Mumbai, Dec 29 As the Indian real estate sector undergoes transformative changes, driven by evolving consumer expectations, technological advancements, and government initiatives, collaboration between developers, policymakers and stakeholders will be essential to address the growing demand for quality housing, sustainable practices and cutting-edge technology in 2025, according to industry experts.
According to Prashant Sharma, President, Maharashtra National Real Estate Development Council (NAREDCO), affordable housing remains a cornerstone of India’s real estate agenda, with the government’s continued emphasis on schemes like PMAY (Pradhan Mantri Awas Yojana) driving momentum in this segment.
“2024 saw steady progress in making homeownership accessible to the middle and lower-income groups. However, meeting the dual challenges of affordability and quality will require innovative solutions in 2025. Developers must adopt cost-effective construction techniques and collaborate with policymakers to bridge the demand-supply gap,” he mentioned.
Sustainable and green buildings are quickly becoming the standard. According to Sharma, in 2024, we witnessed a significant shift toward eco-friendly practices as developers embraced green construction technologies, energy-efficient designs, and sustainable building materials.
“Homebuyers and investors are increasingly valuing projects that offer long-term environmental and economic benefits. This trend will only grow stronger in 2025, as sustainability evolves from being a differentiator to an industry imperative,” he noted.
Rapid urbanisation and infrastructure development have been pivotal in shaping the real estate market this year.
Projects such as metro expansions, expressways, and smart cities have fueled demand for residential and commercial spaces in metropolitan and suburban areas.
The momentum is expected to continue in 2025, with developers focusing on creating integrated townships and mixed-use developments that cater to the needs of a growing urban population, said experts.
India’s real estate sector has also emerged as a preferred destination for foreign investment, bolstered by regulatory reforms and a burgeoning middle class.
The private equity (PE) investments in the Indian real estate sector reached $4.2 billion in 2024, marking a 32 per cent year-on-year (YoY) growth amid high demand in the warehousing segment, according to a Knight Frank India report.
In 2024, we saw increased interest from institutional investors and sovereign wealth funds, particularly in commercial and warehousing spaces.
Looking ahead, maintaining transparency, improving ease of doing business, and delivering consistent returns will be crucial to sustaining this momentum and further boosting global investor confidence, said industry experts.
Shishir Baijal, Chairman and Managing Director of Knight Frank India, said that India has seen a rise in investments, particularly over the past decade, driven by economic stability and consistent growth.
As these trends unfold, they bring both challenges and opportunities for the real estate sector and 2025 will require industry leaders to adapt, innovate, and remain attuned to the shifting dynamics of the market.
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