Trends shaping the Indian real estate market in 2024 and the way forward for 2025 – Money News

Luxury living was the talk of the city in 2024. The launch of premium and ultra-luxury projects marked a pivotal moment for India’s luxury real estate market, driven by a shift in momentum in favor of affluent buyers and premium living spaces. As India’s economy continues to grow, luxury real estate has become a sought-after asset for those looking to improve their lifestyle.

Key cities leading the luxury real estate boom

Various factors contributing to this change include an upgrade in lifestyle, with wealthy buyers increasingly seeking larger and more exclusive homes that not only offer luxury but also a higher quality of life. This dynamic has paved the way for the luxury real estate market to become more attractive than ever before, with cities like Delhi-NCR, Mumbai and Bengaluru leading the way and micro-markets like Gurugram, Noida and South Mumbai registering robust growth.

Increase in luxury sales between January and September

According to CBRE, the luxury real estate market witnessed a boom in the first nine months of 2024, with sales of high-end residential units priced at Rs 4 billion and above increasing 37.8% year-on-year. Delhi-NCR, Mumbai and Hyderabad took the lead, accounting for nearly 90% of the total luxury property sales in the country’s seven largest cities. Total sales of luxury units reached around 12,625 between January and September 2024, a significant increase from the 9,160 units sold in the same period last year. Delhi-NCR recorded sales of 2,590 units as compared to 480 units in Q3 2023.

Commenting on this, Rajjath Goel, Managing Director, MRG Group said, “2024 has been a year of growth for the luxury real estate sector, with Gurugram continuing to attract demand driven by both high net worth individuals and professionals in search of world-class living . The focus was on providing premium homes that combine elegant design, state-of-the-art amenities and sustainability. Looking ahead to 2025, the focus will be on expanding luxury offerings to meet the evolving needs of discerning home buyers. With a focus on quality and innovation, the sector is poised to redefine modern living and create spaces that meet the aspirations of the next generation of residents.”

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Real estate transactions and start-ups in 2024

India’s real estate sector witnessed remarkable activity in 2024, with property transaction volumes increasing by 65% ​​in the first nine months, signaling strong investor confidence. According to CBRE South Asia, Delhi-NCR emerged as the epicenter of this activity, accounting for 32% of all property deals nationwide. Within NCR, Gurugram led the way with a significant share of 65%, while Noida and Greater Noida contributed another 20%. This increased activity reflects increasing demand for residential and office buildings and emerging sectors such as data centers, positioning India as a premier long-term investment destination.

Harinder Singh Hora, Founder and Chairman, Reach Group, said: “In 2024, India’s real estate sector witnessed significant growth, with commercial real estate leading the way. Demand for Class A office space increased by almost 15%, driven by business expansions and significantly increased interest from Global Capability Centers (GCCs) and flex office operators. Gurugram reaffirmed its status as a premier commercial hub, attracting dozens of multinational companies and thousands of professionals. The city’s strategic location, seamless connectivity and modernization of infrastructure – such as the nearly 30 km long Dwarka Expressway – made it a magnet for global investors and retail brands. This influx increased absorption of retail and office space by approximately 20%. As we look ahead to 2025, Gurugram is poised for even greater growth as ongoing infrastructure development and increasing demand cement its position as the preferred destination for commercial real estate in India.”

At the same time, there was a rapid increase in new project launches across the region. Cushman and Wakefield’s Market Beat Delhi NCR Residential Q3 2024 report highlighted a 121 per cent increase in new residential construction in Delhi-NCR in the first nine months of 2024 compared to the same period in 2023. Supporting this trend, JLL launched 23,500 residential units in Delhi-NCR in the first half of 2024, surpassing the total number of new launches in 2023 at 22,707 units. This increase highlights the region’s growing importance as a real estate development and investment hub.

Micromarkets are driving the luxury segment

Key micro-markets of Delhi-NCR including Gurugram, Noida and Ghaziabad led the growth in luxury real estate, driven by strong demand for luxury real estate and modern living spaces. New luxury residential projects have been launched in other micro markets such as Golf Course Road, Golf Course Extension Road, Sec-46 Gurgaon, Southern Peripheral Road (SPR), Dwarka Expressway and South Delhi. At the same time, Noida Sector 150, Noida-Greater Noida Expressway and Siddharth Vihar in Ghaziabad also witnessed a surge in buyer interest.

Salil Kumar, Director – Marketing & Business Management, CRC Group, said, “In 2024, the luxury real estate segment witnessed a shift towards experiential living. Buyers increasingly sought integrated designs, smart home technologies and wellness-focused amenities. These gave their luxury properties a new dimension, but also increased their status. Real estate developers, in turn, responded by incorporating green building principles and creating exclusive projects that focus on exclusive, high-end amenities and also promote well-being. Heading into 2025, we expect these trends to continue to gain momentum. It will further reshape the definition of luxury to suit lifestyle demands.”

Ravinder Choudhary, Vice President of Vegas Mall, said, “In 2024, the retail real estate sector witnessed a significant transformation as malls evolved from mere retail locations to vibrant community centers.” Across the National Capital Region, these malls have adopted a mixed-use model, retail -, entertainment, dining and wellness offerings integrated to meet a wide range of consumer needs. This revival of retail spaces has generated significant footfall and interest from both international and local brands. With rising disposable incomes and growing demand for experiential environments, we expect this trend to continue through 2025, leading to the development of more innovative, multi-functional shopping center projects that will redefine the retail experience.”

Outlook for 2025

Undoubtedly, 2024 was a landmark year for luxury real estate in India, reinforcing its status as a key market driver. Therefore, this growth will position the Indian luxury real estate sector for sustainable growth in the years to come. The sector is expected to remain resilient in 2025 as key cities and emerging micro-markets continue to dominate the luxury housing market. Favorable economic conditions, rising disposable incomes and investor confidence reflected in increasing land transactions will further accelerate the sector’s upward trend. As developers raise the bar on luxury living with state-of-the-art amenities and exclusive locations, 2025 is likely to see record-breaking sales and new project launches, cementing India’s position as a major player in the global luxury real estate market.