estate journey is only getting started.

The Real Estate Cycle: Understanding the “Takeoff Phase”

To understand Lodha’s comments, it’s important to know what the “takeoff phase” in real estate actually means.

A takeoff phase occurs when a sector experiences sustained, large-scale demand across multiple segments — residential, commercial, and industrial — supported by stable income growth, institutional capital inflows, and robust policy frameworks.

While India has witnessed rising property sales and demand in urban centers like Mumbai, Gurugram, Pune, and Bengaluru, Lodha believes the sector hasn’t yet achieved that broad-based acceleration seen in mature markets such as the U.S. or China during their growth years.

“We are in the early innings of India’s real estate cycle,” Lodha said in a recent interview. “The fundamentals are strong, but the real takeoff will come when income levels, infrastructure, and consumer confidence align across cities, not just metros.”

Rising Sales, But Still Limited Depth

The Indian property market recorded record-breaking sales in FY24, with housing demand at its highest in over a decade. According to data from Knight Frank and ANAROCK, over 4.7 lakh homes were sold across the top seven cities, signaling renewed confidence among homebuyers.

However, Lodha points out that despite this impressive growth, the sector’s reach remains narrowly concentrated. Much of the activity is still limited to Tier-1 markets and a handful of premium developers.

“The depth of the market is still building,” Lodha noted. “We need to see consistent end-user demand across smaller cities and the mid-income housing segment before we can say the market has taken off.”

In other words, while the current boom reflects solid momentum, it’s still more of a revival than a full-fledged real estate revolution.

Income Growth Is Key to Sustainable Demand

India’s growing middle class is the backbone of housing demand, but real income growth has been uneven across sectors and regions. The aspirational buyer segment — those looking to upgrade from rental to ownership or from small apartments to larger homes — still forms the largest share of demand, but affordability pressures persist.

Lodha explains that the next stage of real estate growth will depend on rising disposable incomes and the expansion of formal employment opportunities in both metro and non-metro areas.

“Once income growth becomes broader and more consistent, it will unlock massive latent demand,” he said. “That’s when India’s real estate will truly take off.”

With India’s GDP growth projected to average 6.5–7% annually over the next few years, the potential for wealth creation and property ownership remains immense. The challenge lies in ensuring that economic gains translate into real purchasing power for the middle class.

Infrastructure and Urbanization: Catalysts for the Next Wave

Infrastructure is another critical factor driving the next phase of real estate growth. India’s ambitious programs — from Bharatmala and Gati Shakti to metro expansions and airport developments — are gradually reshaping connectivity and urban planning.

Lodha believes this transformation will widen the real estate map of India, taking demand beyond traditional hotspots. Cities like Jaipur, Lucknow, Nagpur, and Coimbatore are already witnessing significant real estate interest driven by improved connectivity and job creation.

“When infrastructure catches up, the real estate market deepens naturally,” Lodha explained. “Accessibility creates affordability — and affordability drives ownership.”

As more Tier-2 cities evolve into economic hubs, they’ll contribute to the next wave of India’s housing boom, making growth more inclusive and regionally balanced.

Capital Flow and Institutional Investment on the Rise

The investment story is another indicator of India’s real estate maturity. Global institutional investors, sovereign wealth funds, and private equity firms have steadily increased exposure to Indian assets, especially in residential and commercial segments.

In 2024 alone, India attracted over $5 billion in real estate-focused investments, with a growing share directed toward sustainable housing and mixed-use developments.

Lodha emphasizes that the presence of institutional capital improves governance, transparency, and long-term stability. “When credible capital flows in, it signals confidence,” he noted. “But the takeoff will happen when both institutional and retail demand rise in tandem.”

Policy Support Strengthening the Ecosystem

Government reforms — especially RERA, GST rationalization, and the Model Tenancy Act — have improved the industry’s transparency and accountability. Lodha credits these regulatory milestones for laying the foundation for sustainable growth.

However, he stresses that consistent implementation and ease of doing business are vital for the sector to progress from a growth phase to a boom phase. He also calls for more long-term financing avenues for developers and buyers, such as real estate investment trusts (REITs) and affordable home loan programs.

A Market Poised, Not Peaking

Despite record sales, price appreciation, and investor optimism, Lodha remains cautious about declaring a “boom.” He believes India’s real estate market is poised for acceleration, not peaking — a key distinction that reflects his long-term outlook.

“The fundamentals — demographics, urbanization, affordability — are all aligned for growth,” Lodha said. “But the journey from promise to potential will take another decade of consistent execution.”

In essence, the market is in the right direction, but still early in its growth cycle.

Conclusion: The Decade of Real Estate Transformation

Abhishek Lodha’s perspective offers a dose of realism in a market often fueled by optimism. While sales data and luxury launches grab headlines, the underlying health of India’s real estate sector will depend on sustained affordability, infrastructure readiness, and policy continuity.

India’s real estate story is far from over — it’s still unfolding. The sector may be in early gears, but the engine is powerful, the road ahead is long, and the destination is a more transparent, accessible, and investor-friendly housing ecosystem.

If Lodha’s vision proves right, the coming decade could truly be India’s real estate decade — one driven not just by numbers, but by stability, trust, and inclusivity.

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