Indian real estate expected to ride higher in 2025
December 31, 2024
Listen to this News
The Indian real estate market continues to demonstrate resilience and adaptability. A supportive regulatory environment and recent regulatory push such as SM-REITs (Small & Medium REITs) and refinement of state-specific RERA (Real Estate Regulation & Development Authority Act) regulations have enhanced transparency and institutionalization in the real estate sector.
Making a 2024 round up, Colliers India mentions that policy frameworks have driven a sense of fair pricing across real estate segments, attracting both developers and investors. 2024 is poised to be a standout year for Indian real estate across asset classes. Grade A office space uptake across the six major cities, propelled by demand from segments such as BFSI, engineering & manufacturing, healthcare, consulting and flex operators, is set to surpass previous records yet again. Leasing activity from both domestic occupiers, as well as Global Capability Centers (GCCs) is likely to end on a strong note in 2024. Residential activity is expected to match 2023 levels, with strong sales across affordable, middle-income and luxury segments. Similarly, industrial & warehousing demand will also remain healthy, buoyed particularly by occupiers from Third Party Logistics (3PL) and engineering segments. These segments are likely to cumulatively account for the bulk of the warehousing demand across the five major cities of the country. Real estate institutional investments for 2024, too will remain healthy, driven by continued domestic growth, stable macroeconomic indicators, and strong investor confidence throughout the year. Additionally, leading real estate players are keen on expanding their Tier-II/III city presence across segments led by infrastructural boost, urbanization and end-user consumption. This presents lucrative opportunities for growth and relatively higher returns across asset classes.
Looking ahead and mentioning trends in the new year, Colliers India report mentioned that 2025 is likely to be a year of consolidation and continued innovation in Indian real estate. Sustained confidence of domestic and international investors is widely anticipated to remain unabated. While residential and office markets can potentially stabilize after consecutive peaks, industrial & warehousing demand can witness heightened traction. The growth of the industrial & warehousing segment will be fueled by rising manufacturing output and a thriving logistics industry. Notably, alternative asset classes such as data centers, co-living and senior housing are likely to witness accelerated growth, reflecting a broader and steady shift in demographics and consumer preferences. Rapid urbanization, key infrastructure project completion and industrial corridor development will create new growth opportunities, particularly in Tier-II & III cities. Furthermore, the integration of technology and sustainability will shape the future of real estate development, reinforcing the sector’s role as a cornerstone of India’s economic growth.
“2025 could be another year, wherein multiple real estate classes ride high on investor and end-user optimism. While residential and office markets can potentially stabilize and continue to grow after consecutive peaks, industrial & warehousing demand can witness heightened traction. Notably, alternative asset classes such as data centers, co-living and senior housing are likely to witness accelerated growth, reflecting a broader and steady shift in demographics and consumer preferences. Additionally, the ongoing democratization of real estate is set to gain further momentum through retail investments in fractional ownership platforms and anticipated REITs & SM-REITs throughout 2025,” says Badal Yagnik, Chief Executive Officer, Colliers India.
Source: housing.com
Read all Thane Real Estate Latest News
To Know About Thane Real Estate Development Contact Us at 022 2580 6868
