Real estate sector will contribute around 15% of the GDP by 2030: Sanya Runwal

In an exclusive interaction with Adgully, Sanya Runwal, Director - Marketing & Retail at Runwal Realty, discusses the performance of the real estate industry in 2024 compared to the previous years, the primary factors driving the increased demand for luxury and premium housing in India, how sustainability is influencing design and development decisions across residential and commercial real estate. Additionally, she sheds light on the major shifts observed in consumer preferences since the pandemic.

What do you think are the primary factors driving the increased demand for luxury and premium housing in India, particularly in urban markets?

India’s economic resilience and rising wealth has translated into higher disposable incomes, prompting affluent buyers to invest in luxury real estate as a means of wealth preservation and lifestyle enhancement. 

This trend is most evident in metros and especially in Mumbai, where the luxury housing segment has outperformed all other categories. While the luxury housing trend is now visible across the city, it is especially noticeable in areas like South Mumbai, Bandra and Andheri West, which have emerged as hotspots despite scarcity of land due to their prime location, world-class infrastructure and modern residential spaces.

Luxury properties also offer an attractive investment potential, consistently delivering strong returns, both in terms of capital appreciation and rental yields. This has led to rise in investments by NRIs too, who are drawn by improved mobility and quality of life as well as favourable exchange rates.

Runwal Realty has consistently kept pace with evolving consumer needs by building future-ready housing. For instance, Runwal The Residence at Nepean Sea Road offers large, column-free layouts and sea-facing views, and Runwal Elegante in Andheri West features India’s first sky promenade. All our projects also provide spaces for home offices, fitness zones and recreational areas.

Lastly, branded residences that offer assurance of craftsmanship and timely delivery are gaining traction among conscientious homebuyers. Our upcoming luxury projects in Worli and Walkeshwar are designed to align with their needs.

Commercial real estate transactions have hit record highs this year. How is your company positioning itself to leverage this momentum?

The growth of India’s commercial real estate sector is a strong indicator of the country’s robust economic performance. Mumbai, in particular, has emerged as a hub for startups and established corporations, driving the demand for premium office spaces in key business districts.

At Runwal Realty, we are strategically expanding our footprint in the commercial segment by developing spaces that prioritize functionality, sustainability, and long-term value. A prime example is R Square, a strategically located development with eco-conscious designs. R Square is a testament to our commitment to sustainability. Already 95% leased out, it reflects the growing demand for thoughtfully designed commercial spaces that align with modern business needs.

How is sustainability influencing your design and development decisions in both residential and commercial real estate?

Sustainability has become a cornerstone of Runwal Realty’s design and development philosophy across both residential and commercial real estate. We prioritize eco-friendly practices by integrating energy-efficient systems, rainwater harvesting, and waste management solutions into our projects. Green building certifications guide our efforts, ensuring reduced environmental impact while enhancing occupant well-being. By incorporating ample green spaces, sustainable construction materials, and smart technologies, we’re not only minimizing our ecological footprint, but also creating future-ready developments that align with the evolving expectations of environmentally conscious buyers.

What major shifts have you observed in consumer preferences since the pandemic, and how have you adapted to them?

Since the pandemic, we’ve observed a significant shift in consumer preferences, with homebuyers prioritizing space, wellness, and community living more than ever before. The demand for larger homes with dedicated areas for work, fitness, and leisure has grown exponentially. Buyers are now looking beyond just a place to live—they seek holistic environments that support their physical and mental well-being. Proximity to green spaces, world-class amenities, and integrated developments that minimize travel for daily needs have become key decision-making factors.

At Runwal Realty, we’ve adapted by designing projects that cater to these evolving needs. Our developments now emphasize open layouts, multi-functional spaces, and extensive lifestyle amenities, including wellness zones, recreational facilities, and green landscapes. We’ve also incorporated advanced health and safety features, ensuring a sense of security for residents. Additionally, our focus on creating self-sustained communities—where residents can live, work, and unwind within the same ecosystem—has resonated strongly with post-pandemic buyers, making our projects even more relevant in today’s market.

How would you describe the performance of the real estate industry in 2024 compared to previous years?

The Indian real estate industry maintained its strong momentum from 2023, demonstrating impressive growth in 2024, with projections suggesting the sector will contribute around 15% of the GDP by 2030. This growth is driven by India’s robust economic expansion, accelerated urbanization, and rising demand for both residential and commercial properties. A favorable policy environment, streamlined regulatory frameworks, and large-scale government transportation projects have further facilitated this shift.

In Mumbai, while overall housing sales saw a 5% growth in FY24, the housing segment, particularly properties above Rs 1 crore, stood out with a remarkable 41% year-on-year growth. This shift in consumer preferences is influencing new launches, with a clear focus on high-end offerings. In response to this growing demand, Runwal Realty acquired a prime 4-acre land parcel in Worli for Rs 800 crore in October. We plan to develop a luxury residential project here with an estimated revenue potential of Rs 8,000 crore, further strengthening our position in the high-demand luxury segment.