Real estate trends- 2025
2024 was a transformative year for the real estate market in India. Two of the largest driving forces behind this transformation are advancements in technology and sustainability. A CAGR of 9.2% is predicted as the economy strengthens and promotes low lending rates. 2025 is projected to be a vital year that will bring forth a directional change in the real estate sector’s growth path. The GDP contribution from the sector is poised to grow from 7% in 2024 to 13% in 2025 and then to 18% in 2047. Subsequently, the market size as well is expected to reach $4.8 trillion by 2047. Shifting from traditional asset classes, the real estate market is experiencing a carryover of expansive trends from 2024 such as luxury living, eco-friendly homes, integrated townships and affordable homes with continuous evolution taking centrestage.
Emerging as one of the most dynamic and promising sectors of the global economy, here are 5 real estate trends to look out for in 2025:
New investment avenues
With changing consumer demographics and preferences, there has been an expansive movement towards unconventional asset classes such as data centres, co-living spaces and senior housing. Key roles played by the inventive investment avenues and improved regulations have generated a conducive environment for sector transparency and overall appeal. With the introduction of new RERA rules and small and medium REITs, India is poised as a global hotspot for real estate investment. Flourishing financial avenues and advancements in technology will bring in more inflows into the sector.
Shift to urban living
Across tier 1 cities in India, there has been a dynamic shift from busy urban centres to quieter suburban neighbourhoods. With flexible modes of work and the need for better quality of life paired with spacious, yet affordable homes; there is a noticeable exodus to tier 2 and tier 3 cities. Fast gaining popularity are also integrated townships, community focused living, multigenerational living and tech driven homes with advanced offerings in terms of AI and sustainability.
A demand for prestige and comfort
Luxury real estate is a highly promising segment nurtured by a demand for exclusivity and prestige. In tier 1 cities especially, luxe homes
are nothing short of a status symbol. Many luxury homes come equipped with state of the art amenities such as high end security, remote working spaces, wellness rooms and private pools. The demand for premium housing infact rose from just 6% in 2013 to 16% in 2024. The luxury and ultra-luxury segments continue growing; even faster than the affordable housing segment.
Strong infrastructure growth
With focus on roads, railways and aviation, India’s landscape has been dramatically altered. Powered by the government capex rising
from Rs. 1 lakh crore in 2021-2022 to Rs. 11.11 lakh crore in 2024-2025, India’s infrastructure has been boosted as well. Improved connectivity brought with it a strong demand for real estate in tier 1 and tier 2 cities. The demand for satellite townships near major infra hubs is sky rocketing. The future is set to bring with it several opportunities in industrial, commercial and residential sectors.
Boost from retail and hospitality sectors
Indian consumer spends in the retail sector peaked at $1.29 trillion in 2024. Food, fashion and entertainment dominate consumer spends playing an undeniable role in transforming malls from a place to shopping to one that is experiential for every member of the family. Growth in experiential retail is a significant trend in 2025.
The influx of investments to the hospitality sector is projected to reach $ 413 million by the year end, a 22 per cent rise from 2023. An increase in disposable incomes, rising urbanization trends and evolving lifestyles are all harbingers of change for the real estate segment this year.
Conclusion
Pertinent factors such as technological integration, economic reforms and dynamic consumer preferences continue to shape the real estate sector. Adapting to ever evolving consumer demands is a must for investors and stakeholders. 2025 holds great potential for real estate and keeping in mind the opportunities and challenges, B&M will be venturing into projects that redefine living as we know it by leveraging green construction and technological advances to offer real estate prospects for HNIs and other stakeholders. For more details or for an appointment, please visit our website: https://bnminfra.com/
