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?
Hybrid work isn’t just a buzzword; it’s a movement. 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?”
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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.
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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’s 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
Vaibhav Kathotia, Chief Operating Officer - Real Estate, Crest Ventures Limited
Vaibhav Kathotia remarked, “2025 is all about striking the perfect balance between tradition and innovation, paving the way for sustainable growth.”“As 2024 draws to a close, it is clear that the real estate sector in India has shown remarkable resilience in navigating a complex landscape shaped by global economic headwinds and shifting consumer preferences. This year has been pivotal in redefining what it means to create living and working spaces that are not only luxurious but also adaptable and future-proof.
One of the defining trends in 2024 was the rising emphasis on sustainability and smart infrastructure. Across both residential and commercial segments, we have seen a surge in demand for eco-friendly designs that prioritize energy efficiency and minimize environmental impact. Buyers today are more discerning, valuing properties that offer green certifications, sustainable materials, and innovative amenities designed for long-term living. This shift has been driven not just by regulatory changes but by a broader societal commitment to responsible development.”
“Another key transformation has been the way we work. The pandemic accelerated a shift towards hybrid work models, and in 2024, this trend continued to reshape commercial real estate. Co-working spaces and flexible office formats have become essential to meet the needs of businesses looking for agility and scalability. This shift has had a ripple effect across urban centers, driving demand for mixed-use developments that seamlessly integrate living, working, and leisure spaces. Cities like Mumbai, Bengaluru, and Gurugram have emerged as hubs for these dynamic environments, reflecting a broader trend of urban regeneration.”
“As we step into 2025, the outlook for the real estate sector is one of cautious optimism. While global economic uncertainty persists, there are positive signals, including expectations of interest rate cuts and a renewed focus on infrastructure investments. The government’s push for affordable housing and urban renewal projects will play a role in driving growth. Luxury real estate will continue to evolve, with a focus on bespoke experiences and state-of-the-art amenities tailored to the needs of an increasingly global clientele.”
“Technology will be a game-changer in 2025. The integration of AI, IoT, and data-driven insights into real estate planning and development will enhance efficiency and improve decision-making across the board. From smart buildings that optimize energy usage to digital platforms that streamline property transactions, innovation will be at the heart of the sector’s progress. For developers and investors alike, staying ahead of these trends will be crucial in delivering value.”
“The success of real estate in 2025 will hinge on our ability to balance innovation with tradition, creating spaces that honor the past while embracing the future. As we continue to navigate an evolving landscape, the focus must remain on delivering projects that enhance community living, foster connectivity, and promote sustainability. I am optimistic about the opportunities that lie ahead for all stakeholders committed to shaping India’s urban fabric.”
Enakshi Priyam, Chief Operating Officer, Assotech Group
"This year, several trends have shaped the real estate industry this year -
Sustainability and innovation: Clients are more aware of their environmental footprint, prompting us to integrate sustainable practices, from energy-efficient designs to greener construction methods like MIVAN FORMWORK.
Luxury and affordability: The balance between offering luxurious living experiences while maintaining affordability has been critical.
Technological integration: The application of smart technologies in real estate is no longer a luxury but a necessity."
Navin Makhija, Managing Director, Wadhwa Group
"India’s real estate sector is experiencing significant growth, fueled by the country’s strong economic performance and position as one of the top destinations for Foreign Direct Investment (FDI). Foreign capital has flowed in at a remarkable pace, with global investment firms like Blackstone and GIC acquiring major assets, reflecting growing international confidence in India’s real estate market. In addition, the rise of Real Estate Investment Trusts (REITs) has further strengthened the sector, boosting liquidity and drawing more investors to India's real estate landscape.
All segments of the real estate industry are performing well which includes affordable housing, luxury housing, commercial spaces, malls, and warehousing. Affordable housing, in particular, is seeing significant growth, fueled by key infrastructure projects like the Atal Setu, Coastal Road, and Multimodal Corridor, Navi Mumbai International Airport along with improved metro and rail connectivity. In addition, government initiatives such as reduced stamp duties and attractive home loan offers are making homeownership more accessible, further boosting demand in this segment.
Meanwhile, luxury housing has experienced a boom, with record-breaking sales driven by a strong stock market performance and increased consumer confidence. As wealth grows, demand for premium living spaces has also increased, marking a key trend in the housing market. The commercial real estate sector is also witnessing increased demand, as businesses seek larger and more sophisticated office spaces to attract and retain top talent. The growing economy and evolving work dynamics have fueled this trend, making high-quality office environments a priority for businesses across sectors.
India’s real estate market is booming across all categories, fueled by strong economic growth, infrastructure development, foreign investment, and shifting market dynamics. This momentum shows promising signs of continuing well into the future, contributing to both the country’s economic development and burgeoning real estate landscape."
Shraddha Kedia-Agarwal, Director, Transcon Developers
As we bid farewell to 2024, it is worth reflecting on a transformative year for the real estate sector in Mumbai. The city witnessed unprecedented advancements, driven by a combination of robust infrastructure development, evolving homebuyer aspirations, and an influx of NRI investments. These dynamics have not only redefined the urban landscape but also set the stage for a promising 2025.
The Infrastructure Revolution: A Catalyst for Demand
This year, Mumbai saw remarkable progress in infrastructure projects, including expanded Metro connectivity and the much-anticipated Coastal Road. These developments have significantly enhanced accessibility across the city, particularly in emerging residential and commercial hubs. For instance, the improved connectivity in the western suburbs has made areas like Santacruz, Andheri, Goregaon, and Malad more attractive for homebuyers and businesses alike. Such infrastructure upgrades are more than logistical improvements—they are transformative enablers that boost real estate demand and unlock new opportunities.
The Shift Towards Larger, Lifestyle-Focused homes
2024 also marked a notable shift in homebuyer preferences, with an increasing demand for larger homes and projects centered around lifestyle enhancement. The post-pandemic era has reshaped priorities, with homebuyers valuing space, comfort, and holistic living. At Transcon Developers, we have observed this trend firsthand, with more families seeking homes that cater to their aspirations for a better quality of life. Projects that integrate open spaces, recreational amenities, and wellness-centric features have gained immense traction, reflecting the city’s growing appetite for lifestyle-focused developments.
Commercial Real Estate: A New Growth Chapter
Infrastructure development has not only driven residential growth but has also revitalized Mumbai’s commercial real estate sector. The western suburbs, in particular, have emerged as thriving business destinations, with seamless connectivity fostering a conducive environment for corporate offices, co-working spaces, and retail establishments. This alignment of infrastructure and business needs is pivotal for sustaining the city’s economic momentum and further solidifying its position as a global business hub.
Surge in NRI investments
Another noteworthy trend in 2024 was the rise in NRI investments in Mumbai’s real estate. This surge can be attributed to several factors: the weakening of the Indian rupee, the city’s growing reputation as a stable and lucrative investment destination, and enhanced transparency through regulatory reforms. NRIs are not only viewing Mumbai as a financial opportunity but also as a gateway to reconnect with their roots, with many investing in luxury homes that offer modern amenities and a global lifestyle.
Outlook for 2025: Building on Momentum
The outlook remains optimistic for 2025. The continued emphasis on infrastructure development, coupled with an increasingly discerning and aspirational homebuyer base, will drive innovation in real estate offerings. Developers must focus on integrating sustainability, technology, and lifestyle elements to meet these evolving expectations. Additionally, Mumbai’s commercial real estate segment is poised for further expansion, supported by global investments and the city’s inherent dynamism.
As we look ahead, the real estate sector stands at the cusp of new opportunities, contributing to Mumbai’s growth story by delivering projects that resonate with the city’s evolving aspirations."
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.
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.
Author Bio
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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