Infrastructure push, premiumisation shape India’s real estate story in 2025

Infrastructure push and premiumisation shape India’s real estate story in 2025

India’s real estate sector ended 2025 on a steady footing, with housing demand holding up across most major markets despite global uncertainty.

Market observers said that prices firmed up in well-connected locations, buyer confidence improved, and growth expanded beyond large metros into emerging corridors and regional cities—marking a clear shift towards value-led and infrastructure-driven development.

Manoj Gaur, CMD, Gaurs Group, said that throughout 2025, housing prices witnessed a steady rise in most active markets, including emerging towns and peripheral urban pockets. He said that urbanisation is no longer metro-centric and is moving into high-potential micro-markets.

Infrastructure drives decentralised growth

Infrastructure continued to be a key demand driver during the year. Growth corridors, such as the Yamuna Expressway region, Navi Mumbai region and Dwarka Expressway, gained prominence, supported by expressways, metro expansion and the upcoming airports.

“With the Noida International Airport acting as a catalyst, the Yamuna Expressway region has emerged as a strong magnet for residential demand, commercial activity and GCCs (Global Capability Centres) ,” Gaur said, adding that pricing is likely to remain firm in strong micro-markets going into 2026.

Developers said improved connectivity across NCR translated into higher buyer confidence, especially in premium and luxury housing.

“2025 has been a very strong year for Indian real estate, with clear improvement in demand across key markets,” said Amit Modi, Director, County Group.

Premiumisation defined housing demand

Premiumisation emerged as one of the most visible trends of 2025, with buyers prioritising quality, location and lifestyle over sheer size. Luxury and premium housing outperformed mass housing in several cities, pushing up average ticket sizes even as overall volumes moderated.

Ashwinder R Singh, Chair, CII Real Estate, said that 2025 was less about cycles and more about structural change—from volume to value and metro-led growth to regional diversification. He said that premium housing reshaped both demand and supply.

Modi of County Group said that he expects premium and luxury segments to continue leading the market. “In 2026, we expect price appreciation of around 10–12 percent in premium housing,” he said.

Jason Samuel, Managing Director, House of Swamiraj, a Thane-based realty firm, said that homebuyers today are more conscious about where and how they live. “The premium and upper mid housing segments continued to perform strongly while the entry-level category faced pressure, indicating that buyers now prioritise long-term comfort, thoughtful design, technology and lifestyle rather than simply additional square footage,” he said.

Currency volatility altered investor behaviour

The rupee’s sharp depreciation during 2025 also influenced real estate investment decisions, particularly among high-net-worth individuals.

Ritu Kant Ojha, CEO, Proact Luxury Real Estate, said that the rupee breaching the 90 mark against the dollar forced investors to reassess domestic real estate exposure.

“While luxury home prices in Mumbai and NCR surged around 35 percent this year, rental yields have compressed to a negligible 2 percent. Investors realised they are holding expensive assets that are effectively bleeding value in dollar terms. This pushed many investors to look at overseas markets like Dubai for currency stability and better returns,” he said.

He explained that Rs 5 crore could buy a low-yield apartment in Bandra, while the same capital secures a prime Downtown Dubai asset generating 8 percent net in a dollar-pegged currency.

Beyond housing: new asset classes gain traction

Beyond residential real estate, 2025 saw growing interest in warehousing, data centres, senior housing and integrated townships, supported by manufacturing growth, logistics expansion and infrastructure spending.

“Warehousing and industrial real estate are likely to remain the strongest growth engines. The office sector is expected to stay selective, with occupiers favouring high-quality Grade A assets,” Singh, who is also vice chairman of BCD Group, said.

Outlook for 2026

As the sector heads into 2026, developers expect consolidation rather than rapid expansion. With potential easing in interest rates and continued infrastructure push, demand is likely to remain resilient, especially in premium segments and emerging growth corridors.

Yukti Nagpal, Director, Gulshan Group, said that bolstered by a resilient economy, attractive interest rates, and transformative infrastructure growth, the real estate sector is poised for remarkable expansion.

“The demand for refined living spaces will continue to rise, perfectly aligning with the evolving aspirations of discerning buyers. Noida stands at the forefront of this momentum, ready to set new benchmarks in luxury living and investment value in the coming year," she said.

Ankush Kaul, President, Sales, Marketing & CRM, Central Park, said that in 2026, luxury housing will be increasingly shaped by fundamentals such as quality of planning, environmental performance and hospitality-oriented, service-led living, all of which play a decisive role in long-term liveability and asset value.

“The sector is seeing a clear shift towards well-conceived, exclusive communities where strong design, open spaces and a serviced-residence mindset come together to elevate everyday living,” he said.