Surge in luxury and premium housing demand
One notable real estate trend is the growing surge in demand for luxury and premium housing across Indian cities. Between 2019 and 2024, the share of premium housing in total residential demand climbed from just 6% to 16% from January to September 2024. Sale of properties valued over ₹4 Crores has increased by 37.8% during the same period. This growth is expected to continue, outpacing the affordable housing segment. Rising incomes, wealth creation, and urbanisation are driving this shift, with more buyers seeking spacious, amenity-rich homes. Non-Resident Indians (NRIs) are also investing heavily in high-end properties, with their share in real estate investments projected to reach 20% by 2025. The depreciation of the Indian rupee has made investing in Indian real estate more favourable to NRIs from an exchange rate point of view. Much of this increased investment is expected to be directed towards luxury properties. The demand for premium properties with modern facilities is also rising as sections of the upper middle class keep expanding in the metros and Tier-I cities. Developers are responding to these demands by launching more premium projects with features like concierge services, advanced security, and lifestyle amenities. In 2025, this real estate trend is expected to remain a growth driver, supported by rising disposable incomes and a preference for investment in tangible assets like real estate.
Expansion of office spaces in tier-2 cities
India’s office real estate landscape is witnessing a shift toward Tier-2 cities as businesses expand beyond traditional hubs like Bengaluru, Mumbai, and Delhi NCR. Cities such as Jaipur, Coimbatore, Chandigarh, Lucknow, Indore, and Kochi are becoming attractive due to lower real estate costs, better infrastructure, and a strong talent pool. Government investments in highways, airports, and smart city projects have further improved connectivity, making these cities viable business destinations. India’s national highway network has expanded 1.6x, and over 84 new airports have become operational in the past decade, enhancing accessibility. The rise of hybrid work models has also fueled demand, with companies setting up satellite offices near employees' residences. Office space absorption hit 53.4 million sq. ft in the first nine months of 2024, a record high, with a growing share in Tier-2 cities. As more corporations look to cut costs and decentralise operations, 2025 is expected to see further commercial real estate expansion in emerging cities, boosting this real estate trend. Tier-2 and even Tier-3 cities are emerging as real estate hotpots, with demand for quality office parks, IT campuses, and business centers on the rise.
Integration of sustainable and smart technologies
Sustainability and smart technology have become core priorities in Indian real estate development in 2025 becoming a strong emerging real estate trend. Both consumers and regulators are pushing for greener, more efficient buildings. Green construction is booming – the green buildings market in India is projected to reach $39 billion by 2025, as developers adopt eco-friendly designs and materials. Over 7,000 projects in India are already certified green (IGBC/LEED), encompassing about 1.37 billion sq. ft of space, and this footprint is growing each year. Developers are incorporating energy-efficient lighting, solar panels, and rainwater harvesting to meet regulatory norms and consumer demand. Buyers are actively seeking eco-friendly homes to reduce utility costs and carbon footprints.
Simultaneously, smart home adoption is rising, with the Indian smart home market expected to grow by 9.4% between 2024-28, reaching $9.2 billion by 2028. New residential projects feature IoT-based automation, AI-driven security, smart thermostats, and app-controlled appliances. Offices are integrating AI-powered energy management systems to optimise efficiency. Government policies now encourage sustainable construction with incentives like extra Floor Area Ratio for green projects. As a result, 2025 will witness this real estate trend becoming stronger with an increased adoption of solar-powered buildings, EV-ready infrastructure, and AI-driven property management, making real estate greener, smarter, and more sustainable.
Rise of integrated townships and community living
Integrated townships are becoming a key real estate trend in India, offering self-sufficient communities with housing, offices, schools, healthcare, and recreation in one location. These developments provide convenience, reduced commute times, and a better work-life balance, making them highly attractive to families and professionals. In 2025, demand for township-style living is growing, particularly in metro outskirts like Navi Mumbai, Noida, and Bengaluru’s Whitefield, where large land parcels support expansive, green developments. Buyers prefer these townships for safety, amenities, and a sense of community, with features like parks, gyms, and retail centers.
Real estate data shows more projects being launched as township formats on city outskirts where large land parcels are available. Consumers are also drawn to the social aspects – these developments foster a sense of community with events, clubs, and shared spaces. Integrated townships are gaining momentum as a key trend, supported by better infrastructure connecting suburban areas to city centers and stable home loan rates that make purchasing in these big projects feasible. For instance, in metro peripheries like Navi Mumbai, Noida, or Bengaluru’s Whitefield, integrated township projects have seen high uptake due to their blend of convenience and lifestyle. They often incorporate green spaces and pollution-free environments that standalone city apartments may lack. Developers highlight features like on-site schools, hospitals, and retail centers to market these projects. Additionally, modern townships are tech-enabled and sustainable – many have centralised waste management, water recycling, and renewable energy systems, aligning with buyers’ expectations for sustainability. This evolution toward “city within a city” projects in India is creating a new community living culture, and it is expected to remain strong in 2025 and beyond
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Growth of flexible office spaces and ‘core + flex’ models
Businesses in India are increasingly adopting flexible office spaces and ‘Core + Flex’ models in 2025 making this another strong real estate trend for 2025. Instead of committing to large headquarters, companies are combining permanent offices with flexible spaces like coworking centers to adapt to changing workforce needs.
As employees return to offices in greater numbers, the demand for office space is rebounding – vacancy rates in India’s offices dropped to their lowest in 14 quarters by late 2024. However, with it, the demand for flexible workspaces has also risen. Results from a study conducted by Awfis suggests that over 45% of companies now incorporate flexible workspaces even for their primary offices, while head offices continue to operate on the traditional lease basis. The hybrid work model has made decentralisation essential, allowing businesses to maintain a core office while using flex spaces for scalability. Coworking operators such as WeWork, Cowrks, and Awfis have expanded rapidly, offering companies cost-effective solutions. Offices are also being redesigned with hot-desks, collaborative lounges, and smart meeting spaces. As companies prioritise agility, the ‘Core + Flex’ model is expected to become the standard, balancing stability with the flexibility to expand or downsize as needed.
Conclusion
India’s real estate market in 2025 is undergoing significant transformation under various real estate trends.Factors like urbanisation, infrastructure development, and evolving consumer preferences are changing the face of Indian real estate rapidly. The demand for luxury housing continues to surge, fueled by rising disposable incomes and increased NRI investments. At the same time, Tier-2 cities are emerging as key commercial hubs, offering businesses cost-effective alternatives to metro locations.
Sustainability is playing a crucial role in real estate development, with green buildings and smart technologies becoming standard features in residential and commercial spaces. Integrated townships are reshaping urban living, providing self-sufficient communities with enhanced convenience and quality of life. Additionally, flexible office spaces and the ‘Core + Flex’ model are redefining workspace strategies, accommodating the shift toward hybrid work.
With government initiatives supporting growth and strong investment prospects, India’s real estate sector is set to expand further, reinforcing its position as a major contributor to the country’s economic development.
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