2024: A Year of Transformation and Growth in the Indian Real Estate Market

In 2024, the Indian real estate market witnessed a significant transformation, with a focus on luxury residential and commercial properties. The year saw a surge in demand, innovative practices, and supportive government policies, paving the way for conti

Real EstateLuxury HomesCommercial PropertiesSustainabilityReitsReal EstateDec 30, 2024

2024: A Year of Transformation and Growth in the Indian Real Estate Market

Real Estate:In 2024, the real estate market in India solidified its role as a symbol of prestige, with opulent residences and premium commercial properties dominating the investment interests of wealthy purchasers.
Fueled by heightened demand, innovative practices, and supportive government policies, the market has seen a vigorous performance that has profoundly altered the residential and commercial sectors, setting the stage for continued growth in 2025.

Residential Sector The Pinnacle of Luxury Living

Luxury homes emerged as a dominant trend this year, catering to the rising demand from High Net Worth Individuals (HNIs) and Non-Resident Indians (NRIs).
Prime urban areas saw an uptick in gated communities, villas, and condominiums, reflecting the aspiration for exclusivity and convenience.
Tier-2 and tier-3 cities also experienced increased traction as buyers sought spacious properties offering a better quality of life and connectivity.

Robin Mangla, President of M3M India, commented, “2024 has been a landmark year for M3M India.
We have achieved exceptional success in the luxury real estate market and high-end commercial projects.
Our focus on innovation and delivering world-class developments has solidified our leadership in North India's real estate sector.
We reported a 37% growth in sales, driven by sustained demand for our premium offerings.
Our projects set new benchmarks in architectural excellence, offering unparalleled sophistication and modernity.
As we move into 2025, we remain committed to shaping the future of real estate with innovation, sustainability, and excellence at the core.”

On the other hand, the mid-income and affordable housing segments continued to benefit from government initiatives like the Pradhan Mantri Awas Yojana (PMAY) and reduced stamp duties in several states.
These measures enhanced affordability and boosted buyer sentiment, making homeownership more accessible.

Commercial Sector A Surge in Mixed-Use Developments

The commercial real estate sector also thrived in 2024, driven by the resurgence of co-working spaces, expansion of IT parks, and high demand for retail spaces.
Mixed-use developments combining retail, office, and residential offerings gained momentum, catering to the growing urban population’s need for integrated living.

Aman Sharma, Managing Director of Aarize Group, said, “We are proud of the significant milestones achieved in 2024.
Our luxury mall on the Dwarka Expressway marks a new era in luxury retail and commercial spaces.
This development is poised to revolutionize the shopping experience with its focus on luxury, comfort, and style.
Alongside this, we have expanded our portfolio with innovative SCO (Shop Cum Office) spaces that cater to the evolving needs of modern businesses.
With a strong focus on sustainability and cutting-edge design, we remain committed to pushing the boundaries of real estate development and delivering unmatched value to our clients.”

Sustainable Real Estate A Priority for Buyers

Sustainability emerged as a critical factor influencing real estate investments.
Developers increasingly focused on green building certifications and energy-efficient infrastructure.
This trend aligned with global ESG (Environmental, Social, Governance) goals, attracting both domestic and international investors.

Sudeep Bhatt, Director Strategy at Whiteland Corporation, noted, “2024 has been a lucrative year for the Indian real estate sector.
It has shown resilience in the face of shifting demands, fluctuating interest rates, and global economic uncertainties.
The year saw significant infrastructure development in the NCR market, along with a growing emphasis on government initiatives like the Gati Shakti National Master Plan, SWAMIH Fund, and various infrastructure projects in urban and rural areas.
These developments have opened up new opportunities for the sector’s growth.”

There has been a rise in focus on sustainability, with developers incorporating environment-friendly construction and amenities in their projects.
“As we look into 2025, the situation looks promising for the real estate sector.
Elements like tax incentives, increasing availability of affordable housing loans, and blockchain-based transactions will support the sector’s rapid development.
The upcoming year will offer varied opportunities, where developers can focus on including technology into their projects, green building certification, and creating projects that meet the growing demand for work-life balance,” Bhatt added.

Future Prospects and Outlook

With the Noida International Airport nearing completion and infrastructure upgrades in cities like Hyderabad and Pune, the sector is poised for exponential growth.
The rise of REITs (Real Estate Investment Trusts) further democratized real estate investments, offering retail investors access to commercial properties.

Ashish Sharma, AVP Operations at Brahma Group, stated, “2024 has been a pivotal year for the commercial real estate sector.
Gurugram has solidified its position as a hub for office spaces, retail centers, and mixed-use developments.
The market witnessed robust leasing activity, driven by the rise of Grade A office spaces, sustainability-focused projects, and the adoption of tech-enabled smart buildings.
According to a recent report by Cushman and Wakefield, gross office space leasing in 2024 is expected to reach 83-85 million sq.
ft, with GCCs projected to deliver even higher volumes in 2025, accounting for an estimated 35% of total leasing activity.
As we move into 2025, the sector is set for further expansion, encouraged by infrastructure improvements and a thriving economy.
Developers remain committed to creating innovative, future-ready spaces that meet evolving corporate demands and reinforce Gurugram’s stature as a commercial powerhouse.”

As the year concludes, real estate stands as an emblem of aspiration and resilience, adapting to the needs of a dynamic market and shaping the future of India’s urban and economic landscape.

Frequently Asked Questions

What are the key trends in the residential real estate sector in 2024?

In 2024, the residential real estate sector saw a surge in luxury homes, catering to HNIs and NRIs. Gated communities, villas, and condominiums became popular, especially in prime urban areas. Tier-2 and tier-3 cities also gained traction as buyers sought spacious and well-connected properties.

How did government initiatives benefit the mid-income and affordable housing segments?

Government initiatives like the Pradhan Mantri Awas Yojana (PMAY) and reduced stamp duties enhanced affordability and boosted buyer sentiment in the mid-income and affordable housing segments, making homeownership more accessible.

What is the significance of mixed-use developments in the commercial real estate sector?

Mixed-use developments, combining retail, office, and residential offerings, gained momentum in 2024. These projects cater to the growing urban population’s need for integrated living and have become a significant trend in the commercial real estate sector.

How did sustainability become a critical factor in real estate investments?

Sustainability emerged as a key factor, with developers focusing on green building certifications and energy-efficient infrastructure. This trend aligned with global ESG goals and attracted both domestic and international investors.

What are the future prospects for the real estate sector in 2025?

The real estate sector is poised for exponential growth in 2025, driven by infrastructure improvements, the rise of REITs, and a thriving economy. Developers are committed to creating innovative, future-ready spaces that meet evolving corporate and residential demands.