Historic growth has been seen in the Indian real estate sector in 2024. Demand for real estate, especially in the luxury segment, green projects and small towns, took the sector to new heights. Now, this success is expected to be repeated on an even larger scale in 2025.
Talking about growth and stability, an unprecedented increase in customer demand was seen. There was a huge jump especially in mid-segment and luxury properties. Developers got new energy due to increase in investment in properties worth more than Rs 1 crore. Improvement in infrastructure in small towns made these areas attractive for investment. The growing craze of green construction projects and smart homes, the impact of technology and the huge allocation for urban housing in the Union Budget gave a new direction to real estate.
According to the report of Knight Frank India, the real estate sector has become stronger than ever in the third quarter of 2024. Positive trends have been seen in both residential and commercial sectors. Investors have now started considering real estate as a stable and profitable investment option, which shows positive growth in this sector.
Rapid growth in small cities and increasing craze for green buildings and smart homes Real estate in small and medium cities witnessed tremendous growth. Infrastructure development made these areas investment hotspots. According to a Knight Frank India report, residential prices increased by 62% in the third quarter and demand for commercial properties increased by 12% in tier-2 and tier-3 cities. At the same time, the craze for green buildings and smart homes will increase in 2024. Keeping the environment in mind, green construction projects attracted customers.
The increasing use of technology, such as artificial intelligence and home automation, has given a new direction to real estate. A huge allocation of Rs 10 lakh crore was made for urban housing in the Union Budget 2024. This step proved to be very important to meet the housing needs of urban families.
Real estate boom in Noida, Greater Noida From July to September 2024, the real estate market in Noida and Greater Noida witnessed a boom. Residential property registrations increased by 6% and sale prices increased by 34%. This increase is the result of increased investor confidence. Improving connectivity and high quality residential facilities in these areas have made them attractive investment destinations.
2025 could prove to be a game-changer for India's real estate sector. Developers and experts are excited for 2025. In the survey of Knight Frank and NAREDCO, 62% experts believe that the prices of houses priced at Rs 1 crore or more may increase. Apart from this, 40% estimate that sales may increase.
Manoj Gaur, Chairman, CREDAI National and CMD, Gaur Group, says that the increasing demand for luxury homes in 2024 has taken real estate to new heights, where the demand for homes with large and luxurious spaces increased rapidly. Homes have now become not just a place to live, but a symbol of people's identity and aspirations. Gaur NYC Residences project on NH-24 created a record of being completely sold out in just two and a half days of launch. Similarly, in the Legacy by Gaur project in Greater Noida, 200 units were sold rapidly. In 2025, we are working on many new plans, which will better meet the needs and aspirations of the customers.
County Group Director Amit Modi says that in 2024 we have taken many important steps towards green buildings and smart homes. This has not only been done keeping the environment in mind, but is also an effort to meet the changing needs of customers. In 2025, we will pay more attention in this direction and plan to introduce new, highest standards projects in this area.
Sanjay Sharma, Director of SKA Group, says that the policies and reforms implemented by the government have created an environment of stability in the real estate market, which has also strengthened customer confidence. These reforms have resulted in increased transparency and security in the market, which has doubled the confidence of investors and buyers. With this stability, we fully expect the real estate sector to grow even faster in 2025.
Prateek Tiwari, Managing Director, Prateek Group, says that in 2024, the real estate sector has seen rapid growth in major metro cities. Areas like Noida Sector-150 and Siddharth Vihar of Ghaziabad have emerged as new centers for luxury living. Improving infrastructure and increasing amenities have made these areas attractive for buyers and investors.
Salil Kumar, Director, Marketing and Business Management, CRC Group, says that the demand for smart home technology and wellness-centric features in luxury real estate will increase rapidly in 2024. Buyers are now preferring homes that raise social standards with integrated designs and premium amenities. Developers have also adopted this trend and focused on green buildings and wellness-centric projects.
According to Dr. Gautam Kanodia, Founder of Kriva and Kanodia Group, 2024 was the year of luxury housing for the real estate sector. Key localities of Delhi-NCR, such as Golf Course Road, SPR, Dwarka Expressway and Sector-46 Gurugram witnessed an overwhelming response from HNIs and NRIs. Better connectivity and improvement in infrastructure made these areas more attractive for buyers. Vansh Kataria, co-founder of Tirsya Estates, says that 2024 has been a year of major change for real estate. The number of people buying and investing in homes has increased especially in Tier-2 cities. The reason for this is the better infrastructure there, good connectivity and the option of luxury living away from the metro city.
Sundream Group CEO Harsh Gupta said that infrastructure projects like Jewar Airport and new business hubs have attracted companies from India and abroad to Delhi-NCR. Now companies want offices that are modern and flexible. This segment of commercial real estate will grow rapidly even further. Manit Sethi, director of Exensia Infra, says that 2024 will be a very special year for residential real estate. The demand for luxury and high-end homes has increased rapidly in tier-2 cities. Now people want homes that are comfortable and modern, like integrated townships or wellness homes.
Nayan Raheja of Raheja Developers says that 2024 will be a great year for luxury homes. I think this trend will continue in 2025 also. Due to economic growth and increasing ambitions, luxury homes will remain the first choice for buyers and investors.
The development of Gurugram is an inspiring story. This city, which was once considered a suburb of Delhi, has today emerged as the center of luxury real estate of the country. According to a recent JLL report, Delhi-NCR contributed 64% of luxury residential projects in the first half of 2024, with Gurugram taking the lead. Especially in areas like Dwarka Expressway and Southern Peripheral Road (SPR), where 88% of luxury projects were launched.
Pradeep Agarwal, Founder and Chairman, Signature Global (India) Limited said the Indian real estate sector is set to witness rapid growth in 2024, driven by urbanisation, changing lifestyles and growing demand across affordable, mid-income and luxury segments. In particular, residential demand remained strong and the luxury market witnessed increasing interest from high income individuals and NRIs. Sustainable development is becoming an important trend from the environmental point of view.
The Indian real estate sector is valued at approximately $493 billion and contributes 7.3% to the country's GDP. In future, this sector can reach 1.3 trillion dollars by 2034. Sandeep Chhillar, Founder and Chairman of Landmark Group, says that 2024 was a very special year for real estate, where the demand for buying homes reached new heights. The increasing demand for luxury homes in Delhi-NCR strengthened the market.
According to a recent report by Anarock, a total of 6,205 units were sold in Faridabad in the first half of 2024, of which more than 10% were in the luxury segment. The demand for real estate is likely to increase further in the coming 2025 with the completion of metro expansion, expressway and smart city projects. With the addition of 30,000 new professionals every year and expansion of residential projects, Faridabad is now being named along with cities like Noida and Gurugram.
Mohit Goyal, Managing Director, Omaxe Group, says that 2024 has been a great year for the real estate sector. Improvement in infrastructure and increasing interest in home buying took this sector to new heights. Especially in Delhi-NCR, demand for luxury housing and leasing of retail-office space increased.
Uddhav Poddar, CMD, Bhumika Group, says that 2024 will see significant changes in the real estate sector, with the residential market expected to grow by 15-20% due to increasing demand for premium and mid-segment homes. With better connectivity and industrial development, Faridabad has emerged as a major commercial destination. As we move towards 2025, the sector will prioritize sustainability and technology, as well as promote smart and green growth.
