The start of a new year provides an opportunity to reflect on the past 12 months while also looking ahead to the 12 months ahead. It is important to analyze announcements that shaped development patterns over the past year, as well as current trends that could influence how markets evolve in the future.
Anuj Puri, Chairman, ANAROCK Group, said: “2024 was a mixed year for the Indian housing sector. Apart from the dampening effect of the parliamentary and parliamentary elections, project approvals fell significantly; this inevitably affected the supply of new housing. “So are sales.” While there was a slight decrease compared to 2023, this was offset by a 16% increase in total sales value, driven by average price increases and increasing unit sizes.”
Delivery
“Compared to 2023, 2024 saw a 21% increase in average price in top 7 cities,” says Puri. “However, 2025 is unlikely to be able to keep up with this strong growth.” Average residential property price increases will stabilize in the coming year, although there will be steady growth given increased input costs and high demand. 2025 will also see generous new supply injections from listed developers who hold significant inventory. “The elections and slow project approval process had affected the new supply pipeline in 2024,” he explains.
Layers
Prashant Sharma, President, NAREDCO Maharashtra, points out that 2024 has brought some crucial changes that will shape the industry in 2025 and beyond. As we look back over the past year, it is clear that transformative changes are taking place in the industry, driven by changing consumer expectations, technological advances and government initiatives.
“In 2024, we saw a significant shift towards green practices as developers adopted green construction technologies, energy-efficient designs and sustainable building materials. Home buyers and investors are increasingly placing value on projects that provide long-term environmental and economic benefits. This trend will only increase in 2025 as sustainability moves from a unique selling point to an industry must-have. Technology has continued to redefine the real estate landscape in 2024, with innovations such as virtual property tours, AI-driven analytics and blockchain-powered transactions taking center stage. As we move into 2025, the integration of big data and AI will become more prominent, enabling better decision-making and promoting greater transparency within the industry,” he points out.
Momentum
“Projects such as subway expansions, expressways and smart cities have boosted demand for residential and commercial space in metropolitan and suburban areas. The momentum is expected to continue in 2025 with developers focusing on creating integrated townships and mixed-use developments that meet the needs of a growing urban population. The post-pandemic era has redefined consumer expectations as buyers prefer homes that offer a mix of work, play and well-being. In 2024, demand for properties with spacious floor plans, smart home features, and wellness amenities saw a significant increase. “Developers must continue to innovate in 2025, design spaces that align with these evolving preferences and create value-driven offerings that cater to different buyer segments,” underlines the President of NAREDCO Maharashtra, stating that this is what we are looking forward to in 2025 too must focus on creating value, increasing customer trust and contributing to India's growth story.
Resilience
Manju Yagnik, Senior Vice President, NAREDCO Maharashtra said, “In 2024, the Indian real estate market has shown strong resilience. Sales of over Rs 110,000 crore were recorded in the first three quarters, with 115 million sq ft sold. The ultra-luxury segment, particularly properties priced between Rs 10 crore and Rs 80 crore, witnessed notable growth. While the premium real estate segment has been driven by accessible urbanization and changing consumer preferences. Additionally, RBI's decision to maintain the repo rate at 6.5% boosted market confidence and supported demand for residential properties in major cities. This positive momentum will continue, with rising consumer confidence and increased investment from both institutional and foreign investors.”
Infrastructure
Citing market movements, she adds: “According to JLL, Mumbai is on track to record record sales of over 300,000 houses worth ₹510,000 crore by year-end. Supply rose 5.3%, leading to a rise in property prices this year 6.5% led. Furthermore, the future of the real estate sector in 2025 looks absolutely promising as property prices in established centers continue to rise and the connectivity network of peripheral micro-markets strengthens.”