The Indian real estate sector has started 2025 on a positive note and has reported unprecedented investment growth that has surprised even some of the biggest industry veterans. The first quarter alone has brought in more than ₹60,000 crore in investments from domestic and foreign sources, marking a 20% increase from the same period last year.
What is the source of this momentum? Industry experts indicate a multitude of factors: urbanization, government backing of infrastructure projects, and the demand for quality housing and commercial units. But it is not only the large players that are in on the celebrations—mid-size developers, local brokers and small investors also join in on the optimism.
“We’ve never witnessed this amount of buyer confidence underway months of a year,” says Neha Kulkarni, a Pune-based consultant in real estate. “From first-time homebuyers of young professionals to NRIs coming back in the Indian market, it seems the next phase has begun.
Both luxury developments and affordable housing projects are seeing high bookings. Unexpected hotspots such as Indore, Nagpur, and Kochi, Tier-2 and Tier-3 cities, also have benefitted from improved connectivity and smart city projects.
A recent report by Knight Frank India highlights a wealth of institutional investments that have rapidly increased in commercial real estate with IT hubs returning to pre-COVID space levels and co-jobs booming in a big way. Sustainability is trending hard with investors Meeting prefer green-certified projects.
With that kind of growth sincere optimism in early 2025, will mark a tipping point in the real estate landscape, and if the momentum continues, this can prove to be one of the biggest pivot of change that the sector has seen in over a decade.
Read More: Real estate sector sees record investment growth in early 2025
