India‘s real estate market has demonstrated strong performance, fueled by robust demand across the country, driven by economic stability and the growth of infrastructure such as roads and metro networks, according to the Economic Survey. The report, tabled in Parliament on Friday, highlights that the real estate sector has benefited significantly from the Real Estate (Regulation and Development) Act (RERA) and the Goods and Services Tax (GST), which have brought transparency, reduced fraud, and improved tax compliance.

The Survey notes that demand for real estate is not limited to tier 1 and tier 2 cities but spans across the country, boosted by enhanced connectivity through metro networks and improved road infrastructure. Housing demand is expected to reach 93 million units by 2036, with the residential market having reached an 11-year high in sales volume during the first half of 2024. In the top eight cities, sales recorded an 11% year-on-year growth.

RERA has been a key factor in improving the sector by ensuring timely project deliveries, reducing misuse of funds, and fostering trust through increased transparency. Following RERA’s implementation, India ranked 31st out of 89 countries in the 2024 Global Real Estate Transparency Index. The Survey also credits GST with simplifying the tax structure for real estate transactions, making it easier for businesses to comply and reducing tax evasion.

Additionally, the rise of Real Estate Investment Trusts (REITs) has contributed positively to the commercial real estate sector by enhancing liquidity and attracting institutional investors. The government’s digital initiatives, including the modernization of land records and the implementation of online platforms for building plan approvals, have further enhanced transparency and reduced delays.

As of January 2025, around 1.38 lakh real estate projects and nearly 96,000 agents have been registered under RERA, with significant progress in addressing complaints, marking a major step towards a more regulated and efficient real estate market.

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