India Construction Industry Databook 2025 : Forecasted 8.8% CAGR During 2025-2029, with Indian Construction Market Set to Reach INR 39.10 Trillion by 2029 - ResearchAndMarkets.com

The "India Construction Industry Databook Series - Market Size & Forecast by Value and Volume, Q1 2025 Update" has been added to ResearchAndMarkets.com's offering.

The construction market in India is projected to grow by 11.2% annually, reaching INR 25.31 trillion by 2025. The robust growth observed between 2020-2024, with a CAGR of 14.2%, is set to continue.

With a forecasted CAGR of 8.8% during 2025-2029, the sector's value is expected to climb from INR 22.77 trillion in 2024 to about INR 39.10 trillion by the end of 2029.

This comprehensive report offers a data-centric analysis of the Indian construction sector, particularly focusing on building and infrastructure opportunities.

Featuring over 100 KPIs that explore growth dynamics, cost structures, and city-level insights, the databook equips stakeholders with vital information through detailed charts and tables.

India Residential Construction

The residential construction industry in India is evolving due to macroeconomic factors, government policies, and innovative trends. Despite inflation and material costs driving up housing prices, affordable housing demand remains resilient, particularly in tier-2 and tier-3 cities. Technological advancements are enhancing project execution, although bureaucratic hurdles pose challenges.

The Union Budget 2024's 79,000 crore allocation and rising foreign investment are catalyzing the sector's growth. The push towards smart cities, sustainability, and regulatory reforms is transforming housing, emphasizing energy-efficient solutions. Addressing skilled labor shortages through training is crucial for sustaining growth, making the sector ripe for long-term expansion.

Challenges and Opportunities

• Material costs like cement and steel are inflating housing prices in urban areas, while higher loan interest rates slow demand.
• Supply chain disruptions and raw material shortages delay project timelines, raising developer costs even though affordable housing demand persists.
• Embracing prefabrication and modular methods speeds up project completion, with a growing luxury market in metro areas.

India Commercial Construction

The commercial construction sector sees transformation fueled by demand for mixed-use spaces and premium office developments. Inflation and raw material costs impact finances, and regulatory delays pose execution challenges.

Rising demand for office spaces, coupled with government initiatives like Make in India and tax incentives for REITs, drives growth. Sustainability trends and AI-driven management are shaping future developments. Addressing skilled labor deficits and improving regulatory efficiency remain crucial for sustained growth.

Macroeconomic Factors

• High leasing costs and raw material prices challenge developers, while demand for mixed-use and Grade-A spaces grows.
• Oversupply in metro markets creates competitive pressures, affecting investor confidence due to regulatory hurdles.

Government Policies & Industry-Specific Developments

• Initiatives like Make in India increase office space demand, notably in IT and financial hubs.
• Sustainability emerges as a focus, with eco-conscious practices being increasingly adopted.

India Institutional and Industrial Construction

Both institutional and industrial sectors are expanding, driven by government policies in healthcare, education, and high-tech industries. Rising construction costs, labor shortages, and approval delays challenge execution. Public-private partnerships enhance outcomes, particularly in healthcare and research. Sustainability initiatives are prioritized through solar power and green certifications.

Project Landscape & Industry Developments

• Key projects like AIIMS hospitals and IT campuses strengthen infrastructure across India.
• Industrial growth is fueled by high-tech manufacturing with notable projects like Tata's Semiconductor Plant.

Overall, India's construction market across residential, commercial, institutional, and industrial sectors is on a robust growth path, shaped by government initiatives, technological advancements, and increasing foreign investment. Addressing logistical, regulatory, and labor challenges will be crucial for sustaining this momentum and ensuring long-term success.

Reasons to buy this report:

• Comprehensive Insight into Construction Market Dynamics: Gain a deep understanding of the construction market, including opportunities, industry trends, and key drivers across over 40+ market segments and sub-segments.
• Detailed Analysis of Construction Costs: Explore construction costs broken down by type, including material and labor costs. The report provides detailed information on costs by construction type and worker.
• Top Ten Cities Construction Value: Access valuable data on the construction market size for major cities, focusing on key city-level sectors.
• In-Depth Volume and Value Data: Obtain a thorough understanding of the market from both value and volume perspectives, covering historical data and forecasts by activity and units.
• Strategic Market-Specific Insights: Formulate targeted strategies by identifying growth segments and opportunities and assessing key trends, drivers, and risks within the construction industry.
• City-Level Trend Analysis: Get detailed trend analyses for tier-1, tier-2, and tier-3 cities, offering actionable insights for urban-focused strategies.

Report Scope

This report provides market size and forecast across 40+ construction segments for ten years from 2020 - 2029 in India.

KPIs covered include the following:

• Market size by value
• Market size by volume of construction
• Number of units

Market Data and Insights:

• India Economic Indicators
• India Top Cities Construction Data
• India Residential Building Construction Coverage
• India Residential Green Building Construction Coverage
• India Commercial Building Construction Coverage
• India Commercial Green Building Construction Coverage
• India Industrial Green Building Construction Coverage
• India Institutional Building Construction Coverage
• India Institutional Green Building Construction Coverage
• India Infrastructure Construction Sectors
• India Green Infrastructure Construction
• India Construction Cost Structure Analysis

For more information about this report visit https://www.researchandmarkets.com/r/s3br6g

About ResearchAndMarkets.com

ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250506976475/en/