India's Residential Construction Industry to Reach $166 Bn by FY2030: Deloitte The growth is further poised to be aided by government programmes such as the Pradhan Mantri Awas Yojana, which has already delivered over 28 million homes and allocated USD 130.57 billion in the 2021–24 funding.
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The residential construction industry, which grew at 6.8 per cent during FY2024–25, is poised to reach USD 350 billion by 2030, according to a report by Deloitte India titled Building beyond basics.
The report says that nearly half of home-related purchases are now motivated by lifestyle upgrades or product obsolescence, while price ranks lower by 25 per cent, compared with quality, sustainability, and overall purchase experience. 86 per cent of consumers prefer branded outlets or experience centres for high-involvement purchases, and many are willing to pay more for eco-friendly, customised and branded materials, according to the report.
The growth is further poised to be aided by government programmes such as the Pradhan Mantri Awas Yojana, which has already delivered over 28 million homes and allocated USD 130.57 billion in the 2021–24 funding.
The report suggests that the surge is not merely quantitative, but reflects a qualitative transformation in how Indian households conceive their living spaces. Rising disposable incomes and a burgeoning middle class are driving a "premiumisation" wave, where consumers favour high-performance and low-maintenance products.
The report notes that the smart home market alone has posted a CAGR of approximately 30 per cent between 2025 and 2030, fuelling demand for AI-enabled electrical devices, sensor-integrated lighting, and energy-efficient roofing solutions.
Praveen Govindu, Partner, Deloitte India, said that India's construction and building materials industry is at an inflection point, one where aspirations, technology, and sustainability converge to reshape the way we live. He added that the building materials market alone will witness a 9.6 per cent increase from USD 105 billion in FY2025 to USD 166 billion in FY2030.
"As rising incomes and urbanisation fuel demand for smarter and greener living spaces, the sector is no longer about homes alone, but about experiences, lifestyles, and future-ready communities. The brands that can anticipate these shifts, innovate with purpose, and embed sustainability at scale will not just ride this growth wave; they will set the benchmarks for India's journey to a USD 350 billion market," said Govindu.
