PREMIUM HOUSING & FLEX-WORKSPACES EMERGED AS OUTPERFORMERS IN 2025

How would you describe 2025 for Indian real estate?

2025 marked the point where Indian real estate moved beyond recovery and demonstrated long-term stability and maturity. Despite softer volumes, the residential segment saw rising sales values and price appreciation, led by heightened demand for luxury homes. At the same time, there was increased confidence from domestic and global institutions, driven by improved regulation, proven REIT performance, and disciplined developers who helped position real estate as a credible, long-term investment class.

What would you consider the single biggest inflection point for the sector in 2025?

The formal recognition of REITs as equity instruments by SEBI marked one of the biggest inflection points in the last year, significantly deepening institutional and retail participation in commercial real estate.

What were the key shifts in homebuyer preferences in 2025?

Homebuyers clearly prioritised quality over quantity – with emphasis on long-term value, lifestyle, and execution credibility rather than speculative gains. As luxury housing became increasingly shaped by cosmopolitan mindsets, there was a clear shift toward curated, integrated living formats and professionally managed, globally benchmarked residential environments. Even within the mid-premium segment, homebuyers favoured homes that could host festive celebrations and milestones. Importantly, consumers showed a willingness to stretch budgets for residences delivered by trusted Grade A developers that offered both scale and a lifestyle aligned with their aspirations. Supportive Repo Rate cuts further improved homebuyer sentiment, strengthening confidence in long-term home ownership. While end-users continued to dominate demand, real estate also emerged as a preferred investment asset class, underpinned by market stability.

Which real estate segment stood out in 2025?

Residential real estate, particularly luxury and premium housing, clearly stood out in 2025. Higher-ticket homes drove strong growth in sales value and price appreciation, underscoring the resilience of end user demand. This momentum has continued to be supported by rising affluence, increased NRI investments, evolving lifestyle aspirations, and a growing preference for more expansive homes with a glut of amenities. Alongside residential, the flex workspace segment emerged as a clear outperformer within commercial real estate, benefiting from GCC-led demand and the need for flexibility in today’s modern and evolving work environment. The growing share of flex spaces in Grade A office absorption highlighted a structural shift in how occupiers approach workspace strategy.

One strategic advice to the industry for 2026

Build for long-term relevance – because credibility, not scale alone, will define leadership in the next phase of India’s real estate growth.