India’s Real Estate Transformation to Luxury, Sustainability, and Growth
India’s real estate sector in 2024 witnessed significant changes that reshaped the landscape and set the stage for future growth. As one of the country’s most vital economic pillars, real estate contributed heavily to the nation’s GDP, projected to reach $1 trillion by 2030. The sector experienced growth across multiple facets, including luxury housing, suburban living, emerging technology, and sustainable building practices. With a focus on meeting evolving buyer preferences, this year’s trends will likely have lasting impacts in 2025 and beyond.
One of the most notable shifts was the continued expansion of the luxury housing market. With rising disposable incomes and an increasing number of high-net-worth individuals, demand for exclusive, well-crafted residences surged. Properties featuring cutting-edge home automation, advanced security systems, and amenities like private pools and concierge services became the norm for luxury buyers. Developers responded by focusing on sustainable designs and prime locations to not only attract affluent buyers but also to ensure these luxury properties serve as long-term investments. The focus on superior craftsmanship, prime locations, and energy-efficient solutions reflected a new generation of luxury living, where comfort meets sustainability.
Meanwhile, the trend toward suburban living gained momentum as the effects of the pandemic continued to influence buying habits. The rise of remote work and telecommuting meant that homebuyers began prioritising space, affordability, and accessibility over proximity to urban centres. The demand for larger homes in less congested areas grew substantially. Cities like Mumbai, Pune, and Bengaluru saw increased activity in suburban residential and commercial sectors, with property prices in these areas reflecting a steady uptick. The sale of high-value homes above Rs 5 million increased significantly, while unsold inventory levels dropped, signaling a more balanced and healthier market. Residential sales grew by 11% year-over-year, with notable increases in cities like Hyderabad, Kolkata, and Ahmedabad. This suburban shift, bolstered by improved infrastructure and connectivity, is expected to continue in 2025 as buyers seek more space and better value for money.
The real estate market in India’s tier-2 and tier-3 cities also experienced a boom in 2024. Government initiatives like the Smart Cities Mission and the AMRUT Yojana brought significant improvements in infrastructure, connectivity, and job creation in smaller cities. This made these locations increasingly attractive to homebuyers and investors looking for more affordable options. With initiatives like the Pradhan Mantri Awas Yojana (PMAY) focusing on affordable housing, these cities are poised to become key players in the country’s real estate landscape in the coming years. As property prices rise in metro cities, demand for affordable housing has increased in these regions, contributing to the growth of both residential and commercial developments.
A major trend that emerged in 2024, and which is expected to continue in 2025, is the rise of sustainable living. There is growing awareness among buyers regarding the environmental impact of their homes, driving demand for eco-friendly, energy-efficient buildings. Developers are increasingly integrating sustainable construction practices into their projects, offering features such as solar panels, rainwater harvesting, and waste management solutions. Certifications like LEED and IGBC are becoming essential for developers to showcase their commitment to sustainability. This shift toward green buildings not only helps reduce the environmental footprint but also results in long-term cost savings for homeowners in terms of utility bills. With government incentives and growing consumer demand, the push for sustainability in real estate is set to accelerate, aligning with global efforts to reduce carbon emissions.
Looking ahead to 2025, India’s real estate market will continue to benefit from a mix of technological advancements and evolving consumer preferences. The integration of smart home technology, virtual property tours, blockchain for secure transactions, and AI-driven insights will redefine how properties are marketed, sold, and managed. The continued growth of tier-2 and tier-3 cities, coupled with a focus on sustainable, affordable housing, presents a bright future for the sector. With real estate being one of the largest employment generators in India, the industry is set to contribute even more significantly to the country’s economy, attracting both domestic and international investments. The trends of 2024 will thus lay the foundation for a more sustainable, tech-driven, and inclusive real estate market in the years to come.
