Please Wait.....
Report
India Residential Construction - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026 - 2031)
Market Report I 2026-01-16 I 150 Pages I Mordor Intelligence
India Residential Construction Market Analysis
India Residential Construction Market size in 2026 is estimated at USD 286.38 billion, growing from 2025 value of USD 268.40 billion with 2031 projections showing USD 396.06 billion, growing at 6.7% CAGR over 2026-2031. Rising urban migration, an enlarged public?sector housing budget, and steady private capital continue to underpin growth despite material cost volatility. Demand moves beyond tier-I centres as tier-II and tier-III cities gain infrastructure, while hybrid-work models steer buyers toward larger homes with integrated workspaces. Digital mortgage platforms compress loan approval times, improving affordability, and NRI inflows keep luxury launches resilient even during macro-uncertainty. Developers respond with smart-enabled amenities and greater use of modular building systems to counter skilled-labour shortages and shorten site schedules.
India Residential Construction Market Trends and Insights
Government affordable-housing thrust accelerates tier-city development
Central allocations of INR 78,126 crore (USD 9.41 billion) for PMAY in FY 2025-26 mark a 64% rise over the prior year and expand the target to 3 crore homes. Concurrently, the INR 15,000 crore (USD 1.81 billion) SWAMIH Fund 2 focuses on 1 lakh delayed units, freeing developer cash flows and encouraging site restarts. GST remains at 1% for units below INR 45 lakh (USD 0.05 million), protecting affordability as steel and cement prices fluctuate. Several states cut stamp duty for female buyers, with Maharashtra and Karnataka at the forefront, nudging first-time purchasers. Digital registration planned under the Registration Bill 2025 reduces approval cycles and bolsters working-capital efficiency for mid-sized builders.
Tier-II/III urbanisation drives construction beyond metro saturation
Housing demand pivots toward cost-competitive cities where land and labour run 30-40% below tier-I norms, helped by the Smart Cities Mission and PM Gati Shakti road-rail expansions. The INR 80 trillion National Infrastructure Pipeline amplifies expressway and metro connectivity, opening new suburban nodes. Corporate relocations to Pune, Ahmedabad, and Coimbatore sustain mid-income launches priced at INR 15,000-25,000 per square foot (USD 180 - 300 per square), far under Mumbai averages. Industrial corridors along Delhi-Mumbai and Chennai-Bengaluru add job hubs, while shorter permitting queues in these cities allow quicker project starts than in saturation-hit metros.
Material price volatility pressures project economics
Domestic steel tracked energy swings with 15-20% price shifts in 2024, while cement climbed 8-12% due to freight and fuel escalations. Developers insert cost-escalation clauses yet still face near-term cash gaps when spikes outpace billing cycles. Fly-ash concrete and recycled steel gain share, and forward contracts become vital for volume buyers. Regional price gaps of 20-25% push some builders toward East-based manufacturing clusters to curb freight loads.
Other drivers and restraints analyzed in the detailed report include:
Hybrid-work models reshape space requirements and location preferencesNRI and HNI capital influx elevates luxury segment dynamicsSkilled-labour shortages intensify as infrastructure boom competes for workforce
For complete list of drivers and restraints, kindly check the Table Of Contents.
Segment Analysis
Apartments & condominiums held 69.30% of the India residential construction market share in 2025, reflecting density regulations and entry-level affordability. Rising land costs in metro cores keep vertical living economical, and mixed-use towers around transit nodes boost developer margins through retail add-ons. High-rise projects increasingly reserve podium floors for community amenities that raise absorption rates among mid-income buyers. The segment also benefits from digital sales tools that shorten booking cycles and reduce marketing overhead.
Villas and landed houses, though smaller in count, deliver the fastest 7.07% CAGR as wealthier households pursue privacy and outdoor space. Peri-urban pockets in NCR, Pune, and Bengaluru see villa premiums of 20-30% over equivalent apartment carpet area. Gated layouts bundle clubhouses, sports courts, and landscaped gardens to replicate resort living on city edges. Smart-home wiring and solar roofs come standard, supporting higher ticket sizes and keeping churn low.
New construction accounted for 82.40% of the India residential construction market size with the highest project pipeline in FY 2025. Housing-shortage mitigation, greenfield townships, and corridor-linked suburbs fuel this stream. RERA compliance, environmental safeguards, and pre-approved design typologies speed up clearances for greenfield sites compared with brownfield conversions.
Urban renovation, advancing at 7.00% CAGR, benefits from the INR 1 lakh crore Urban Challenge Fund, which encourages society redevelopment and slum rehabilitation. Aging stock in Mumbai and Delhi undergoes reconstruction to unlock higher floor-space indices, while individual unit upgrades push the home-interior market toward premium fixtures. Modular kitchens, bathroom refits, and home-automation retrofits lift spend per unit and catalyse ancillary trades such as MEP specialists.
India Residential Construction Market Report is Segmented by Type (Apartment & Condominiums, Villas and Landed Houses), Construction Type (New Construction, Renovation), Construction Method (Conventional On-Site, Modern Methods of Construction), Investment Source (Public, Private), and Geography (North India, South India, West India, East & North-East India, and More). The Market Forecasts are Provided in Terms of Value (USD).
List of Companies Covered in this Report:
DLF Ltd. Macrotech Developers (Lodha) Godrej Properties Prestige Estates Projects Sobha Ltd. Puravankara Ltd. Oberoi Realty Brigade Enterprises Tata Housing / Tata Realty Mahindra Lifespace Developers Signature Global Shriram Properties ATS Infrastructure Hiranandani Group Kolte-Patil Developers Sunteck Realty Casagrand Builders Aparna Constructions TVS Emerald Bhartiya City Developers
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
1 Introduction
1.1 Study Assumptions & Market Definition
1.2 Scope of the Study
2 Research Methodology
3 Executive Summary
4 Market Landscape
4.1 Market Overview
4.2 Market Drivers
4.2.1 Govt affordable-housing thrust (PMAY, tax breaks)
4.2.2 Tier-II/III urbanisation & income growth
4.2.3 Low mortgage rates & digital loan access
4.2.4 Hybrid-work demand for larger homes
4.2.5 NRI/HNI capital shift into luxury housing
4.2.6 PropTech-enabled fractional/BTR models
4.3 Market Restraints
4.3.1 Volatile steel-cement prices
4.3.2 Skilled-labour shortages
4.3.3 Stricter 2025 environmental clearances
4.3.4 Rising climate-risk insurance premiums
4.4 Government Initiatives & Vision
4.5 Regulatory Outlook
4.6 Technological Outlook
4.7 Porter's Five Forces
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Buyers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitutes
4.7.5 Intensity of Competitive Rivalry
4.8 Pricing (Construction Materials) and Construction Cost (Materials, Labour, Equipment) Analysis
4.9 Comparison of Key Industry Metrics of India with Other Countries
4.10 Key Upcoming/Ongoing Projects (with a focus on Mega Residential Projects)
5 Market Size & Growth Forecasts (Value)
5.1 By Type
5.1.1 Apartment & Condominiums
5.1.2 Villas and Landed Houses
5.2 By Construction Type
5.2.1 New Construction
5.2.2 Renovation
5.3 By Construction Method
5.3.1 Conventional On-Site
5.3.2 Modern Methods of Construction (Prefabricated, Modular, etc)
5.4 By Investment Source
5.4.1 Public
5.4.2 Private
5.5 By Region
5.5.1 North India
5.5.2 South India
5.5.3 West India
5.5.4 East & North-East India
5.5.5 Central India
6 Competitive Landscape
6.1 Market Concentration
6.2 Strategic Moves
6.3 Market Share Analysis
6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products & Services, and Recent Developments)
6.4.1 DLF Ltd.
6.4.2 Macrotech Developers (Lodha)
6.4.3 Godrej Properties
6.4.4 Prestige Estates Projects
6.4.5 Sobha Ltd.
6.4.6 Puravankara Ltd.
6.4.7 Oberoi Realty
6.4.8 Brigade Enterprises
6.4.9 Tata Housing / Tata Realty
6.4.10 Mahindra Lifespace Developers
6.4.11 Signature Global
6.4.12 Shriram Properties
6.4.13 ATS Infrastructure
6.4.14 Hiranandani Group
6.4.15 Kolte-Patil Developers
6.4.16 Sunteck Realty
6.4.17 Casagrand Builders
6.4.18 Aparna Constructions
6.4.19 TVS Emerald
6.4.20 Bhartiya City Developers
7 Market Opportunities & Future Outlook
- Not Sure / Need Reassuring
- Confirm Content
-
Content is provided by our partners and every effort is made to make Market Report details as clear as possible. If you are not sure the exact content you require is included in this study you can Contact us to double check. To do this you can:
Use the ‘? ASK A QUESTION’ below the license / prices and to the right of this box. This will come directly to our team who will work on dealing with your request as soon as possible.
Write to directly on support@scotts-international.com with details. Please include as much information as possible including the name of report or link so our staff will be able to work on you request.
Telephone us directly on 0048 603 394 346 and an experienced member of team will be on hand to answer.
-
- Sample Pages
-
With the vast majority of our partners we can obtain Sample Pages to support your decision. This is something we can arrange without revealing your personal details.
It is important to note that we will not be able to provide you the exact data or statistics such as Market Size and Forecasts. Sample pages usually confirm the layout or the Categories included in Charts and Graphs, excluding specific data.
To ask for Sample Pages by contact us through ‘? ASK A QUESTION’, support@scotts-international.com, or by telephoning 0048 603 394 346.
-
- Check for Alternatives
-
Whilst we try to make our online platform as easy to use as possible there is always the possibility that a better alternative has not been found in your search.
To avoid this possibility Contact us through ‘? ASK A QUESTION’, support@scotts-international.com, or by telephoning 0048 603 394 346 and a Senior Team Member can review your requirements and send a list of possibilities with opinions and recommendations.
-
- Confirm Content
- Prices / Formats / Delivery
- Prices
-
All prices are set by our partners and should be exactly the same as those listed on their own websites. We work on a Revenue share basis ensuring that you never pay more than what is offered elsewhere.
Should you find the price cheaper on another platform we recommend you to Contact us as we should be able to match this price. You can Contact us though through ‘? ASK A QUESTION’, support@scotts-international.com, or by telephoning 0048 603 394 346.
-
- Discounts
-
As we work in close partnership with our Partners from time to time we can secure discounts and assist with negotiations, this is part of our personalised service to you.
Discounts can sometimes be arranged for speedily placed orders; multiple report purchases or Higher License purchases.
To check if a Discount is possible please Contact our experienced team through ‘? ASK A QUESTION’, support@scotts-international.com, or by telephoning 0048 603 394 346.
-
- Available Currencies
-
Most Market Reports on our platform are listed in USD or EURO based on the wishes of our Partners. To avoid currency fluctuations and potential price differentiations we do not offer the possibility to change the currency online.
Should you wish to pay in a different currency to that advertised online we do accept payments in USD, EURO, GBP and PLN. The price will be calculated based on the relevant exchange rate taken from our National Bank.
To pay in a different above currency to that advertised online please Contact our team and a quotation will be sent within a couple of hours with payment details.
-
- Licenses
-
License options vary from Partner to Partner as is usually based on the number of Users that will benefitting from the report. It is very important that License ordered is not breached as this could have potential negative consequences for you individually or your employer.
If you have questions or need confirmation about the specific license we recommend you to Contact us and a detailed explanation will be provided.
-
- Global Site License
-
The Global Site License is the most comprehensive license available. By selecting this license, the Market Report can be shared with other ‘Allowed Users’ and any other member of staff from the same organisation regardless of geographic location.
It is important to note that this may exclude Parent Companies or Subsidiaries.
If you have questions or need confirmation about the specific license we recommend you to Contact us and a detailed explanation will be provided.
-
- Formats
-
The most common format is PDF, however in certain circumstances data may be present in Excel format or Online, especially in the case of Database or Directories. In addition, for certain higher license options a CD may also be provided.
If you have questions or need clarification about the specific formats we recommend you to Contact us and a detailed explanation will be provided.
-
- Delivery
-
Delivery is fulfilled by our partners directly. Once an order has been placed we inform the partner by sharing the delivery email details given in the order process.
Delivery is usually made within 24 hours of an order being placed, however it may take longer should your order be placed prior to the weekend or if otherwise specified on the Market Report details page. Additionally, if details have been not fully completed in the Order process a delay in delivery is possible.
If a delay in delivery is expected you will be informed about it immediately.
-
- Shipping Charges
-
As most Market Reports are delivered in PDF format we almost never have to add additional Shipping Charges. If, however you are ordering a Higher License service or a specific delivery format (e.g. CD version) charges may apply.
If you are concerned about additional Shipping Charges we recommend you to Contact us to double check.
-
- Prices
- Ordering
- By Credit Card
-
We work in Partnership with PayU to ensure payments are made securely in a fast and effortless way. PayU is the e-payments division of Naspers.
Naspers operates in over 133 International Markets and ranks 3rd Globally in terms of the number of e-commerce customers served.
For more information on PayU please visit: https://www.payu.pl/en/about-us
-
- By Money Transfer
-
If you require an invoice prior to payment, this is possible. To ensure a speedy delivery of the Market Report we require all relevant company details and you agree to maximum payment terms of 30 days from receipt of order.
With our regular clients deliver of the Market Report can be made prior to receiving payment, however in some circumstances we may ask for payment to be received before arranging for the Market Report to be delivered.
-
- By Credit Card
- Security
- Website security
-
We have specifically partnered with leading International companies to protect your privacy by using different technologies and processes to ensure security.
Everything submitted to Scotts International is encrypted via SSL (Secure Socket Layer) and all personal information provided to Scotts International is stored on computer systems with limited access in controlled environments.
-
- Credit Card Security
-
We partner with PayU (https://www.payu.pl/en/about-us) to ensure all credit card payments are made securely in a fast and effortless way.
PayU offers 250+ various payment channels and eWallet services across 4 continents allowing buyers to pay electronically, whether on a computer or a mobile device.
-
- Website security