Housing quietly but firmly emerged as the backbone of NCR’s real estate recovery in 2025. Unlike past boom-and-bust cycles, the year unfolded with a sense of restraint and purpose. Buyers were no longer chasing quick appreciation. Instead, delivery certainty, everyday livability, and long-term value shaped decisions, setting the tone for a steadier and more grounded market phase.
This shift was most visible in the nature of demand. End-users dominated residential purchases across NCR, signalling a move away from speculative activity that had once fuelled volatility. Homes were chosen not just for returns, but for how they would be lived in, marking a more mature approach to property buying.
Gurugram remains the luxury housing anchor
Within NCR, Gurugram remained the undisputed housing anchor through 2025. Sustained end-user interest, particularly in the luxury and upper-mid segments, kept the market active without pushing it into overheated territory. In the first half of 2025 alone, Delhi-NCR recorded over 5,100 luxury home sales, with Gurugram accounting for the bulk of premium transactions. The numbers reinforced the city’s dominance at the top end of the housing market.
Demand stayed sharply focused along infrastructure-led corridors such as the Dwarka Expressway, Southern Peripheral Road (SPR), and Golf Course Road. Buyers gravitated towards larger homes with better amenities, lower density, and stronger neighbourhood planning, reflecting changing lifestyle expectations after the pandemic years.
Sandeep Chhillar, Founder & Chairman, Landmark Group, says, “2025 has been a remarkable year for the real estate sector, registering impressive growth numbers across the residential and commercial markets in key cities. Within NCR, Gurugram led the growth, particularly in the luxury housing and Grade-A office segments, benefiting from corridor-led developments along Golf Course Road, Golf Course Extension Road, Dwarka Expressway, and SPR. The city witnessed a steep hike in price appreciation alongside healthy leasing activity for Grade A office space, primarily led by GCCs. The coming year outlook remains positive for the market with sustained demand expected in well-planned micro-markets, continued institutional interest, and infrastructure-led expansion."
Demand stays strong, but without overheating
Despite rising prices, market participants noted that demand in 2025 remained stable rather than frenzied. Shyamrup Roy Choudhury, Founder and Managing Director, Aura World, points to both monetary support and a mindset shift among buyers. “In 2025, demand in Gurugram stayed strong without feeling overheated. Further, the RBI’s total 125 basis points repo rate cut eased affordability pressures for buyers. More importantly, luxury homes today are being bought with a long-term mindset and not short-term gains. As we look toward 2026, that trend becomes even more relevant. With India’s economy expected to grow steadily, luxury housing will benefit from sustained wealth creation rather than cyclical spikes.”
A structural pivot year for Indian real estate
At a broader level, 2025 was less about chasing volumes and more about redefining priorities across real estate segments. Ashwinder R Singh, Chair, CII Real Estate; Vice Chair, BCD Group; Advisor, NAR-India, frames the year as a turning point rather than a peak. "2025 was less about cyclical movement and more about structural transformation. It was not the peak of a cycle but a pivot — from volume to value, speculation to purpose-driven development, and metro-led growth to regional diversification. Premiumisation overtook mass housing as aspirations reshaped demand and supply. Institutional capital remained committed but increasingly selective and disciplined. India’s real estate canvas diversified, with warehousing, data centres, senior housing, and integrated townships moving into the mainstream. The sector demonstrated resilience despite global headwinds such as interest-rate pressures and supply-chain disruptions. Finally, Tier-2 and Tier-3 cities began asserting themselves as the next growth frontiers.”
He adds that 2026 is likely to favour value over sheer scale. "Based on 2025 trends and macro indicators, 2026 is likely to be defined by value-driven growth rather than sheer volume. Residential launches may slow in absolute numbers, but average ticket sizes are expected to rise as premium housing dominates supply. Affordable housing could remain under pressure unless supported by targeted policy interventions. Warehousing and industrial real estate are poised to remain the strongest growth engines, driven by manufacturing, logistics expansion, and infrastructure development across new corridors. The office sector is expected to stay in consolidation mode, with occupiers favouring high-quality Grade-A spaces over speculative supply. If guided by quality, clarity, and discipline, real estate can emerge as one of the foundational pillars of India’s growth story, leading up to 2030."
Infrastructure-led corridors fuel luxury confidence
Luxury housing momentum also drew strength from improving connectivity and social infrastructure. Sauarbh Saharan, Group Managing Director, HCBS Developments, says, “The demand for luxury housing reached a new peak across NCR, making 2025 an exceptional year for the real estate sector. Improved infrastructure visibility and better access to Delhi played a critical role in this confidence, and corridors like Dwarka Expressway clearly benefited from that shift. The quality of enquiries also improved markedly this year. Heading into 2026, with wealth creation continuing and social infrastructure maturing, we expect these well-connected luxury corridors to remain stable, resilient and strongly preferred.”
Tier-II cities step into the spotlight
Beyond NCR’s core markets, Tier-II cities began carving out independent housing narratives. Locations such as Mohali, Chandigarh, Dehradun, and Jaipur saw steady traction in lifestyle housing and plotted developments, supported by affordability and improving connectivity.
Anarock data shows land transactions in the first half of 2025 surpassed full-year 2024 levels, with Tier-II and Tier-III cities accounting for a growing share of overall land deals.
Piyush Kansal, Executive Director of Royale Estate Group, notes, “In 2025, the Punjab real estate market demonstrated both resilience and maturity. Strong infrastructure momentum from enhanced connectivity around Mohali to expanding urbanisation in Tier-2 cities has underpinned steady residential and commercial demand, particularly in well-planned townships and mixed-use zones. NRI investments in cities like Amritsar surged significantly, reflecting growing confidence in premium and lifestyle properties. Although selective price corrections, such as those seen in Mohali’s industrial land auctions, indicate a more calibrated investment landscape, overall fundamentals remain solid.”
Tier-II housing writes its own growth story
Lucknow emerged as a standout example of this shift, driven by genuine end-user demand rather than spillover from metros.
Preksha Singh, CEO of Agrasheel Infratech, highlights Lucknow as a case in point. "One of the most important shifts in 2025 was how Tier-II cities began writing their own housing growth stories, rather than borrowing momentum from metros. Lucknow is a strong example. The city defies the trend with a 25% jump in the sale of residential units, led by the end-users, local businessmen, and professionals moving back to the city owing to the better quality of life on offer. This has ensured a balanced and healthy real estate cycle. Going into 2026, Tier-II cities are set for more growth, due to the economic stability, better connectivity, and the need for lifestyle-driven living options, away from the muddled traffic conditions of the metro cities."
Noida–Greater Noida drives commercial confidence
While housing set the residential tone, NCR’s commercial confidence found its strongest footing in Noida–Greater Noida. Demand from IT services, GCCs, data centres, and manufacturing-linked occupiers remained steady, reinforcing the region’s office and retail outlook.
Viren Mehta, Founder & Director- Elite PRO Infra, says, "In 2025, Indian real estate shifted from reactive moves to a more structured and strategic approach. Buyers and occupiers became increasingly selective, focusing on location, long-term value, and operational efficiency. This shift led to certain micro-markets and asset classes outperforming others. Overall, the sector is showing signs of maturity, with greater stability and clearer opportunities for sustainable growth moving into 2026."
Retail gets a fresh push from infrastructure
Retail real estate also reached a turning point in the Noida–Greater Noida region, aided by strong brand interest and upcoming infrastructure.
Sanchit Bhutani, Managing Director, Group 108, said, “2025 marks a clear inflection points for retail growth in the Noida–Greater Noida region. We saw strong interest from both global and domestic brands across well-performing and emerging retail destinations, with many actively establishing and expanding their presence—particularly along the Noida Expressway. The upcoming Noida International Airport is acting as a significant catalyst, reshaping brand perspectives on catchment strength, connectivity, and long-term footfall potential. Consequently, we are seeing rising demand for strategically located, high-quality retail developments.”
A more mature phase for NCR real estate
As NCR looks ahead, 2025 stands out as the year the region stepped into a more defined and mature real estate phase. Housing-led stability, backed by genuine end-user demand, and commercial confidence anchored in quality leasing kept volatility in check.
Clearer role definition across Gurugram, Noida–Greater Noida, and emerging Tier-II cities is now adding depth and resilience to the region’s evolving property cycle.
