The Future of Real Estate in India: Key Trends to Watch in 2025

The Indian real estate market has been on a remarkable run over the past few years. From the post-pandemic surge in housing demand to rapid infrastructure development, the industry has been evolving at a rapid pace. But what lies ahead? To get a clearer picture, I recently sat down with Mr. Nagaraju Routhu, CEO of Experion Developers, on my Urban Insights series. Here’s what we uncovered about the future of Indian real estate.

1. The Real Estate Boom: Will It Continue?

Between 2021 and 2024, the Indian real estate sector experienced a significant surge in demand. According to Mr. Routhu, this was largely driven by pent-up demand from the sluggish period between 2013 and 2020, coupled with a shift in homebuyers' priorities post-COVID. People wanted bigger homes, better amenities, and a focus on quality living.

Looking ahead to 2025, while the market may not see the same explosive growth, it’s unlikely to decline. Prices are stabilizing, but long-term appreciation of 15-20% per annum remains a realistic expectation. Affordability remains a concern, and ensuring a balance between luxury and budget housing will be crucial.

2. Premiumization: The Rise of Bigger and Better Homes

A striking trend in recent years has been the growing preference for larger homes. More three- and four-bedroom apartments are being built, and demand for affordable housing has declined. While this is a reflection of rising aspirations and incomes, it also presents a challenge—what about the millions of middle-income and lower-income families who still need housing? Government intervention and balanced development will be necessary to address this gap.

3. The Green Building Movement: Is It Making a Difference?

Sustainability is a buzzword, but how much does it really matter to homebuyers? According to Mr. Routhu, while developers are keen on obtaining green certifications, most residential buyers prioritize price, location, and layout over environmental factors. However, in commercial real estate, corporates are actively choosing eco-friendly office spaces as part of their sustainability policies.

Despite this, the real estate industry must push forward with green initiatives. Simple changes like better ventilation, optimized natural lighting, and energy-efficient design can improve both sustainability and livability.

4. Location, Location, Location: How Has It Changed?

During the pandemic, people moved further from city centers in search of larger homes. But as offices have reopened, there’s been a shift back towards convenience and proximity to workplaces. With improved infrastructure—such as expressways and metro expansions—commute times are being reduced, making suburban living more viable without sacrificing accessibility.

5. PropTech: The Game-Changer in Real Estate

Technology is reshaping the industry, from digital marketing to construction efficiency. Mr. Routhu pointed out that while most home purchases still happen offline, buyers now conduct extensive research online before stepping into a sales office. Virtual reality (VR) tours, artificial intelligence (AI) in design, and predictive analytics in construction are becoming increasingly common.

Builders are also adopting automation in construction to improve efficiency and reduce costs. The widespread use of BIM (Building Information Modeling) and smart sensors is expected to further revolutionize real estate development in the coming years.

6. The Challenge of Skilled Manpower

One of the biggest hurdles for developers is the shortage of skilled workers. Unlike factory jobs, construction work is seasonal and labor-intensive, leading to frequent workforce churn. Addressing this challenge will require industry-wide training programs and policies that promote stability for workers.

7. The Rise of Small-Town India

Real estate is no longer just about the top metro cities. Tier 2 and Tier 3 cities like Indore, Visakhapatnam, and Amritsar are witnessing growing demand as companies set up offices in these locations. With improved infrastructure and better connectivity, smaller cities are becoming attractive hubs for both businesses and residents.

Looking Ahead to 2025

If there’s one key takeaway from this discussion, it’s that the Indian real estate sector is evolving fast. Some of the major trends we can expect to see in 2025 include:

• A shift towards sustainable development as green building practices gain more traction.

• Greater adoption of PropTech to streamline home buying and construction processes.

• Continued growth in smaller cities as businesses decentralize from metro hubs.

• A renewed focus on affordable housing, ensuring that all income groups have access to quality homes.

  
  

As we move forward, the real estate industry must strike a balance between growth and affordability, innovation and tradition, and sustainability and economic viability. The key to success will be adapting to these changes while keeping the needs of homebuyers at the forefront.

“Real estate is not just about buying property—it’s about investing in a future lifestyle.”

What do you think will be the biggest trend in real estate in 2025? Share your thoughts in the comments!

Speakers Profile:

Mr. Nagaraju Routhu, CEO of Experion Developers Pvt Ltd

Mr. Nagaraju Routhu, is an MBA from Indian Institute of Management, Lucknow, and a B.E (Mechanical) from Osmania University. During his career, he has worked with prestigious organizations like Hero Realty Pvt Ltd, Unitech Ltd and Maruti Suzuki India Ltd. He has contributed immensely to both residential and commercial spaces with the unique distinction of integrating customer expectations with the company’s vision and mission. Further to this, he has been instrumental in making Experion Developers Pvt Ltd a trustworthy brand with the objective of introducing The Positive Side of Life to the Indian Housing Market.