The real estate market in India continues to be bullish, finishing calendar 2024 on a strong note, registering record leasing and sales as well as displaying a growing appetite for new launches. 2025 is expected to sustain the momentum and grow the market further, driven by technology, forward-looking government policies and shifting lifestyle patterns.
Equity investments in the realty sector last year topped $10 billion, buoyed by robust inflows in commercial spaces and a strong momentum in the residential sector. This trend is expected to continue. All stakeholders, including homebuyers, investors and industry professionals, should keep themselves abreast with this ever-evolving market to get the best deal.
Key trends to look out for in 2025
Housing market buoyed by high demand:
The traction in the residential segment has never been stronger. In the period between January and September last year, over 229,900 units were sold across the country’s seven top cities, registering a significant 17% jump from 2023. The trend of higher demand for mid- and high-end segments is expected to continue through 2025, with the luxury segment showing faster growth than affordable housing.
Popular today:
- Integrated townships with modern amenities
- Smart homes with advanced features like AI-driven security, automated lighting, energy-saving devices, etc.
- Bigger homes for multigenerational living and work from home
Robust growth in office segment:
Ongoing turmoil and uncertainties around the world has not scalded the Indian economy as much. This is reflected in the sustained optimism in India’s office space market, with gross leasing between January and September last year touching a record 53.4 million sq. ft. The IT, engineering and manufacturing sectors have been driving growth in the commercial segment, while India has positioned itself as a major GCC (global capability centres) hub. In 2024, the GCC market grew at a CAGR of over 11%, considerably boosting the office segment.
Popular today:
- High-tech, sustainable Grade A office space
- Flexible office spaces with ‘core plus flex’ model
- Return to work boosting office space demand
Boost for retail & hospitality sectors:
Ever-increasing consumer spending, which touched $1.29 trillion in 2024, continues to power India’s retail segment. Leasing activity is slated to touch 7 million sq. ft. by this yearend, riding on high-growth segments like fashion, food and entertainment. Experiential retail is set to become the caller tune of this sector.
On the ground:
- Exponential growth in domestic travel fueling hospitality growth
- Family entertainment zones attracting footfalls
- Burgeoning disposable income boosting retail
Construction sector thrives on infrastructure explosion:
Powered by the tailwinds of government spending, India’s infrastructure sector has grown phenomenally from around Rs 5 lakh crore in 2021-22 to Rs 11 lakh crore-plus in 2024-25. With roads, railways and aviation at its core, this infrastructure explosion is transforming Indian cities and industry outlook.
On the ground:
- National highway network grew 1.6 times
- Over 1300 railway stations got a facelift
- 84 airports made operational in last decade
Opportunity to invest in new domains:
With the emergence of new asset classes like data centres, shared- and assisted-living spaces and more, a whole new world of investment opportunities has opened up, powered by the new consumer with shifting demographics.
On the ground:
- Data centre capacity set to spike 66% over the next 2 years
- Improved regulatory mechanism boosting sector transparency
- India’s currency as global realty hotspot on the rise
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