FROM VOLATILITY TO VALUE: HOW REAL ESTATE EVOLVED IN 2025

How did 2025 shape up for Indian real estate?

The year 2025 has been one of the most volatile and unpredictable years for Indian real estate in recent history. While the Diwali period was relatively muted, December saw a strong revival, clearly reflecting uneven market behaviour across the year. Customers took longer to make a decision, even though there was a healthy influx of new inventory across markets. Some months performed well, while others did not, which made it difficult for several developers to sustain momentum. Our experience has been positive in contrast to the market trend, VTP recorded a robust growth over last year’s numbers, with a consistent quarter-on-quarter increase in project sales.

What marked the defining inflection point for the sector in 2025?

The biggest inflection point was the uncertainty in the IT sector. Layoffs, hiring slowdowns, and concerns around job security led many buyers to defer home-buying decisions. Since Pune’s real estate market is heavily influenced by the IT sector, this uncertainty naturally impacted decision-making timelines. That said, unlike several other metros, Pune continues to remain largely an end-user-driven market. There is consistent housing demand, supported by steady job creation, a continuous inflow of first-time buyers transitioning from education to employment, and existing homeowners upgrading to larger and better homes.

What notable shifts defined homebuyer preferences in 2025?

Today’s homebuyer is not driven purely by affordability; they are focused on brand, quality and value. Buyers are far more cautious and analytical about their investments. They are seeking luxury, great amenities, larger layouts, expansive spaces, and most importantly, a secure investment that will appreciate over time. In our experience, developers with a strong brand ethos, consistent quality, clear differentiation, and assured delivery continue to see steady traction.

Which property segment showed the most traction in 2025?

The luxury housing segment stood out in 2025, driven by good end user demand for upgraded lifestyles, rich landscapes, grand luxurious amenities, large and spacious layouts, launched by credible developers with strong delivery track records. Money is not an object anymore; more focus is on the brand. For example, Branded Luxury residences segment is also doing very well and has proven itself to be more than just a niche segment.

One strategic advice to the industry for 2026

The real estate industry must remain cautious and disciplined. The market is fundamentally strong, but it is also far more selective, smarter and value driven than before. Homebuyers are well-informed and value quality construction, transparent pricing, and delivered projects.