Indian real estate in 2024 proved its mettle, balancing global uncertainties with innovation, sustainability, and adaptability. From smart infrastructure to hybrid workspaces, the sector evolved alongside changing consumer expectations. Looking ahead to 2025, cautious optimism prevails, with tech-driven transformations, urban regeneration, and community-focused projects promising a brighter future for developers, investors, and homeowners alike.
How did Indian Real Estate fare in 2024?
If someone had told me a decade ago that I’d witness buildings go from brick-and-mortar dreams to sustainable, smart havens, I’d have laughed. But here we are in 2024, a year that saw India’s real estate sector withstand the weight of inflation, global economic jitters, and shifting lifestyles.
From green-certified luxury homes to hybrid workspaces in buzzing metros, 2024 wasn’t just about building properties—it was about building resilience, sustainability, and a roadmap for 2025. Shall we take a closer look at how this sector danced through challenges and what lies ahead?
Why did sustainability become a game-changer in 2024?
What stood out this year was the rise of eco-consciousness. Builders were no longer just selling homes; they were offering promises of sustainable living. The National Real Estate Development Council reported a 25% increase in demand for green-certified projects, driven by a mix of regulatory mandates and consumer awareness.
I met a young couple in Mumbai who said their dream home wasn’t just a luxury apartment but one that could breathe—literally! They finally bought a flat in a solar-powered community, complete with rainwater harvesting and vertical gardens.
Key statistics:
- Green buildings contribute to 30%-50% energy savings, according to the Indian Green Building Council.
- 60% of urban buyers prioritised eco-friendly features over other amenities in 2024.
What changed in the commercial real estate space?
Office designs saw dramatic shifts as businesses downsized traditional layouts, opting for flexible co-working spaces. Bengaluru alone recorded a 35% surge in demand for co-working leases, according to JLL.
Interesting insight:
Gurugram, once known for its rigid corporate blocks, is now buzzing with café-style workspaces. I once overheard a co-worker joke, “Is this a co-working space or a coffee shop with laptops?”
Also read: Vastu-creating a financially thriving office: Practical tips for prosperity and productivity
India’s Office Real Estate Market on Track to Hit Record 85 Million Sq Ft Leasing in 2024
This year has been nothing short of remarkable for India's office real estate sector. According to Cushman & Wakefield, gross leasing volumes are set to soar by 14%, reaching a historic high of 85 million square feet, compared to 74.6 million square feet in 2023. This milestone underscores the sector's robust recovery and sustained momentum.
Why is this growth significant?
The growth in leasing reflects rising business confidence, particularly from industries like IT-BPM, BFSI, engineering, and manufacturing, as well as the growing impact of Global Capability Centres (GCCs). GCCs alone are projected to account for nearly 30% of total leasing in 2024, showing their crucial role in driving demand.
Expert opinions on 2024’s record performance
- Navin Makhija, Managing Director, The Wadhwa Group, commented, “The robust momentum in office leasing reflects the strength and resilience of India’s business ecosystem. Demand for high-quality office spaces in prime locations underscores the confidence of global and domestic players.”
- Shraddha Kedia-Agarwal, Director, Transcon Developers, highlighted, “This milestone of 85 million square feet reflects buoyant market sentiment. Occupiers prioritise Grade A, well-located spaces with modern amenities.”
Key drivers of growth
- Fresh Leasing Momentum: Fresh leasing accounts for 70% of projected gross leasing volumes.
- Sectoral Expansion: IT-BPM, BFSI, and manufacturing sectors continue to grow.
- Infrastructure Development: Better connectivity and modern office supplies are boosting demand.
Future outlook
As demand grows, rents in key micro-markets are under moderate upward pressure. Developers are focusing on Grade A assets and tech-driven solutions, which are expected to sustain the momentum in 2025. Experts like Abhishek Jain, COO, Satellite Developers Private Limited, predict a steady rise in rents and growing interest in flexible, sustainable office spaces.
Did affordable housing finally get a boost?
Yes, and how! The Pradhan Mantri Awas Yojana delivered nearly 15 lakh new affordable housing units in urban and semi-urban areas. With interest subsidies and simplified housing loans, first-time buyers in Tier-2 cities like Indore and Surat found opportunities to secure homes.
According to CREDAI, the affordable housing segment grew by 18% in 2024, spurred by both government support and a genuine desire for stability post-pandemic. However, luxury housing is where the markets are seeing maximum potential and action.
Must read: Shocking facts about clutter that will transform your life (And your space!)
How are Tier-2 and Tier-3 cities redefining real estate?
Who said metros get all the glory? Cities like Ahmedabad, Jaipur, and Kochi outperformed metros in price appreciation, with some areas witnessing a 20%-25% rise in property values. Improved infrastructure, proximity to major hubs, and lower living costs made these cities irresistible.
A realtor in Jaipur shared with me, “Earlier, we pitched Jaipur as a cultural city. Now we sell it as the future city for tech-savvy, eco-conscious millennials.”
What challenges did 2024 throw at developers?
- Rising Costs: Construction costs jumped by 12%-15% due to inflation.
- Regulatory Delays: Real estate projects faced average delays of 10-12 months.
- Climate Risks: Builders had to rethink materials and designs to tackle extreme weather events.
“2024 underscored the need for real estate developers to embrace innovation not as a choice but as a survival strategy.” — Economic Times
What does 2025 hold for Indian real estate?
Here is the silver lining:
- Technology integration: AI and IoT will revolutionise how we buy, sell, and live. Imagine homes that adjust lighting and energy usage based on your preferences.
- Luxury Reimagined: Think homes with not just private pools but AI-curated interiors tailored to your lifestyle.
- Community-Led spaces: Expect vibrant urban hubs that integrate living, working, and leisure seamlessly.
Expert’s take
Vikas Sutaria, Founder, Iraah Lifespaces
" Infrastructure Revolution and the Rise of Second Homes
One of the most significant game-changers this year has been the commencement of the Mumbai Trans Harbour Link (MTHL). This infrastructure project has not only enhanced connectivity between Mumbai and Navi Mumbai but has also opened up new avenues for investment, particularly in the second-home and holiday home markets. With easier access more individuals are exploring these areas as potential getaway spots, creating a surge in demand for properties in locations like Alibaug and Lonavala.
Alibaug and Lonavala: The New Real Estate hotspots
Alibaug and Lonavala have emerged as the prime investment destinations, attracting celebrities and investors seeking peaceful retreats. The unique appeal of these areas—complete with natural landscapes, and proximity to Mumbai—has made them a coveted choice for luxury investments.
Evolving aspirations and the demand for lifestyle Amenities
Today’s homebuyers seek more than just a place to live—they want spaces that reflect their evolving lifestyles. Luxury homes now emphasize state-of-the-art wellness facilities, expansive open spaces, and world-class amenities, prompting developers to integrate these features into their projects.
Surge in Luxury Housing: Villas Lead the Way
Luxury housing has witnessed an upswing in demand in 2024, with villa projects standing out as a particular area of growth. Once reserved for the ultra-wealthy, villas are now a sought-after option for high-net-worth individuals looking for a more exclusive and personalized living experience.
Outlook for 2025: A Year of promise
While the outlook for 2025 looks bright, it is essential to acknowledge that government support—such as GST waivers and tax incentives are crucial to sustaining this growth. Government sops are instrumental in driving demand, ensuring that developers meet the expectations of discerning buyers while offering luxury homes.
With infrastructure projects like the MTHL now operational, the demand for second homes and luxury properties in coastal and hill stations will continue to rise. The focus on wellness, sustainability, and innovative designs will further reshape the luxury housing sector, presenting exciting opportunities for both investors and developers.
As we move into 2025, we remain committed to delivering aspirational homes that cater to the changing needs of the clients. We are excited about the opportunities the new year will bring and look forward to being part of the next phase of growth in the Indian real estate sector."
Vedanshu Kedia, Director, Prescon Developers
Infrastructure has been a defining theme of 2024. Game-changing projects like the Metro and the Coastal Road have redefined accessibility and convenience, particularly in south Mumbai, central Mumbai and the western suburbs of Mumbai. These developments have not only enhanced the quality of life but have also bolstered property values, making the suburbs a hotspot for residential investments. From a liveability perspective, if executed well, these massive infrastructure projects will put Mumbai on the map of the Top 10 global cities.
Key Trends in 2024: What shaped the market?
Homebuyer preferences have undergone a significant shift this year. The demand for larger living spaces, lifestyle amenities, and branded developers has surged. Projects nearing completion have become a top priority, as buyers seek immediate possession and assurance of timely delivery. This inclination reflects a growing consumer desire for convenience, quality, and trust in reputed developers.
Another noteworthy trend has been the rise in demand for senior living communities. Places like Goa, with their serene environments and modern healthcare facilities, have emerged as prime destinations for this niche yet rapidly growing segment.
Outlook for 2025: A Year of Transformation and Opportunity
Looking ahead, redevelopment will continue to shape the skyline of metro cities. South and Central Mumbai, with their strategic locations and potential for high returns, are set to lead the charge. For developers, the focus will remain on creating future-ready spaces that align with the evolving needs of urban residents.
We also foresee a sustained demand for spacious homes with premium lifestyle amenities. Developers who can blend luxury with functionality and offer timely delivery will have a competitive edge. The growing interests in senior living will likely extend beyond Goa, as more regions adapt to cater to this unique segment. As we step into 2025, the real estate sector stands resilient and prepared for a year of opportunities."
Anil Mutha, Co-Founder, Nandivardhan Group
Abhishek Jain, COO - Satellite Developers Private Limited (SDPL)
Samyak Jain – Director, Siddha Group
Mumbai continues to evolve as a real estate hotspot, driven by robust infrastructure upgrades, shifting consumer preferences, and proactive government reforms.
Infrastructure: The Backbone of Urban Growth
In 2024, major infrastructure projects like the Atal Setu, expanding metro network, and new road connectors significantly enhanced connectivity, reducing commute times and making peripheral locations more accessible. These upgrades boosted demand in micro-markets along these corridors, transforming them into prime residential destinations.
The Rise of Affordable luxury
A notable trend in 2024 was the rising demand for affordable luxury homes—larger living spaces with premium amenities at well-connected locations. Buyers increasingly prioritize wellness features, sustainability, and thoughtfully designed homes that balance comfort and style.
Evolving Aspirations: Redefining Urban Living
Homebuyers are seeking more than just homes—they aspire for unique experiences and innovative amenities such as smart technologies, green living initiatives, and wellness-focused designs. Developers have responded with projects that redefine luxury in the urban context, catering to these elevated expectations.
Proactive Government Reforms: Catalysts of Growth
Government measures in 2024, including streamlined approvals, transparency, and tax incentives for sustainable projects, bolstered the real estate sector, attracting investments and instilling confidence among stakeholders.
Looking Ahead to 2025
With a strong foundation laid in 2024, Mumbai’s real estate market is poised for even greater growth. The city’s infrastructure advancements are expected to unlock new growth corridors, while the continued focus on sustainability and wellness will shape the future of urban living. Affordable luxury homes are likely to dominate the market as homebuyers continue to prioritize larger spaces, better amenities, and well-connected locations.
Developers are committed to aligning with these trends by delivering projects that cater to the aspirations of today’s homebuyers. By integrating luxury, wellness, and sustainability, we aim to contribute to the evolving urban narrative and meet the expectations of a discerning audience.
As we step into 2025, the journey ahead looks promising. Mumbai is ready to embrace a future where real estate isn’t just about constructing buildings but about creating enduring lifestyles.
Rohan Khatau, Director, CCI Projects
"As 2024 concludes, the real estate sector emerges as a beacon of resilience and innovation, reflecting the evolving aspirations of homebuyers and the strides developers have made in redefining urban living. Sustainability has shifted from being a luxury to a core component of contemporary housing, with buyers seeking eco-friendly features like energy-efficient designs, rainwater harvesting, and solar solutions. These preferences align with an eco-conscious generation while reducing environmental footprints.
The post-pandemic emphasis on wellness-oriented spaces has reshaped homebuyer priorities. Modern designs now focus on layouts that enhance natural light, ventilation, and vastu compliance, alongside amenities like yoga decks, meditation zones, and landscaped gardens that promote holistic living. These elements offer a much-needed sanctuary amidst urban chaos.
Technology has further revolutionized the housing experience, with smart home systems, app-controlled security, and energy-monitoring solutions becoming standard expectations. These innovations provide convenience, safety, and efficiency, blending functionality with modernity.
Connectivity remains a decisive factor in real estate, with infrastructure developments like coastal roads and intercity tunnels enhancing urban mobility. Homebuyers prioritize proximity to metro stations, highways, and cultural hubs for daily convenience and location appeal. Our flagship project, Rivali Park, exemplifies this, offering exceptional connectivity and adding value to residents' lives.
Mixed-use developments, blending residential, retail, and commercial spaces, are gaining popularity as they transform suburbs into vibrant micro-destinations. These self-sustained ecosystems cater to modern urban lifestyles while fostering a strong sense of community.
As we look to 2025, the demand for spacious, thoughtfully designed homes continues to rise. Buyers favor features like expansive balconies, open living areas, and walk-in wardrobes that balance functionality and aesthetics. Vibrant communities with wellness, recreational, and co-working spaces further enhance residential experiences, fostering interaction and belonging.
The concept of affordable luxury also remains significant, as developers innovate to offer premium features at competitive price points.
Govind Krishnan Muthukumar, Managing Director & Co-founder, Tridhaatu Realty
"As we step into the promising horizon of 2025, it is evident that the real estate sector has undergone a transformative year, marked by progress, resilience, and renewed optimism. The industry has successfully navigated challenges while seizing opportunities, propelled by significant developments in infrastructure, proactive government reforms, and evolving consumer preferences.
Infrastructure: The backbone of Real Estate Growth
2024 has been a landmark year for infrastructure in India, with several existing and new projects reaching critical milestones. Mega initiatives such as the expansion of Metro networks, construction of new flyovers, and seamless connectors have drastically improved connectivity in urban and suburban regions. These developments have not only reduced commuting times but have also opened up new micro-markets for real estate, driving demand across various price points. Areas that were once considered peripheral are now gaining traction, thanks to enhanced accessibility.
Government Reforms Pave the Way
The government's proactive stance has been instrumental in shaping a conducive environment for real estate. Policies promoting affordable housing, streamlining regulatory approvals, and fostering ease of doing business have empowered developers to bring high-quality projects to market.
Homebuyer Sentiments Drive Demand
One of the defining trends of 2024 has been the resurgence of positive homebuyer sentiments. The aspiration for home ownership has gained momentum, fueled by stable economic conditions, attractive interest rates, and government incentives for first-time buyers. Consumers are increasingly prioritizing bigger homes with state-of-the-art amenities, reflecting a shift in lifestyle preferences post-pandemic. Developers who have adapted to these changing needs by offering well-designed homes with better space utilization and a host of conveniences have seen robust demand.
The Rise of Trusted and branded Developers
In a market where trust is paramount, homebuyers are gravitating toward branded and reliable developers. The ability to deliver on promises, maintain quality standards, and provide timely possessions has become the key differentiator in a competitive landscape. We have observed a strong preference for reputed names, as buyers seek assurance and long-term value in their investments. This trend underscores the importance of integrity and customer-centricity in sustaining growth and fostering loyalty.
Outlook for 2025: Sustained Momentum and Innovation
As we step into 2025, the real estate sector is poised for sustained momentum. With infrastructure projects continuing to unlock potential, government reforms further strengthening the ecosystem, and evolving buyer preferences reshaping demand dynamics, the coming year holds immense promise. Developers must remain agile, innovate, and prioritize customer satisfaction to stay ahead in an increasingly discerning market.
The vision for 2025 should be to blend sustainability, aesthetics, and functionality, creating spaces that are not just homes but enriching experiences for the customers.
In conclusion, 2024 has been a year of milestones, learning, and renewed optimism. As we welcome 2025, we look forward to leveraging the opportunities ahead and continuing to drive meaningful contributions to India's real estate landscape.
Vaibhav Kathotia, Chief Operating Officer - Real Estate, Crest Ventures Limited
Prashant Sharma – President, NAREDCO Maharashtra
Technological transformation
Urbanization and infrastructure growth
Attracting global investments
Changing consumer preferences
Enakshi Priyam, Chief Operating Officer, Assotech Group
Navin Makhija, Managing Director, Wadhwa Group
Shraddha Kedia-Agarwal, Director, Transcon Developers
Frequently asked Questions
- What were the top trends in Indian real estate in 2024?Sustainability, hybrid workspaces, and affordable housing topped the list.
- How did Tier-2 cities perform in 2024?Tier-2 cities outperformed metros with higher appreciation rates, thanks to infrastructure development and affordable options.
- What is the outlook for real estate in 2025?Cautious optimism prevails, with tech-driven innovations, interest rate cuts, and government policies promising growth.
At its core, real estate is about more than just bricks and mortar; it is about building communities, fostering economic growth, and creating spaces that resonate with the people who live, work, and invest in them.
2024 proved that Indian real estate isn’t just about bricks and mortar; it is about creating spaces that adapt, inspire, and endure. With a focus on sustainability, technology, and community-driven living, the sector is set for exciting possibilities in 2025. Let us embrace the future, one thoughtful project at a time.
Tushar Mangl is an energy healer, vastu expert, and author of Ardika. Passionate about sustainable living, he writes on topics like real estate, personal finance, mental health, and the art of balanced living.
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