HOW INDIA’S REGIONAL REAL ESTATE MARKETS SHIFTED FROM SCALE TO SUBSTANCE IN 2025

The Indian real estate market in 2025 moved away from headline-grabbing volumes and entered a more mature phase defined by value, quality, and regional depth. From premiumisation in metros to the rise of Tier-II and Tier-III cities, the year marked a structural pivot rather than a cyclical peak. Institutional capital stayed invested but selective, infrastructure continued to redraw demand maps, and new asset classes entered the mainstream. This regional report captures how major cities and emerging markets performed in 2025, drawing on voices from industry leaders and market data to map the road ahead.

2025: The Year the Market Changed Its Centre of Gravity

Ashwinder R Singh, Chair, CII Real Estate; Vice Chair, BCD Group; and Advisor, NAR-India, captured the underlying mood of the year when he said, “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.” According to Singh, premiumisation overtook mass housing as buyer aspirations reshaped both demand and supply. Institutional capital remained committed but grew more disciplined, while newer segments such as warehousing, data centres, senior housing, and integrated townships moved firmly into the mainstream. Despite global headwinds like interest-rate pressures and supply-chain disruptions, the sector showed resilience. Most notably, Tier-2 and Tier-3 cities began asserting themselves as credible growth frontiers. Looking ahead, Singh noted that 2026 is likely to favour value-driven growth over sheer volume, with rising ticket sizes, pressure on affordable housing without policy support, and continued strength in industrial and warehousing real estate.

Bengaluru: Consolidation with Confidence

In Bengaluru, 2025 reinforced the city’s reputation as a stable, institutionally attractive market. Pavitra Shankar, Managing Director, Brigade Enterprises Limited, observed that “the real estate sector in our country demonstrated remarkable stability and depth, strengthened by institutional investments of around USD 5–7 billion.” Residential, commercial, and hospitality assets all contributed to this momentum, reflecting the sector’s ability to adapt to regulatory reform and infrastructure expansion. Shankar noted that 2026 will extend this phase of healthy consolidation, with urban renewal, high quality residential projects, and technology-driven construction shaping the next phase. Homebuyers increasingly prioritised delivery, transparency, and trust, giving organised developers an edge. Demand for Grade-A office spaces remained resilient, across both traditional leasing and flex models, reinforcing India’s position as a global business hub despite tariff-related uncertainties. He also pointed to rising premium residential and Grade-A office demand in Tier-2 cities such as Mysore, Coimbatore, Kochi, and Vijayawada, alongside accelerating proptech adoption and a hospitality upswing driven by tourism and MICE activity.

Pune: Infrastructure as the Engine of Confidence

For Pune, 2025 was both transformative and affirming. Manish Jain, President, CREDAI Pune, described it as a year shaped by “landmark policy moves — including the GST reduction on cement and key raw materials — coupled with India’s remarkable rise in the luxury housing segment.” Buyer preferences shifted toward larger, well-designed homes and integrated townships built around a live-work-play ethos. Jain highlighted Pune’s infrastructure surge, from the Purandar International Airport and metro expansion to connectivity through NMIA and the proposed Pune–Chhatrapati Sambhajinagar corridor. These developments, combined with investor confidence, sustained market activity. Despite not being a port or capital city, Pune emerged as one of India’s most dynamic real estate markets, supported by IT, manufacturing, education, and cultural capital. Jain expressed optimism that the city’s balanced affordability and quality of life will keep it at the forefront of residential demand in 2026.

Ghaziabad: Connectivity Unlocks Momentum Ghaziabad’s real estate narrative in 2025 was closely tied to capital flows and infrastructure. CJ Singh, COO, Wave City, Ghaziabad, noted that “capital inflow into the Indian real estate stood at $14.3 billion, a 25% Y-o-Y growth,” with land, development sites, and warehousing attracting maximum investment. Developers and institutional investors together led most deployments, with residential and office projects accounting for over 60 percent of inflows. Ghaziabad benefited directly from the Delhi Meerut Expressway and the Regional Rapid Transit System, positioning it as a strong NCR growth centre. Singh believes 2026 could be a breakthrough year, driven by lifestyle-oriented, sustainable housing and the rise of redevelopment projects. Industrial and warehousing demand is also expected to accelerate as manufacturing and supply chains modernise.

Dholera and Gujarat: Infrastructure Before Occupation In Gujarat, resilience in 2025 contrasted with moderation in several metro markets. Lalit Parihar, Managing Director, Aaiji Group, pointed out that cities such as Ahmedabad, Vadodara, Surat, and Gandhinagar performed steadily due to better affordability, corporate investment inflows, and infrastructure momentum. Dholera emerged as a focal point, backed by the Ahmedabad–Dholera Expressway, the upcoming international airport, and large-scale industrial commitments estimated at Rs. 3.3 lakh crore, including Tata Group’s Rs. 91,000-crore semiconductor fab. Investor interest, particularly in plots, intensified, with participation from NRIs and buyers across North India. Reported land prices have increased nearly ten-fold over the past decade, reflecting long-term confidence in Dholera’s industrial-led urban future.

Chandigarh Tri-City: Premiumisation Takes Hold Parvinder Singh, CEO of Trident Realty, believes the real estate market is closing 2025 on a more confident footing. According to him, today’s buyers are more assured and specific about the homes they want, favouring well planned layouts and meaningful living spaces. He notes that while Chandigarh has remained stable and Mohali has picked up pace due to new commercial activity, buyer interest is increasingly shifting toward Panchkula. Its wider roads, quieter sectors and easier movement are drawing attention. Singh adds that this has led to a visible tilt toward premium, high-value homes, with developers aligning their launches accordingly. If the trend continues, he sees Panchkula playing a central role in strengthening the Tri-City’s premium housing market in 2026.

Lucknow and Tier II Cities: Writing Their Own Stories Lucknow exemplified the rise of Tier-II cities in 2025. Preksha Singh, CEO, Agrasheel Infratech, observed a 25 percent jump in residential sales, driven largely by end users and professionals returning for a better quality of life. This shift ensured a healthier, more balanced real estate cycle. Singh emphasised that Tier-II cities are no longer dependent on metro spillover but are shaping independent growth narratives through connectivity, stability, and lifestyle-driven demand.

Ahmedabad: Balanced Growth Across Segments According to Cushman & Wakefield’s Ahmedabad MarketBeat report, the city recorded approximately 20,700 residential launches in 2025, up 7 percent year-on-year. Peripheral submarkets led supply, while high end and luxury housing doubled their share to 22 percent. Affordable housing still accounted for 40 percent of launches. Office leasing touched 0.9 million square feet annually, driven by flex operators and IT-BPM demand, with rentals posting steady growth.

Indore: Infrastructure-Led Appreciation Indore continued to strengthen its position as a high-growth investment destination. As reported by Houssed.com, infrastructure projects such as a 22-acre stadium, startup park, convention centre, and ISBT modernisation boosted residential and commercial demand. Property prices appreciated 9–10 percent annually, with certain micro-markets seeing over 140 percent growth in three years. Smart City initiatives and strong rental yields reinforced Indore’s long-term appeal.

Hyderabad: Office Powerhouse with Residential Stability Hyderabad’s real estate market closed 2025 on a steady, confident note. According to Cushman & Wakefield’s MarketBeat report, the city saw nearly 10,000 new homes launched in the last quarter alone, with western pockets like Tellapur and Kokapet doing most of the heavy lifting. Mid-priced homes remained the clear favourite, though demand stayed strong even at the higher end. Over the year, more than 41,000 units entered the market, largely across western corridors. Prices and rents in prime neighbourhoods edged up, reflecting stable demand. On the office side, Hyderabad posted its strongest year yet, driven by IT, BFSI and global capability centres, alongside rising rentals and easing vacancies.

Chennai: End-User Strength and GCC Demand In Chennai, Cushman & Wakefield reported approximately 23,300 residential launches in 2025, driven largely by southern submarkets. Mid-segment housing dominated, while premium locations saw capital appreciation of up to 9 percent. Office leasing reached a record 7.02 million square feet in net absorption, with GCCs accounting for over 40 percent of annual demand, the highest ever for the city.

Kolkata: Quiet Momentum Returns Kolkata recorded around 12,525 residential launches in 2025, led by peripheral and North-East submarkets, according to Cushman & Wakefield. Mid-segment housing remained dominant, while premium launches gained traction. Office leasing touched its highest post-Covid level, driven by telecom, media, IT-BPM, and flex operators. With no new supply, vacancy declined and rentals appreciated across key corridors.

Looking Ahead

By the end of 2025, Indian real estate had clearly shifted gears. The year was not about exuberance but about alignment: between infrastructure and demand, capital and discipline, aspiration and affordability. As Ashwinder R Singh suggested, if guided by quality, clarity, and restraint, real estate is poised to remain a foundational pillar of India’s growth story as the country moves toward 2030.