Blog Details

The Indian real estate market saw a significant advancement in terms of growth and investment in 2024. The market caters to all types of investors looking for a long-term investment. The market size, currently valued at USD 265.18 billion, has increased by around 32% since 2021, demonstrating robust growth trends driven by investor confidence and economic stability. 

Favourable government policies and initiatives, a boom in urbanisation, increased disposable incomes, and growing demand for housing and infrastructure are some factors cited as driving this expansion.

According to the report by India Real Estate: Vision 2047, the Indian market is set to rise by $5.8 trillion by 2047. The report further underlined that this trend might boost real estate and private equity investment in India to $54.3 billion in the next five years. These growth numbers indicate a 9.5% compound annual growth rate (CAGR) from 2023 to 2028.

Lower property prices and more affordable housing options in Tier 2 and Tier 3 cities are indicators of real estate growth. In contrast, the demand for upscale and luxurious real estate is rising in Tier 1 cities. This article presents you with insight into real estate investment trends in 2025 that will help you to invest accordingly.

Top Real Estate Investment Trends in 2025

• The Rise of Sustainable and Eco-Friendly Properties

The growing demand for environmentally friendly and sustainable real estate is a major trend that is changing industry. Energy-efficient technologies and better building practices are being pushed by consumers and regulations. In addition to satisfying legal requirements, the increased focus on sustainability also aims to satisfy customer preferences.

By 2025, it is anticipated that the sustainability trend will have intensified and that stricter green building regulations would become the standard. More sophisticated green materials and technologies are expected to be adopted by developers due to increased market demand and more stringent restrictions. It is anticipated that this change will give leaders in sustainability a competitive edge and establish new standards for the sector.

• Demand Shift in Residential Real Estate

The shifting demand for residential homes is a major trend in Indian real estate in 2024, which will continue in 2025. Affordable housing in tier-2 and tier-3 cities as well as suburban areas is becoming more and more popular as urbanisation picks up speed. Homebuyers are increasingly choosing to relocate to a space having larger living areas at more affordable prices rather than the central hubs of major urban areas like Bengaluru, Delhi, and Mumbai. 

Towns like Mangalore, the interiors of Pune, outskirts of Mumbai, and other such locations are highly preferred.

• The Impact of Remote Work

Post-Covid, the WFH has been the new work process followed by many companies in India. Real estate trends have also been impacted by the growth of remote work and hybrid models. Demand for residences with designated office areas and adaptable floor plans that support remote work requirements is rising. The need for homes with adaptable spaces that may be used as offices is growing as remote work becomes more commonplace in the workplace. Flexible layouts are becoming more and more common in our developments to accommodate these new demands.

• Growth in Rental Housing

In 2025, the rental housing market is expected to rise significantly, particularly among millennial renters, students, and young professionals. In major cities like Bengaluru, Pune, Mumbai, Gurugram, and Hyderabad, co-living spaces are becoming more and more popular due to affordability and a growing desire for communal living arrangements.

• Sustainable and Green Buildings on the Rise

With the growing demand for green, energy-efficient structures, sustainability is a top priority in India’s real estate market in 2024. To satisfy the demands of a clientele that is concerned about the environment, builders and developers are placing a greater emphasis on eco-friendly building techniques, sustainable materials, and energy-efficient designs.

• Ultra-Luxury Projects Thriving

In many metro cities like Mumbai and Gurugram, there are ultra-luxury projects that are either under construction or ready to move. In Gurugram, DLF already has some ultra-luxury projects costing more than Rs 10 crores targeting NRIs and high-end investors. Similarly, Lodha and other real estate companies in Mumbai have high-rise buildings with ultra-luxury amenities. There will be more such projects coming up in 2025.

• Real Estate Investment Trusts (REITs): A Growing Investment Avenue

One of the real estate investment trends in 2025 is the Real Estate Investment Trusts (REITs). In India, Real Estate Investment Trusts (REITs) have grown in popularity since their launch in 2019. This trend is anticipated to continue in 2024 as more investors seek regulated and diverse real estate investment possibilities.

Overcoming Affordability Issues

In the current market, affordability is still a major problem, with first-time buyers being impacted by growing property prices and a shortage of available housing. In 2025, there might be a greater emphasis on finding creative answers and implementing legislative changes to solve these affordability concerns. We anticipate increased initiatives to address housing affordability, such as the construction of affordable homes and new financing options.

Top Cities for Real Estate Investment in 2025

Since we have seen real estate investment trends in 2025, let us now check some of the top cities that are rising to be promising real estate investment grounds.

• Pune

Pune has always been a real estate investor’s love. Thanks to its IT sector hub tag, Pune offers multiple locations where you can invest. Moreover, the proper shaping up of infrastructure and affordable housing are contributing towards it. From the metro to end-to-end bus services are adding to it. Some of the top locations in Pune to invest in are- Hinjewadi, Hadapsar, Wakad, Baner, and others.

• Bhubaneshwar

This city is gearing up to become the next real estate investment destination. Since there are IT companies, top universities, and good infrastructure development, real estate developers are expecting to come up with good projects. Some of the projects worth investing in are- DLF Cybercity, Unitech One, Kalinga Nagar Industrial Complex, and others.

• Ahmedabad

With top-notch developments, Ahmedabad is creating a thriving business climate. With an average price of ₹4,500 per square foot and more in desirable neighborhoods, Ahmedabad has reasonably priced real estate options.

As a result of rapid development, some locations may experience faster than others in the rise of real estate.

• Navi Mumbai

To benefit the city of Mumbai by providing a cleaner and less crowded environment, Navi Mumbai has developed into a well-designed satellite city. Its well-established infrastructure includes easy access to Mumbai through road and rail networks—as well as the recently built Navi Mumbai International Airport significantly improves its real estate standing. Reputable real estate developers like L&T Realty, who provide opulent residential real estate with the Seawoods Residences, have also drawn attention to the city.

• Indore

Indore is historically known for its education section. It is now making some good real-estate investments, attracting investors towards it. IIT and IIM are already set here. Also, some pharma and auto companies are setting up their business. All these boosts in real estate investment bringing more projects in areas like- Major Road 12, Delhi- Mumbai Industrial Corridor, Ahilya Path Projects, and others.

Bottom Line

In summary, real estate investment trends in 2025 are quite promising. However, the Indian real estate industry is likely to undergo a radical shift in trends due to a resurgence of the commercial market and an anticipated increase in sales of luxury homes. To increase transparency and win over investors, government programs like Housing for All, the Union Budget projects, and regulatory changes like RERA are essential.