Current Real Estate Market Trends in India You Should Know

Jun 19, 2025

There are many changes taking place in the Indian real estate market, boosted by advances in technology, new demands of consumers and major policy improvements. Let’s discuss some of the key trends happening currently in business.

Key Highlights:

Rise in Housing Demand
Boom in Tier-2 & Tier-3 Cities
Infrastructure-Led Growth
Green & Sustainable Development
Affordable Housing Push
Rise of Mixed-Use Projects
Increased Demand for Co-Living & Rental Housing
Technology Integration
Growing Foreign Investment

Urbanization and Infrastructure Development

Over the next few years, India’s urban population will increase to more than 500 million, bringing greater demand for housing and business space. The most significant increase in growth is seen in Tier-2 and Tier-3 cities, as projects like expanding metros and building expressways make those cities better linked and more attractive to investors.

Affordable Housing Initiatives

To help people who need it, the government is still promoting schemes such as the Pradhan Mantri Awas Yojana. Evident in the Interim Budget 2025 are efforts to increase housing availability for single-income families and give encouragement to first-time buyers of homes.

Rise of Green and Sustainable Buildings

Being environmentally friendly is now fundamental in real estate development. By including energy efficiency, renewable power and sustainably made materials, developers support the environment and customers interested in protecting it.

Growth in Co-living and Rental Housing

The rise in demand for co-living and rental homes is mostly because of younger people who want flexible housing at a low price. More and more of such schemes are appearing in cities like Bengaluru, Pune and Hyderabad, focusing on living for families and providing modern amenities.

Expansion of Mixed-Use Developments

More and more, mixed-use developments that include homes, offices and places for leisure are gaining attention. They are built to satisfy the increased need for convenience and community by making better use of space and improving the urban environment.

Technological Integration in Real Estate

Real estate is being transformed by advances in technology. Technology is helping to make everything from virtual home tours and digital deals to smart homes and AI-run property management easier and better for customers.

Emergence of Peripheral Real Estate Markets

Lands surrounding major cities are becoming some of the hottest places for real estate. Prices for homes on Gurgaon’s Dwarka Expressway have almost doubled in four years, thanks to better infrastructure and easier transport links.

Surge in Luxury Housing Demand

Sales of luxury homes have risen sharply, which is why the luxury housing segment is growing fast these days. More and more ultra-luxury home deals are taking place in cities like Bengaluru because of increasing prosperity and desire for high-class housing.

Increased Foreign Investments

The commercial and industrial part of real estate in India is drawing in sizable investment from abroad. By Q3 2024, there were USD 4.7 billion of institutional inflows, suggesting that global belief in the sector is stable and may rise to between USD 5 - 6 billion by the end of the year.

Conclusion

In general, India’s real estate market in 2025 is marked by variety, new technology and attention to sustainability. Because of urban growth and changes in consumer behaviour, the sector expects to see further growth and new trends.