2024: A Year of Transformation for Residential and Commercial Real Estate

2024 marked a transformative year for the real estate market, with luxury residences and premium commercial properties leading the way. Heightened demand, innovative practices, and supportive government policies fueled a robust performance, paving the way

Real EstateLuxury HomesCommercial PropertiesSustainable Real EstateMixeduse DevelopmentsReal Estate MumbaiJan 03, 2025

2024: A Year of Transformation for Residential and Commercial Real Estate

Real Estate Mumbai:In 2024, the real estate market 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, a vigorous performance has profoundly altered the residential and commercial sectors, paving the way for continued expansion 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.
Moreover, tier-2 and tier-3 cities experienced increased traction as buyers sought spacious properties offering a better quality of life and connectivity.

Robin Mangla, President of M3M India, said, “2024 has been a landmark year for M3M India, marked by exceptional achievements in the ultra-luxury real estate market and high-end commercial projects.
Our unwavering focus on innovation and delivering world-class developments has solidified our leadership in North India’s real estate sector.
We are pleased to report a notable sales achievement, with a 37% growth in the calendar year, primarily driven by sustained demand for our premium offerings.
This year, our projects have set new benchmarks in architectural excellence, offering unparalleled sophistication and modernity.
As we look ahead to 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.

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, “As 2024 draws to a close, Aarize Group takes pride in the significant milestones achieved this year.
We have successfully introduced an ultra-luxury mall on the Dwarka Expressway, marking a new era in luxury retail and commercial spaces.
This development is poised to revolutionize the shopping experience with its unprecedented focus on luxury, comfort, and style, offering a seamless blend of high-end retail, entertainment, and dining.
Alongside this, we continue to lead the way in developing innovative Shop Cum Office (SCO) spaces, which cater to the evolving needs of modern businesses.
With a strong focus on sustainability, luxury, and cutting-edge design, we have expanded our portfolio with projects that set new industry standards.
As we look ahead to 2025, Aarize Group remains committed to pushing the boundaries of real estate development, ensuring that we continue to deliver unmatched value to our clients and stakeholders, creating spaces that elevate both lifestyle and business potential.”

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, said, “The year 2024 has been lucrative for the Indian real estate sector.
It has shown resilience in terms of shifting demands, fluctuating interest rates, and global economic uncertainties.
During 2024, a lot of infrastructure development took place in the NCR market.
The year also saw a growing emphasis on government initiatives like the Gati Shakti National Master Plan, SWAMIH Fund, and various infrastructure projects in urban and rural areas.
Such developments have opened up new doors 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 are going to be some of the supporting elements in the real estate 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 are answer to the growing demand of homebuyers 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, said, “2024 has been a pivotal year for the commercial real estate sector, with Gurugram solidifying 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.
Moreover, 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.
Furthermore, 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 were 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 experienced increased traction due to the demand for spacious and well-connected properties.

How did government initiatives support the real estate market in 2024?

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

What are mixed-use developments and why are they significant in the commercial real estate sector?

Mixed-use developments combine retail, office, and residential spaces, catering to the growing urban population's need for integrated living. These developments gained momentum in 2024, driven by the resurgence of co-working spaces and expansion of IT parks.

Why is sustainability becoming a priority for real estate investors?

Sustainability emerged as a critical factor in 2024, with developers focusing on green building certifications and energy-efficient infrastructure. This trend aligns with global ESG goals and attracts 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 upgrades, the rise of REITs, and a thriving economy. Developers are committed to creating innovative, sustainable, and tech-enabled spaces to meet evolving corporate demands.