The "India Construction Industry Databook Series - Market Size & Forecast by Value and Volume (area and units), Q1 2024 Update" report has been added to ResearchAndMarkets.com's offering.

The construction industry in India is expected to grow by 11.2% to reach INR 25,316 billion in 2024. The growth momentum is expected to continue over the forecast period, recording a CAGR of 9.4% during 2024-2028. The construction output in India is expected to reach INR 36,221.6 billion by 2028.

The burgeoning housing market, coupled with the government's infrastructure push, will drive the industry growth over the medium term. Several new projects have been announced, including the GIFT City in Gujarat, the Surat DREAM City, and the Dholera SIR. Additionally, projects like the Bengaluru-Mumbai economic corridor and the Delhi-Mumbai industrial corridor will also lend growth support to the Indian construction market.

The residential construction market is also projected to record strong growth in 2024. The high economic growth, coupled with expectations of interest rate cuts, will drive the demand for new units. The luxury housing market is also poised to have a strong growth year over the next 12 months in India. In the commercial sector, investment in new data center construction projects is also expected to increase significantly in 2024. All of these factors indicate a strong growth period for the construction market over the medium-term perspective.

The infrastructure boom will lead India to become the third-largest construction market by 2025

The flourishing housing market, coupled with the government's sustained and massive infrastructure push, has driven the construction market growth over the last three to four years. This trend is projected to continue over the medium term in the Indian market, owing to this, the Ministry of Housing and Urban Affairs has stated that the country is set to become the third-largest construction market by 2025.

In the 2024-25 budget, the finance minister allocated US$134 billion for infrastructure development. This is worth 3.4% of the GDP and is higher than the allocation announced during the 2023-24 budget. Alongside this, the sector is also one of the leading recipients of foreign direct investment (FDI).

In 2024, mega construction projects such as the GIFT City in Gujarat, the Surat DREAM City, and the Dholera SIR are expected to aid the infrastructure sector growth. Furthermore, projects like the Bengaluru-Mumbai economic corridor and the Delhi-Mumbai industrial corridor will also support the broader industry growth over the medium term.

Large investments in the renewable energy sector will also aid the construction market growth in India in 2024. Several infrastructure projects, announced by the government, spanning across the states of Jammu and Kashmir, Tamil Nadu, and Uttar Pradesh further indicate the government's commitment to ongoing infrastructure development in the Indian market.

The housing market is projected to continue with high demand and growth in India in 2024

Despite the jump in asking prices and the highest interest rates in six years, the housing market continued to perform well in 2023. In fact, the sector registered all-time high sales as buyers snapped deals. The publisher expects the demand to not only sustain in 2024 but rise even further, although at a slower pace, on the back of high economic growth and expectations of rate cuts in H2 2024.

The fast-growing Indian population and economy are among the leading factors that have driven the demand and supply of homes in the Indian market. Robust government expenditure in the sector is another factor supporting the growth of the residential construction market in India. Over the medium term, the publisher also expects the luxury housing segment to record robust growth in the Indian market. the demand for such units has been on the rise over the last few years.

According to a report from CBRE, the sales of luxury homes in India - priced at INR 40 million - have increased 75% in 2023. This growth in the segment has been largely driven by affluent millennial buyers, who are seeking for a perfect blend of aesthetics, functionality, and sustainability.

Data center construction activities to aid the broader construction market growth in India in 2024

The ongoing digitalization in the Indian market means there is a need for enhanced data center capacity over the next few years. As a result, investment in the sector is poised to increase substantially over the next 12 months in the Indian market. Several new projects have been announced in Q1 2024.

Adani Enterprises, for instance, announced that the firm will invest INR 500 billion over the next 10 years to set up a 1 GW hyperscale data center in Maharashtra. An additional INR 50 billion has been announced for setting up a 100 MW data center in Telangana. The firm is a new entrant in the data center market in India.

CtrlS Datacenters, in October 2023, also announced that it plans to invest US$2 billion over the next six years. The investment will help the firm add 350 MW of AI and cloud-ready hyperscale data centers in India and other Southeast Asian markets. The firm currently is developing a 72 MW project in Chennai, which includes an investment of INR 40 billion.

This report provides a detailed view of market opportunities in the building and infrastructure construction industry at country level. With over 100+ KPIs, covering growth dynamics in building construction, infrastructure construction, construction cost structure analysis and analysis by key cities in India, this databook offering primarily provides data-centric analysis with charts and tables.

Report Scope

This report provides market size and forecast across 40+ construction segments for a period of 10 years from 2019 - 2028 in India.

KPIs covered include the following:

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

India Economic Indicators

India Top Cities Construction Data

India Residential Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Housing type (multi family, single family)
• Key cities (Tier - 1, Tier - 2, Tier - 3 segmentation)
• Price point/income level (luxury, mid-tier, affordable)
• Construction stage (new construction, re-development & maintenance)

India Residential Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Green building by Housing type
• Green building by Key cities
• Green building by Price point/income level

India Commercial Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Office
• Retail
• Hospitality
• Restaurant
• Entertainment
• Sports facility
• Other commercial building construction
• Construction stage

India Commercial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Office green building construction
• Retail green building construction
• Hospitality green building construction
• Restaurant green building construction
• Entertainment green building construction
• Sports facility green building construction
• Other commercial green building construction

India Industrial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units)

• Manufacturing Plants building construction
• Chemical & Pharmaceutical building construction
• Metal & Material Processing building construction
• Construction stage

India Institutional Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Healthcare construction
• Educational construction
• Other building construction
• Construction stage

India Institutional Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Healthcare green building construction
• Educational green building construction

India Infrastructure Construction Sectors: 10- year market size & forecast in value terms by

• Marine and inland water infrastructure
• Utility system construction
• Transportation infrastructure
• Construction stage

India Green Infrastructure Construction: 10- year market size & forecast in value terms

India Construction Cost Structure Analysis: 10- year market size & forecast in value terms

• Cost Analysis by Type (Material, Labour, Equipment, Others)
• By Material & Work Cost: It provides the cost outlook of material costs by type of materials used in construction (Cement, Steel, Sand, Aggregates, Bricks, Wood, Windows Glazing, Flooring, Plumbing, Electrical, Painting, Other Materials)
• By Labour Cost: It provides the cost outlook of labour costs (RCC Construction Work, Masonry and Plastering Work, Plumbing Work, Water Proofing Work, Carpentry Work, Electrical Work, Tile Fixing Work, CATV Antenna Points, Painting Work, Departmental Labour)
• By Type of Construction (New, Re-Development)
• By Material Cost: It provides the cost outlook of material costs by type of materials used in construction (Concreting Sand, Stone Aggregate, Ordinary Portland Cement, Reinforced Concrete (Grade 30 MPA), Reinforced Concrete (Grade 40 MPA), High Tensile Steel bars, Mild Steel Round Bars, Structural Steelwork, Plywood Formwork (1800*900*12mm), Clay Bricks)
• Type of Labour (Skilled Vs Unskilled)

For more information about this report visit https://www.researchandmarkets.com/r/cijfh1

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/20240701358442/en/