India's Real Estate Market Shows Signs of Stronger Growth, Experts Say
India’s real estate market is experiencing renewed confidence, driven by stable economic conditions, improved housing affordability, and increased demand in both residential and commercial sectors.
Real EstateNcrGdp GrowthHousing AffordabilityCommercial LeasingReal EstateSep 09, 2025
The boost reflects the strength of the country’s macroeconomic fundamentals, the steady improvement in housing affordability, and the visible surge in demand across both residential and commercial spaces.
There is a strong macroeconomic base beneath the growing optimism. Stable GDP growth and stable interest rates have created a predictable environment for buyers and investors, and consistent government policy support has increased trust in the sector's long-term stability.
The residential sector is also experiencing a visible uptick, with premium and luxury homes driving the market in large metropolitan areas. Due to a powerful combination of corporate presence, convenient access, and growing lifestyle infrastructure, Gurugram, Noida, and Delhi have become important hubs. According to the Savills India Delhi-NCR Residential Market Watch report, the market value of luxury floors in the capital grew by an average of 9 per cent annually in the first quarter of 2025.
Further on the commercial front, leasing activity touched 5.7 million sq ft across the top seven cities, a 69 per cent jump over the same period last year, with Delhi-NCR leading the charge in Q2, as per JLL’s report. Much of this growth stemmed from rising demand in the F&B sector, which accounted for 22 per cent of local leasing.
According to Ashok Singh Jaunapuria, MD and CEO, SS Group, the renewed optimism is clearly visible on the ground in Gurugram, where infrastructure upgrades, GCC’s presence, and lifestyle evolution are creating a self-sustaining growth cycle.
“We’ve observed a tangible shift in buyer behaviour where families are prioritising community living, security, and long-term value over short-term price considerations. This sentiment expedites decision-making process, preparing end-users to invest in premium properties. Hence, with projects aligning to evolving lifestyle needs and backed by a strong economy, Gurugram is not just riding the sentiment wave but shaping the very blueprint for NCR’s next decade of real estate growth,” he said.
Vishal Sabharwal, Head Sales, Orris Group, feels that the sentiment index’s positive swing isn’t just statistical, it mirrors the renewed confidence we see among homebuyers, investors, and corporates across NCR.
“In housing, end-users are upgrading faster, while in commercial real estate, demand from new-age businesses and flexible workspace operators is driving leasing activity. Importantly, the market today is far more structured, transparent, and quality-focused than a decade ago, and with policy stability, infrastructure delivery, and a clear appetite for both living and working spaces, we foresee NCR positioned to remain one of India’s most dynamic markets in the years ahead,” Sabharwal said.
The renewed sentiment is finding strong expression in Gurugram, particularly along the Dwarka Expressway, which has emerged as a catalyst for the city’s next phase of growth, said Vishesh Rawat, vice-president and head of marketing, sales and CRM at M2K Group.
“Sector 104, in particular, is witnessing a surge in interest as buyers recognise its unique blend of connectivity, premium living, and future-ready infrastructure. With the expressway linking Gurugram seamlessly to Delhi and the airport, the micro-market has gained tremendous traction from both end-users and investors, reaffirming Gurugram’s position at the forefront of NCR’s real estate revival,” he concluded.
Frequently Asked Questions
What is the current sentiment score for India's real estate market?
The current sentiment score for India's real estate market, as per the NAREDCO–Knight Frank Sentiment Index for April–June 2025, is 56, up from 54 in the January–March period.
What factors are contributing to the renewed confidence in India's real estate market?
Factors contributing to the renewed confidence include stable GDP growth, stable interest rates, improved housing affordability, and consistent government policy support.
Which cities are seeing significant growth in the luxury home market?
Gurugram, Noida, and Delhi are seeing significant growth in the luxury home market, driven by corporate presence, convenient access, and growing lifestyle infrastructure.
What is the trend in commercial leasing activity?
Commercial leasing activity has seen a significant increase, touching 5.7 million sq ft across the top seven cities, a 69 per cent jump over the same period last year, with Delhi-NCR leading the charge.
How is the market in Gurugram evolving?
The market in Gurugram is evolving with a focus on community living, security, and long-term value. The Dwarka Expressway is a key catalyst, particularly in Sector 104, which is gaining traction from both end-users and investors.
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