Mumbai: As the Indian real estate sector undergoes transformative changes, driven by evolving consumer expectations, technological advancements, and government initiatives, collaboration between developers, policymakers, and stakeholders will be essential in 2025 to address the growing demand for quality housing, sustainable practices, and cutting-edge technology, according to industry experts.
According to Prashant Sharma, President of the Maharashtra National Real Estate Development Council (NAREDCO), affordable housing remains a cornerstone of India’s real estate agenda. The government’s continued emphasis on schemes like PMAY (Pradhan Mantri Awas Yojana) is driving momentum in this segment.
“2024 saw steady progress in making homeownership accessible to the middle and lower-income groups. However, meeting the dual challenges of affordability and quality will require innovative solutions in 2025. Developers must adopt cost-effective construction techniques and collaborate with policymakers to bridge the demand-supply gap,” he mentioned.
Sustainable and green buildings are quickly becoming the standard. According to Sharma, in 2024, we witnessed a significant shift toward eco-friendly practices as developers embraced green construction technologies, energy-efficient designs, and sustainable building materials.
“Homebuyers and investors are increasingly valuing projects that offer long-term environmental and economic benefits. This trend will only grow stronger in 2025 as sustainability evolves from being a differentiator to an industry imperative,” he noted.
Rapid urbanisation and infrastructure development have been pivotal in shaping the real estate market this year.
Projects such as metro expansions, expressways, and smart cities have fuelled demand for residential and commercial spaces in metropolitan and suburban areas.
Experts predict that the momentum will continue in 2025, with developers focusing on creating integrated townships and mixed-use developments that cater to the needs of a growing urban population.
India’s real estate sector has also emerged as a preferred destination for foreign investment, bolstered by regulatory reforms and a burgeoning middle class.
According to a Knight Frank India report, private equity (PE) investments in the Indian real estate sector reached $4.2 billion in 2024, marking a 32 percent year-on-year (YoY) growth amid high demand in the warehousing segment.
In 2024, we saw increased interest from institutional investors and sovereign wealth funds, particularly in commercial and warehousing spaces.
Industry experts say that maintaining transparency, improving the ease of doing business, and delivering consistent returns will be crucial to sustaining this momentum and further boosting global investor confidence.
Shishir Baijal, Chairman and Managing Director of Knight Frank India, said that India has seen a rise in investments, particularly over the past decade, driven by economic stability and consistent growth.
As these trends unfold, they bring both challenges and opportunities for the real estate sector. In 2025, industry leaders will need to adapt, innovate, and remain attuned to the market’s shifting dynamics.
–IANS
