New Delhi [India], March 01: India’s real estate market, according to various estimates, had a strong run in 2024. As a result, the year 2025 looks promising. There have been many positive shifts, and the same trends will repeat this year with a higher demand fueling India’s housing market even as the office segment expands. 

Here are the top five real estate trends that are likely to dominate the Indian market:

1.     Housing market to expand in Tier 2 and Tier 3 cities 

According to a KPMG report, more than 229,000 housing units were sold across the top seven cities of India during the first two quarters of 2024. High and mid segments have dominated these purchases, while premium housing saw a 16% share of demand in 2024. However, with government initiatives such as Smart Cities, this trend will pass down to Tier 2 and Tier 3 cities in 2025 and beyond. The spokesperson of K Raheja Realty, shares, “Tier 2 and Tier 3 cities are now driving the infrastructure development of the country due to increased urbanization and per capita income. People are selling out their houses in Tier 1 cities to move to smaller cities for a better environment and green initiatives of real estate players.” K Raheja Realty is a Mumbai-based firm that was awarded the Maharashtra Gaurav Award for its contributions to real estate in Tier 2 and 3 cities by the State Government. 

2.     Demand for sustainability

Real estate developers are deliberately focusing on building eco-friendly homes and spaces due to the growing awareness about sustainability. There has been a primary focus on building homes and residential complexes using sustainable materials along with maintaining green campuses and a focus on the use of solar panels for electricity, among other initiatives. 

3.     Luxury still rules 

The year will see people investing in luxury properties due their better return value and as a means to live more comfortably. The report above further corroborates this notion because a major portion of residential investments in 2024 was taken up by premium and luxury property buying. “We have directed our focus towards building luxury residential projects for the past many years because of the growing demand. Our project Raheja Residency won the 'Ultra Luxury Residential Project of the Year' award from Times Business Awards, North, in 2024 because we succeeded in creating world standards of sustainable and luxury living. This also goes on to show that the market will eventually push us to raise our standards as the market for ultra-premium residential complexes grows,” adds a spokesperson of K Raheja Realty. 

4.     The rise of Real Estate Investment Trusts

The REITs are corporations or independent firms that manage the portfolios of high-value real estate mortgages and properties. They offer investors many opportunities to buy high-value properties and earn income or dividends from them. The presence of these companies has democratized the market so even retail investors are now taking keen interest in owning commercial assets. 

5.     Technology in real estate deals 

With the advent of online retail marketplaces a decade ago, buying and selling properties has become more convenient and quicker. Technology has empowered the end-buyer and property owner to get independent valuations and set prices for buying or selling.