2024 Indian Real Estate Trends, Triumphs and Transformations
The Indian real estate sector in 2024 has undergone transformative shifts, driven by economic resilience, rapid urbanisation, and evolving consumer preferences. Despite global economic challenges, India’s real estate market exhibited remarkable growth across various asset classes, particularly in luxury housing and commercial spaces. Analysts and experts agree that the year marked a new high, with record numbers of initial public offerings (IPOs) in the real estate sector and foreign direct investment (FDI) inflows achieving historic levels. This growth was largely concentrated in the infrastructure and housing sectors, where sustained demand and government support contributed to the upward trajectory.
Infrastructure development played a pivotal role in the market’s expansion. Neeraj Bansal, Partner & Head at KPMG in India, emphasised the sector’s robust performance, underscoring the importance of infrastructure improvements, stable interest rates, and rising incomes. These factors, combined with growing consumer demand for high-end residential properties, helped accelerate growth in both urban hubs and Tier 2 cities. The shift towards luxury real estate, with properties ranging from INR 10–80 crore, particularly in high-rise condominiums, stood out as a defining trend in 2024. Commercial real estate also saw significant absorption, with a 30% increase in office space uptake in India’s top cities, driven by hybrid work models, cost-effective solutions, and sustainable developments.
Amit Diwan, Senior Managing Director at Hines, observed that India’s position in the global economy continues to strengthen, underpinned by its domestic growth model, favourable demographics, and increasing demand for premium commercial properties. The country’s emergence as a global hub for business process outsourcing and global capability centres also continues to drive the commercial property sector. The rising demand for high-quality assets, driven by higher disposable incomes and urbanisation, is expected to further fuel real estate expansion, particularly in Tier 2 and Tier 3 cities. With more institutional investors eyeing India’s real estate market, the outlook for 2025 remains positive, with continued growth in both residential and commercial segments.
Luxury housing witnessed a significant boost in 2024, with a substantial increase in property values, driven by both demand in metro cities and the expansion of infrastructure into emerging cities. Dr. Niranjan Hiranandani, Chairman of Hiranandani Group, attributed the growth in luxury housing to increased infrastructure development, particularly in the nation’s megacities and Tier 2 locales. However, he also highlighted the challenges faced by affordable housing, with inflation and high-interest rates causing stagnation in this segment. The demand for high-end housing continued to rise, particularly in redevelopment projects and society development schemes. The growing work-from-office trend further supported the commercial real estate market, contributing to increased rental demand.
The year 2024 also saw a surge in the adoption of sustainable practices in real estate. Boman Irani, President of CREDAI – National, noted that green housing and PropTech have become central to real estate development. Consumers are increasingly prioritising sustainability, with many opting for properties that boast energy-efficient features and eco-friendly designs. The government’s emphasis on transparency, affordable housing, and infrastructure development has boosted buyer confidence, especially in emerging markets. The push for sustainable construction, in particular, has led to a growing number of developers adopting energy-efficient technologies and practices. As urban areas continue to expand, these sustainable practices will be crucial in ensuring the long-term viability of Indian cities, helping to address both environmental and civic issues that come with rapid urbanisation.
In conclusion, 2024 has been a year of significant transformation for the Indian real estate market. The sector’s resilience in the face of global economic challenges, combined with a government-led push for infrastructure development and sustainability, has set the stage for further growth in the coming years. The growth in luxury housing, commercial real estate, and the increasing demand for green properties signal a new era for India’s real estate sector, one that is not only economically strong but also sustainable and innovative.
