The year 2024 has been transformative for the Indian real estate sector, driven by economic resilience, technological advancements, and evolving consumer preferences. Here’s a closer look at the trends and developments by real estate leaders and experts that have defined the industry’s trajectory this year.
The industry experts are unanimous that the year 2024 has been a remarkable one for the real estate industry. While, there have been some hitches along the way, overall, all asset classes performed well and the sectors showed resilience in the face of global economic impacts. The record number of real estate IPOs this year, highlighted the investor’s confidence in the sector, while FDI inflows in real estate hit new highs, with a particular focus on infrastructure and housing development.
The Indian government continued to play a pivotal role in shaping the real estate landscape with supportive regulatory environment and recent regulatory push such as SM-REITs (Small & Medium REITs) and refinement of state-specific RERA (Real Estate Regulation & Development Authority Act) regulations.
Neeraj Bansal Partner & Head India Global, KPMG in India concurred, “India’s real estate sector is wrapping up 2024 on a high note, driven by substantial infrastructure improvements, rising incomes and stable interest rates. The surge in new project launches priced between INR10–80 crore and the record sale of the most expensive high-rise condominium highlight the growing demand for luxury real estate as a trusted investment choice. On the commercial front, the shift towards hybrid workspaces, cost-effective office solutions and sustainable developments continue to redefine urban landscapes. Office space absorption has grown by over 30 per cent in nine months of 2024 across top six Indian cities. The hospitality sector has also witnessed steady growth, making it an attractive investment class. Besides, sustained consumer spending and evolving retail hubs are also fuelling growth in the industry. Overall, it’s been a year of solid growth and transformation.”
Amit Diwan, Senior Managing Director & Country Head – India, Hines shared his perspective, “India continues to strengthen its position in the global economy, driven by a domestically led growth model and favorable demographics. The real estate sector has expanded across property types, fueled by rising urbanization, higher disposable incomes, and increasing demand for high-quality assets. As we move into 2025, this trend will be reinforced by India’s emergence as the “office of the world,” driven by continued influx of global capability centers. Real estate in India is also increasingly attractive to foreign investors, bolstered by rising institutional investment and supported by growing domestic capital. Backed by strong economic fundamentals, job creation, and consumption by the working-age population, India’s real estate sector will maintain a positive Beta for high-quality players.”
Dr Niranjan Hiranandani - Chairman- Hiranandani Group & NAREDCO shared his views, “In 2024, luxury housing witnessed remarkable growth. The impetus to infrastructure development has spurred demand across megapolis and Tier 2 cities. The property values have increased with a CAGR of 10-12%, substantiating northbound velocity. However, inflation and interest rates have stagnated for some time, causing challenges for affordable housing. Fiscal intervention is needed to stimulate its demand. On the other end, the paucity of greenfield land has led society and slum redevelopment projects to explode, driving demand for high-end housing. Rent markets were boosted by the work-from-office scenario, which rebounded commercial real estate demand.”
Boman Irani, President, CREDAI – National added, “The year 2024 has been a defining chapter for India’s real estate sector, with strong demand driving growth across tier 2 and 3 cities, alongside metropolitan hubs. Backed by the government’s unwavering commitment to infrastructure development and policies to promote homeownership, the sector has witnessed robust growth across residential, commercial, and emerging asset classes. Stable interest rates, improved transparency and the continued push for affordable housing have strengthened buyer confidence, particularly among first-time homeowners. We are witnessing a significant shift in homebuyers’ perception towards green housing and a surge in PropTech adoption. While the real estate sector still faces policy-related roadblocks that hinder its full potential, we are optimistic about the government streamlining processes to expedite project approvals and reduce costs.”
THE RESIDENTIAL SEGMENT CONTINUED TO THRIVE PROPELLED BY URBANIZATION AND LUXURY HOUSING DEMAND. TIER 2 AND TIER 3 CITIES EMERGED AS HOTSPOTS, DUE TO AFFORDABLE HOUSING AND COMMERCIAL REAL ESTATE GROWTH BACKED BY INDUSTRIAL CORRIDORS DEVELOPMENTS.
