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Page Contents
- What Are The Real Estate Trends In India?
- Rising Demand For Low-Density Projects
- Shifting Demand Towards Luxury Housing
- Growing Popularity Of Tier 2 Cities
- Expanding Commercial Real Estate
- Infrastructure Boosting Real Estate Growth
- Emerging Retail And Hospitality Sector
- Tech Integration and Sustainability
What Are The Real Estate Trends In India?
The real estate industry in India is surging with exceptional growth, led by various factors. The demand for residential properties continues to rise with the growing need for premium housing and increased disposable income. As per KPMG insights, the Indian real estate is expected to become a trillion-dollar industry by 2030.
Top markets in India have witnessed a consistent price growth along with rental expansion. This growth indicates resilient demand, positive homebuyer sentiment, and supportive initiatives by the government. The rapid urbanisation of Tier 2 cities, aspiration for homeownership, technology-driven facilities, and upgrading lifestyle are driving the real estate graph progressively.
With an optimistic growth throughout 2024, Indian real estate is surging upwards, led by several trends like low-density housing, demand for the luxury segment, Tier 2 cities, infrastructure-led growth, digital integration, etc. This blog further elaborates on these current real estate trends in India.
What are the prominent real estate trends in India?
Growing prominence for premium housing, Tier 2 and 3 cities, retail and hospitality sector, infrastructure-led price growth, smart homes, low-density projects, and more are some of the major real estate trends in India.
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Rising Demand For Low-Density Projects
As per the Knight Frank Residential Report 2024, the demand for luxury housing segments has been phenomenal in 2023-24. This can be attributed to the desire for larger carpet areas, better quality of living, curated facilities, and rising income levels. Homebuyers are willing to pay significantly to acquire larger and luxurious homes.
Mumbai real estate trends have indicated the growing need for low-density projects. There are several newly launched projects by Grade A developers with only 2 – 4 apartments per floor. Many ultra-luxurious residential projects in South Bombay have only one apartment per floor for unbounded privacy and exclusivity.
What Are The Mumbai Real Estate Trends?
Mumbai real estate trends include rising demand for low-density apartments, curated amenities, customised homes, preference for properties in South Central Suburbs, sustainable practices, etc.
Which areas are best in Mumbai for real estate investment?
Andheri, Wadala, Lower Parel, Bandra, Santacruz, Chembur, Panvel, Kharghar, Goregaon, Kandivali, Worli, and Thane are the best areas for real estate investment in Mumbai.
Read more: Mumbai Real Estate Overview
Shifting Demand Towards Luxury Housing
Luxury housing has been the key growth driver for Indian real estate in 2024. This segment will continue to increase its share in the overall sales of inventory across top markets in India. According to IBEF, the luxury housing segment witnessed 28% sales growth in Q1 2025, highlighting the surging demand for luxury and ultra-luxury properties.
Around 1,930 housing units were sold in Q1 2025, which rose from 1,510 units in Q1 2024. The rising number of high-net-worth individuals (HNIS) and ultra-high-net-worth individuals (UHNIS) is accelerating the supply of luxury apartments in top cities like Mumbai, Delhi NCR, Bangalore, Hyderabad, and Pune.
Larger carpet areas, curated amenities, advanced facilities, and multi-tier security are the prime factors to drive the demand for luxury housing. As per the Knight Frank Residential Report, properties priced over ₹ 1 crore accounted for 46% of overall sales in H2 2024.
The ₹ 2 Crores – ₹ 5 Crores housing segment constituted 15% of the total sales, rising from 10% in the previous year. With the increased supply of the luxury and ultra-luxury segments, the supply of properties ranging between ₹ 50 Lakhs – ₹ 1 Crores is declining gradually. Developers are heeding the evolving demand for luxury properties in India.
Price Trends In Luxury Markets Of Mumbai
| Localities | Price | Change in 5 Years (%) |
|---|---|---|
| Malabar Hill | ₹ 75,100 per sq. ft. | 4.3% |
| Bandra West | ₹ 59,100 per sq. ft. | 11.2% |
| Worli | ₹ 62,500 per sq. ft. | 25.2% |
| Powai | ₹ 36,400 per sq. ft. | 26.9% |
| Mahalaxmi | ₹ 58,000 per sq. ft. | 6.8% |
| Andheri West | ₹ 36,100 per sq. ft. | 8.1% |
| Lower Parel | ₹ 52,400 per sq. ft. | 18.4% |
What Are The Pune Real Estate Trends?
Infrastructural developments like an expansion of IT hubs and the automobile industry, the Pune Ring Road, the Pune Metro, and the rising demand for premium properties in peripheral regions and smart home automation are the evolving Pune real estate trends.
Which areas in Pune real estate are developing fast?
Kharadi, Hinjewadi, Baner, Kothrud, Balewadi, Wakad, and Wagholi are the fastest-growing areas in Pune real estate.
Read more: Pune Real Estate Overview
Growing Popularity Of Tier 2 Cities
The demand for premium properties in India is diverting from metropolitan cities to Tier 2 and Tier 3 cities. Tier 2 cities ensure a progressive and pragmatic approach to development. They hold great potential for excessive returns on investment, owing to their futuristic development plan and ambitious infrastructure.
Tier 2 cities are the emerging real estate hotspots for every sector of real estate. They offer relatively affordable residential, commercial, retail, and hospitality investment opportunities. Considering the ongoing Bangalore real estate trends, the peripheral areas like KR Puram, Hebbal, and Whitefield, Sarajapura Road, Yelahanka, and more have become the prime realty centres.
Proximity to key facilities, such as the airport, employment hubs, and educational institutions, along with developing infrastructure, makes these peripheral areas attractive. Homebuyers opt for Tier 2 cities for their reasonable prices and foreseen growth.
The prime advantage of Tier 2 cities is the land availability. Contrary to the metro cities where there is a limited scope for land and higher prices, these cities present affordable housing options with a larger carpet size.
Millennials, working professionals, and senior individuals are opting for Tier 2 and Tier 3 cities for the utmost comfort, more space, and price appreciation. These developing cities hold maximum potential for price growth than the developed metro cities.
What Are The Bangalore Real Estate Trends?
The ongoing Bangalore real estate trends include real estate boost by the infrastructure development, emerging IT corridors and startups, peripheral areas of commercial centres, huge potential for rental yields, etc.
What is the future of the Bangalore real estate market?
Bangalore real estate market holds a huge potential for long-term investment, considering the infrastructure upgrade, commercial growth, emerging localities, substantial rental demand, and enhanced connectivity options.
Read more: Bangalore Real Estate
Expanding Commercial Real Estate
The commercial sector is booming as the leasing operations have deliberately increased across top cities and Tier 2 cities in India. Emerging IT corridors and startup ecosystems are fuelling the Pune real estate trends and the Bangalore real estate trends. The increasing commercial activity in these tech-driven cities further influences the rental demand.
India has around 1700 Global Capacity Centres across the top cities. The GCC market witnessed a growth of 11% CAGR in 2024, which has uplifted the growth in the Indian office market. Prominent global companies are setting up their GCC in India to capitalise on its exceptional talent and inter-market trading.
The demand and supply of flexible office spaces and co-working spaces have risen in major cities. The Hyderabad real estate trends are also affected by the city’s augmenting commercial infrastructure. Hyderabad offers reasonably priced office units and flexible workplaces than Mumbai, Pune, and Bangalore. As per the KPMG report, the flexible office units are assumed to exceed 80 million sq. ft. by the end of 2025.
Developing cities like Lucknow, Nagpur, Gurugram, Jaipur, Ahmedabad, and Indore are also attracting investors for commercial units. Driven by exceptional social infrastructure, a talented workforce, and affordability, Lucknow real estate trends are fostering commercial opportunities for startups and major business corporations.
What Are The Hyderabad Real Estate Trends?
The current Hyderabad real estate trends indicate a shift towards smart homes, luxury properties priced above ₹ 1 Crore, larger layouts, integrated townships, co-working spaces, and properties near the business hubs.
What are the future predictions of the Hyderabad real estate market?
Hyderabad is the fastest-growing real estate market in India, surpassing Mumbai and Bangalore. Investment in Hyderabad assures lucrative price appreciation led by its extensive IT infrastructure, affordability, integration of sustainability, increased supply of luxury properties, and booming commercial sector.
Read more: Top Residential Areas in Hyderabad
Infrastructure Boosting Real Estate Growth
Infrastructure is one of the prime growth drivers for the real estate industry, irrespective of residential, commercial, or hospitality sectors. Excellent infrastructure, accessible necessities, and an advanced lifestyle in key cities boost the real estate industry. It has also become a catalyst for commercial growth.
Major infrastructure projects like the Outer Ring Road, Mumbai Trans Harbour Link, Dwarka Expressway, Delhi Metro expansion, Coastal Road, Pune Ring Road, and more have laid a strong foundation for the flourishing residential, industrial, and commercial industries. These developments influence property prices in their peripheries.
Well-developed infrastructure attracts more companies and businesses, which generates a significant number of employment opportunities. Due to its infrastructural upgrade, property prices in Noida appreciated by 5% – 7% in the initial quarter of 2024. Tech stalwarts Samsung, Infosys, and Microsoft have offices in Noida.
The services of Metro 3 Phase 1 in Mumbai have surged the property prices and rental demand in the surrounding areas. Whereas the demand for properties in the South Central Suburbs has already increased with the ongoing development of its metro Phase 2. The expansion of IT hubs in Pune, Bangalore, and Hyderabad is driving the demand and sales of premium properties.
What Are The Lucknow Real Estate Trends?
Increased supply of luxury housing segments, expanding commercial sector, smart home integration, and multifamily properties are the ongoing Lucknow real estate trends.
What is the prospect of Lucknow real estate?
Lucknow real estate is flourishing with rapid urbanisation, infrastructural boost, and commercial expansion. The property prices in Lucknow are surging upwards with increasing demand, owing to its balanced environment of traditional heritage and contemporary lifestyle.
Emerging Retail And Hospitality Sector
Demand for leased retail units and hospitality centres is uplifting the commercial real estate in India. Rising activity across the retail and hospitality industries is one of the prime highlights in Mumbai real estate trends. Due to its well-laid infrastructure and extensive business landscape, Mumbai holds huge potential for hospitality investments, followed by Bangalore and Pune.
The rapid urbanisation, exceptional accessibility, upgrading lifestyle preferences, and increased disposable income have laid the foundation for an exponential retail and hospitality growth. The growing prominence of food, entertainment, grooming, and fashion sectors has triggered the progress of the retail industry across top cities and even Tier 2 cities.
The flourishing business and residential environment of the Tier 2 cities presents an opportunity for the hospitality business. As stated in the KPMG report, the hospitality sector saw a growth of $ 93 million in H1 2024, backed by the strong demand and high occupancy rate.
What Are The Future Real Estate Prospects In India?
The future real estate trends in India will comprise a balanced growth of demand and sales, advancement of Tier 2 & 3 cities, ESG compliance, and rising use of Artificial Intelligence.
Which is the fastest-growing market in the Indian real estate?
Hyderabad is a rapidly growing real estate market in India. It has surpassed Mumbai, Delhi NCR, and Bangalore in terms of market stability, property price appreciation, and the extent of commercial growth.
Tech Integration and Sustainability
Real estate trends in India have also evolved digitally, meeting the contemporary needs and aspirations of homebuyers and investors alike. Technological advancements in the residential and commercial sectors have enhanced and eased the user experience. Post the pandemic, virtual tours, chatbots, and locality tours have gained huge importance.
Moreover, the online property listings have allowed homebuyers and investors to analyse, compare, and select the best-suited property. Several property listing portals present a detailed preview of the location, surrounding infrastructure, price graph, and reviews. This helps the investors to make an informed decision, ensuring positive returns.
Sustainability has gained popularity among modern homebuyers for a healthier and comfortable lifestyle. Developers are also incorporating sustainable practices and energy-efficient materials while building their projects. As per the KMPG report, India has ranked 3rd for the total number of LEED-certified green buildings in 2022. By September 2023, 82% of office spaces in India were green certified.
Developers are also integrating smart home solutions, such as video door phones, smart lighting, gas detectors, air purification systems, etc. Incorporating tech-driven features in the operations facilitates transparency and enhances customers’ trust in developers.
Adoption of smart building technologies has ensured comprehensive safety in commercial and residential projects. They have not only reduced the construction cost but also resulted in optimised energy consumption. Apart from this, advanced facility management platforms enable the reduction of downtime, quick resolution, and seamless communication.
Which developer has a reputation as a sustainable builder in India?
Lodha Group has a great reputation as a sustainable builder in India due to its ESG principles.
What is the future of tech-based innovations in Indian real estate?
Tech-based innovations will continue to grow in the Indian real estate market. Virtual tours, chatbots, AI-based assistance, smart home automation, and more are transforming the real estate landscape in India.
