Indian Real Estate

Overview of Real Estate in India 2023


30, January 2026

Out of all the assets that investors invest in, Real Estate in India 2023 has been the most lucrative and relied upon sector among all. Attracting heavy investments in both Commercial and Residential Real Estate, the markets have witnessed immense growth in this sector.

Real Estate in India 2023

Globally, Real Estate Investments have always been considered as the safest bet to invest in terms of long-term security and gains. Time is a testament to the fact that there have been numerous successful people who have advised others to invest in it.

Asserting again the fact that Real Estate in India and investments go hand in hand, it is left to be seen as to how this sector fares over other sectors like mutual funds, fixed deposits, insurance, stocks, gold, etc.

2020-23 has been drastically affected by the inception of COVID-19, breaking down Indian real estate into a corner, even affecting globally. Covid-19 has badly affected the flow of the real estate industry in India. With all the pandemic and stuff, India has completely gone into lockdown, breaking the spirit of investors and realtors in India. But is India we are talking about. Even history has praised the tolerance of Indians and their co-existence.

After 2021 hit the top. Indian Real Estate launched their new weapon of Metaverse real estate helping investors, realtors, and home buyers alike. Here you can relish the real estate and land parcels in the metaverse. And there begins the era of virtual reality, raising the stakes of real estate to its peak in India.

It has always been a preference for investors who are looking at high returns on investment (ROI) on a long-term basis, placing itself in the very center of the investment ecosphere making it a very lucrative option.

The objective of this blog is to convey the intrinsic strengths of this sector and educate people on how to invest wisely and responsibly in this sector.

Real Estate of India 2023 - Return On Investment

The biggest factor that favors Indian Real Estate is the recent economic reforms that have stormed the residential housing market. The real estate return on investment can be calculated in two different ways - the out-of-pocket method and the cost method. The calculation of real estate return on investment is done by comparing the annual return with the original out-of-pocket expenses.

The all-new GST rates, the RERA Act, and the Benami Act have ushered in an era of transparency and operations are taking a turn for the better with things being made more organized.

Indian Real Estate has witnessed major growth in the past couple of years and presently, 2023 couldn’t have been better.

In the 23rd GST Council Meeting new rates were set and these newly implemented reforms come as a result of the Government’s ‘Housing for All by 2022’ initiative which is a win-win situation for homebuyers.

To begin with, the real estate sector in India is extremely dependent on the domestic economy. Consumer spending nature is a key factor here.

When an investor is looking at various options in their investment portfolio, real estate in India 2023 looks lucrative thanks to the other assets being extremely volatile.

In times of economic instability excluding real estate, the majority of the assets can experience extreme volatility with chances of complete losses arising from any global crisis. In the times that we’re living today situations like a spike in crude oil prices, a trade war between developed countries, or defaults by global banks can happen at any moment. Despite this real estate has always been immune from such economic and global factors.

Another interesting fact is that assets in the housing market are tangible with the ability to return on investment in terms of rental income and collateral support in other ventures. So the scope of return on investment is extremely high.

Well let's not forget with RERA making it compulsory for property developers to deliver projects within the stipulated time, a certain discipline shall be inculcated into the market. The confidence of homebuyers has been boosted. This also means that investments in the real state scenario are safe now from delay in possession.

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Here's a breakdown of some key recent updates:

  • Price Trends: A Mixed Bag:

Tier 1 Cities: While large cities such as Mumbai and Delhi have seen an increase in property registration and steady prices, affordability remains a challenge, particularly for first-time house buyers.

Tier 2 & 3 Cities: These cities are undergoing rapid growth, owing to improved infrastructure and greater economic activity. Housing costs in these locations are increasing, but at a slower rate than in Tier 1 cities.

  • Regulatory Landscape: A Focus on Transparency

RERA Impact: The Real Estate Regulation and Development Act (RERA) has provided much-needed transparency and accountability in the sector. Home purchasers are now more protected from project delays and unscrupulous developers.

New Norms for REITs: SEBI's (Securities and Exchange Board of India) new laws seek to make Real Estate Investment Trusts (REITs) more appealing to investors. This might potentially open up new funding for the real estate sector.

  • Demand Drivers and Challenges

Government Initiatives: SEBI's (Securities and Exchange Board of India) new laws seek to make Real Estate Investment Trusts (REITs) more appealing to investors. This might potentially open up new funding for the real estate sector.

Rising Interest Rates: The RBI's recent suspension in repo rate decreases may affect buyer enthusiasm, as house loan interest rates remain a concern.

Office Market: A Wait-and-See Approach: The office space segment is recovering gradually as businesses implement hybrid work practices. The long-term impact of this trend on office space demand is uncertain.

  • Investment Opportunities:

Select Commercial Projects: Commercial office spaces in prime locations with strong tenant profiles could offer good investment potential in the long run.

Residential Projects in Growing Cities: Tier 2 and 3 cities with robust infrastructure development offer promising prospects for residential investment, especially for those seeking capital appreciation.

Homes247.in Experts View:

Indian Real Estate’s growth will generate huge Returns on Investment and be the talking point of the next decade.

The demand for housing in India shall only increase in the coming times.

Housing being a basic necessity and India being the second most populated democracy in the world, the demand for housing shall keep the market going in a way that existing unoccupied units and new projects are developed efficiently and business flourishes.

It's been a tradition to invest in real estate and become rich for a reason. Real estate in India in 2023 has always been known to reap great returns and benefits.

Hence we at Homes247.in encourage our homebuyers to Invest in Real Estate and experience the massive ROI that can change your financial prospects for the better.

According to Parth Mehta, managing director of Paradigm Realty, other asset classes like gold, commodities, currency, and equity markets, are highly correlated to global economic factors, while real estate 2023 is largely insulated from overseas factors.

“Real estate in India is highly dependent on consumer spending in the domestic economy. Other investments are very volatile and can erode one’s portfolio in no time, in case of any global crisis, such as a spike in crude oil prices, a trade war between developed countries, or defaults by global banks. Moreover, the housing market offers a tangible asset, with the potential to earn rental income or avail of a loan against property in times of need,” Mehta explains.

Aditya Kedia, managing director of Transcon Developers, maintains that the present real estate in India 2023 market offers a win-win situation, for potential buyers and developers alike. “With RERA in place, developers are bound to deliver projects within the stipulated period of time,” he says.

Manju Yagnik, the vice-chairperson of the Nahar Group, adds that “The sector has witnessed growth in recent times, with a rise in the demand for commercial, as well as residential spaces. Private equity investment in real estate in India is estimated to grow in the coming years.”

“It is true that investing in real estate in India 2023 requires liquidation of more than 50 percent of one’s life savings,” says Dhaval Shah, joint managing director of Parinee Group. However, from the perspective of a long-term investment, the return on investment (ROI) will be more than the amount invested, because of infrastructure improvements, he says. “The demand for housing in India will never diminish and hence, it will be a profitable investment,” he elaborates. Moreover, with realty prices across India remaining more or less stagnant and developers focusing on clearing their existing inventory, this may be a good time to make an investment, say experts.

Girish Shah, executive director, of marketing and corporate communications, at Knight Frank India, advises that for sizeable returns, any investment in real estate in India has to be followed by a reasonable holding period. “In regular market conditions, this holding period can range between five and seven years,” says Girish Shah.

Investors are also looking to diversify their portfolios, into asset classes that not only provide long-term appreciation but also regular returns. Real estate is one of the few assets, which promises both, asserts Ashish R Puravankara, managing director of Puravankara Ltd. “If there is one asset class that has appreciated consistently over the years, it is real estate in India. It gives the best appreciation in the long run, especially when a buyer purchases a property from a trusted and reputed developer,” he adds.

Apart from precious metals, a real estate investment 2023 provides the investor with the comfort of owning a physical asset. As the adage ‘roti, kapda aur makaan’ goes, a home is always seen as a basic necessity, adds Rahul Shah, CEO of Sumer Group.

“This sector is widely chosen, because of its high tangible asset value, frequent generation of income and tax benefits. It is also one of the most secure income-generating assets that consumers invest in, for the security of their future generations,” says Rahul Shah.

The main drawback of a real estate investment is that the asset cannot be easily liquidated at short notice. Other asset classes like stock markets, mutual funds, etc., can also give high returns to investors. Investing in real estate in India 2023 is also an expensive proposition, especially in metropolitan cities. Nevertheless, a real estate investment can be used as collateral, to raise more capital. When it comes to investing in realty, Pritam Chivukula, co-founder and director of Tridhaatu Realty & Infra Pvt Ltd advises buyers to choose areas that have the potential for development in the near future. “This will enable home buyers to find properties that fit into one’s budget and still offer the same social and support infrastructure, as well as connectivity, in the near future,” Chivukula concludes.

There you go, folks. These are all you need about the Indian Real Estate market 2023 and the state of its Return on Investments.

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