Indian Housing Market - Outlook 2025

After an eventful year, the Indian housing market is likely to maintain its growth momentum in 2025. While all market verticals rose more than the estimated value, top cities in India did a commendable job.

Luxury residential properties are the blockbuster in Delhi and Mumbai property markets. The real estate experts feel the same trend will follow in the New Year. While Kolkata property market will maintain its rapport of being an affordable property market in India.

The Indian housing market is experiencing the greatest of all time as three parameters remain the stronghold. It includes the development of robust infrastructure, economic reforms, and urbanization.

The JLL report exhibits strong business sentiments for the first nine months of 2024, as nearly 363.2 million sq ft space (230,000 housing units) yielded business of Rs. 380, 000 crore.

The property market outlook 2025 analysis is a foundation of sturdy business in 2025. Also, considering the demand for sustainable lifestyle and income growth Indian real estate forecast for 2025 is positive.

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Indian Housing Market to be More Affordable in 2025

A major shift is likely for Indian properties in the year 2025. Primarily because a 50-basic point cut will ease home buying. This means, that ownership in the India housing market will become easy for first-home buyers and investors. The recent report by JLL indicates a positive for the market.

The Indian properties since 2022 had a setback majorly for price rise and interest rates stagnation.

But, the Delhi and Kolkata property markets aim to alter in the New Year.

2025 Outlook: Top Indian Cities and Expectations

Mumbai and Pune are expected to welcome fortune luck in 2025 with a high affordability ratio. However, the Kolkata property market is expected to stick with its affordability feature.

JLL’s Home Purchase Affordability Index (HPAI) predicts the scenario.

RBI (Reserve Bank of India) will be the driving force for the Indian housing market this year. It’s six-time no change in repo rate policy will reflect in the property business.

Newer Micro-Markets in Top Indian Cities to Rule Indian Real Housing Market

The new areas next to the major cities witness massive demand from investors and a surge in prices. According to the Anarock data, a 69 percent jump in six years exhibits the flourishing micro-markets in top Indian cities.

Interestingly, the trend will continue to be the same in 2025.

The market figures show, that Gunjur, Bengaluru’s adjoining area recorded an average residential price jump. From Rs. 5,030 rupees per sq.ft in 2019 to Rs. 8,500 per sq. ft in Q3, 2024.

Similarly, Thannisandra main road a popular name in the Indian housing market, witnessed a price rise. In the same tenure, prices escalated from Rs. 5,175 per Sq ft to Rs. 8,400 per Sq. ft.

Moving to the NCR Delhi property prices, residential property prices in the Noida Expressway locality rose by 66% in the last six years. Recording figure from Rs. 5,075 per sq ft in 2019 to Rs. 8,400 per sq ft in Q3, 2024.

Parallel to this, Dwarka Expressway, the getaway to Gurugram recorded a significant price rise. From Rs. 5,359 per sq ft in 2019 to Rs. 10,350 per sq ft in Q3, 2024. Panvel in the MMR region witness a 58% rise in the past six years. Followed by Worli with 37%, Lower Parel - 49%, and Virar - 58% property price rise.

Indian Housing Market Outlook 2025 and Experts Predictions

Samantak Das, Chief Economist and Head of Research & REIS, India, JLL said, “While domestic economic forecasts indicate some softness in growth, India is still projected to be the best-performing large economy globally, supporting household income growth… The anticipated interest rate reduction, combined with moderate price growth and sustained income increases, are expected to create a conducive environment for home purchases over the next 12-18 months with affordability levels set to improve to their best since 2022 for all cities, barring Bengaluru and Delhi NCR.”

Santosh Kumar, Vice Chairman, Anarock Group said, “The last few years have seen several luxury projects launched in these peripheries to meet demand. With sufficient land available in the peripheries, developers have zeroed in on them to launch projects there. Improved connectivity has made it feasible for buyers to live in larger societies with generous green open spaces. This trend has become very prevalent after the COVID-19 pandemic.”

On the whole, the Indian housing market in 2025 will hopefully turn out positive for realtors and investors. Along with wealth creators, aspiring property owners will unlock the door of their dream home.