India Real Estate 2025: Resilience Amidst Correction and Transformation By Annuj Goel, Managing Director, Goel Ganga Developments

The Indian real estate market in 2025 is in a state of flux- a complex mix of resilience and recalibration. As someone who’s lived and breathed this sector every day, I can say with certainty: these aren’t signs of a slowdown. These are signs of a market evolving.

Q1 2025 saw a notable 28% year-on-year dip in residential sales across the top seven cities (Anarock, 2025). Yes, that’s a big number. But context matters. The decline was largely triggered by two things: price escalation and geopolitical anxiety. Hyderabad and Kolkata were hit hardest, while Bengaluru showed relative strength. And even as volumes dipped, prices surged – 10% to 34% increases depending on the region. That’s not a crash. That’s a course correction.

What we’re seeing now is a divided market. Affordable housing (sub-₹40 lakh) is quietly gaining traction again, especially in cities like Bengaluru and Chennai, where unsold inventory is shrinking. Meanwhile, luxury housing is booming on paper. Developers are launching high-ticket projects aggressively, but unsold stock in this segment has now touched 1.13 lakh units. The caution in buyer sentiment tells us that demand isn’t as deep as supply here.

This contrast highlights a key reality while aspirations are rising, not everyone can keep up. As developers, it’s on us to create homes that match both ambition and affordability.

Commercial real estate, meanwhile, is telling its own story. Office leasing is expected to cross 50 million sq. ft. this year, powered by Global Capability Centres (GCCs) – offshore units where global companies run key operations from India. Flex spaces are taking up nearly a quarter of total demand. The way India works is changing—and we’re redesigning how we build because of it.

Retail real estate is booming too. Mall vacancy is at an all-time low (1%-7%), and leasing has skyrocketed as food, fashion, and entertainment brands race into Tier 2 and 3 cities. This is not a blip- this is a structural shift in India’s consumption geography. Developers and investors who understand that are moving fast.

Institutional investment is also being reshaped by REITs, particularly in the office segment. And now, with reforms to SEZ rules, we’re seeing fresh interest in assets that were previously untouchable. Infrastructure, of course, continues to be a force multiplier- from new airports to metro networks and Smart Cities pushing growth into the hinterlands.

What I find most exciting, though, is the wave of tech and transparency. Prop-tech is no longer a buzzword. From AI-led due diligence to blockchain-based land records, these tools are shaping how we transact and how we build trust. That’s the foundation this industry has needed for decades.

Looking ahead, the signals are strong. Land buying hit new highs in 2024. Supply is about to be replenished. Luxury may continue to rise, but the mid-income segment is what we need to watch. If interest rates soften, we could see a rebalancing. Yes, EMIs are high. Yes, affordability is tight. But this is also when resilient markets find their footing.

This isn’t a year of retreat. It’s a year of reorganisation.

India’s real estate sector is building itself back stronger, smarter, and more sustainable. And that, as a developer and as an Indian, is something I’m proud to be a part of.