Talking Heads: Real Estate Eyes Bigger Slice of Pie in 2025

New Delhi, December 27, 2024: Driven by a surge in demand for luxury housing, green projects, and rising interest across cities the Indian real estate sector recorded high growth in 2024. Building on this momentum, the sector is anticipated to achieve greater growth in 2025. According to a recent report by Knight Frank, titled ‘India Real Estate: Residential and Office (January – June 2024)’, the first half of 2024 observed homes priced at INR1 crore and above representing 41 per cent of the total sales.

Besides, the sector witnessed exceptional growth in Tier II and Tier III cities, largely due to infrastructure development. Knight Frank India reported a 62 per cent rise in residential property prices and a 12 per cent increase in demand for commercial properties in these regions during Q3 2024. Further, green and sustainable projects also stole the spotlight in 2024.

Developers and experts are optimistic about 2025. Yukti Nagpal, Director, Gulshan Group, said, “The year 2024 has been a defining chapter for the real estate sector, marked by unparalleled growth and unwavering resilience. Leading this evolution, the Delhi-NCR region emerged as the epicenter of demand for premium residential spaces.”

Mohit Goel, Managing Director, Omaxe Group, said: “2024 has been a great year for the housing, commercial, and retail segment witnessing an exceptional growth trajectory. Infrastructure upgrades, the renewed focus on home ownership, higher disposable income, and diversifying investment portfolios have led the sector’s growth throughout the year. In particular, Delhi-NCR witnessed a significant surge in luxury housing growth. Besides, the leasing activity for office space and retail recorded new growth numbers in the region. While Gurugram and Noida notably contributed to this growth graph of NCR’s realty market, Faridabad emerged equally promising.”

Sandeep Chhillar, Founder and Chairman, Landmark Group, said: “The demand for housing reached a new peak across cities making 2024 an exceptional year for the real estate sector. Given the upward growth trajectory of the luxury housing segment, we anticipate a strong year ahead driven by positive market sentiments and favorable economic conditions. Gurugram and its emerging corridors are expected to dominate the new supply of luxury housing and its demand in the year ahead.”

Piyush Kansal, Executive Director of Royale Estate Group, said: “In 2024, tier 2 cities have emerged as the new frontier for residential real estate, driven by a mix of improved infrastructure, enhanced connectivity, and the evolving needs of homebuyers seeking both value and quality. Cities like Chandigarh, Mohali, Zirakpur, Panchkula have established themselves as leading destinations for those looking to have a balanced lifestyle and luxury living. As we look towards 2025, we expect Chandigarh’s residential market to continue its upward trajectory, offering opportunities for luxury and sustainable living in a well-connected, progressive city.”

Ravinder Choudhary, Vice President of Vegas Mall, said: “2024 brought a huge transformation for retail real estate, with malls evolving into vibrant community hubs rather than just shopping destinations. Amid rising disposable incomes and demand for experiential spaces, we anticipate this evolution to continue in 2025, with more innovative, multi-functional mall projects reshaping the retail experience.”

Ashwani Kumar, Pyramid Infratech, said, “The real estate sector in 2024 has grown exceptionally well with developing areas emerging as new markets. The luxury segment driven by evolving consumer preferences, and rising disposable income played a significant role in this growth graph across cities. Gurugram’s luxury home market witnessed an outstanding year paving the way for new markets to emerge growth frontiers in the year ahead. Improved infrastructure, like the development of new expressways, metro lines, and business hubs, has enhanced connectivity, making previously underserved areas more appealing to luxury buyers. These factors will continue to benefit the city’s real estate market.”

Ambika Saxena, Director, Corporate Communications, Bayside Corporation, said: “Looking ahead to 2025, the luxury real estate market in India is set to witness continued growth, driven by the increasing demand from high-net-worth individuals (HNIs) and non-resident Indians (NRIs). This demand reflects a shift towards premiumisation, with buyers increasingly seeking larger, more exclusive homes with state-of-the-art amenities and privacy. Developers will need to adapt to these evolving preferences, focusing on delivering not just luxury, but a living experience that meets the high expectations of today’s affluent market.”

With the foundation laid in 2024, the Indian real estate market is well-positioned to achieve remarkable growth in 2025. Developers are ready to launch projects that cater to evolving customer preferences, emphasizing luxury, sustainability, and technological innovation. This optimism ensures that the sector will continue its upward trajectory, making 2025 a pivotal year for Indian real estate.

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