By Ashwani Kumar, Pyramid Infratech
The Indian real estate market, after witnessing massive growth in 2024 marked by a 21% rise in residential prices across major cities, has entered a consolidation phase. With 2025 almost halfway through, the real estate prices have almost stabilised, and reputed developers are regularly launching new project launches, both residential and commercial. Not just India’s tier 1 cities but tier 2 and 3 towns are in the throes of the realty renaissance. As the country is growing fast and its economy has picked pace the growth potential of the sector is humongous. With massive all-round infrastructural development added to this equation, it is the opportune time to invest in real estate. For smart investors, this phase offers something more valuable than momentum: clarity.
The broader outlook for real estate in India remains strong. The sector’s contribution to the country’s GDP is expected to climb from 7% in 2024 to around 13% this year. Long-term projections suggest the market could touch $1 trillion by 2030.
But here’s what’s changed—2025 isn’t about rapid spikes. Price growth is now more balanced. That’s good news for serious investors. With less speculation and more focus on fundamentals, locations that offer sound infrastructure, planned growth, and real demand—like Gurugram, Bengaluru, Mumbai, and emerging pockets such as New Noida and Dwarka Expressway—stand out.
The appetite for luxury homes continues to rise, particularly among well-travelled Indian buyers and NRIs. Gurugram’s premium corridors, such as Golf Course Extension Road and SPR, have seen significant capital appreciation—some micro-markets even touched 40% year-on-year. But there’s a twist. With more projects launching, there’s now a wider choice for buyers. This increased supply has brought a much-needed balance in pricing.
Amid global uncertainties, India’s commercial real estate sector has remained resilient. It’s thriving. Last year saw institutional investments crossing $7 billion, and premium office spaces in Delhi-NCR now offer rental yields of up to 10%.
Gurugram and Noida, thanks to infrastructure projects like the Dwarka Expressway and the new airport in Jewar, are emerging as commercial hotspots. Announcement of the opening of new regions, such as New Noida and mega-townships along the Yamuna Expressway has further added to the vigour. Retail, too, is rebounding fast. Malls are seeing strong footfall and occupancy, and global brands are steadily expanding. For investors, the message is clear: this is a space worth considering—not just for capital appreciation but for recurring income as well.
Gurugram: Still a Favorite, and for Good Reason
However, when it comes to consistency, Gurugram has few rivals. Its connectivity—through IGI Airport, NH-48, and now the Dwarka Expressway—makes it a magnet for both end-users and investors. Over the past year, sales of luxury homes in the city have grown, backed by strong developer activity and continued interest from high-net-worth buyers. More importantly, its micro-markets—especially Golf Course Extension Road, SPR, and New Gurugram—have shown steady price appreciation and rental demand. For anyone looking at long-term value, Gurugram offers a rare combination of infrastructure, demand, and investor confidence.
Making the Right Moves in 2025
If you’re planning to invest this year, a few principles can help steer your decisions. First and foremost is the choice of location. New growth corridors like Yamuna Expressway and Dwarka Expressway are still priced attractively, with strong future upside. Moreover, it is also essential to look into the developer’s record, check the RERA status, and review the area’s upcoming infrastructure plans. Further, if your budget allows, consider spreading your investment across residential, commercial, and retail segments. And most importantly, invest keeping in consideration medium and long-term growth. The rest of 2025 is likely to reward those who think long-term. As prices stabilise and infrastructure improves, the window for making well-judged property investments is very much open.