By – Dr. Gautam Kanodia, Founder of KREEVA and Kanodia Group
India’s real estate sector has witnessed remarkable growth over the past decade, evolving into one of the most dynamic components of the country’s economy. Driven by rapid urbanization, increasing household incomes, and supportive government policies, the housing market has expanded significantly, attracting both domestic and foreign investors. Cities like Mumbai, Delhi-NCR, Bengaluru, Pune, and Hyderabad have emerged as real estate powerhouses, while Tier 2 and Tier 3 cities are also experiencing a surge in demand.
However, a question looms: Is India’s real estate market overheating or does it still offer a safe investment opportunity? In recent years, the sector has seen soaring property prices, high demand in premium segments, and tightening monetary policies—factors that could indicate speculative overheating. Yet, robust infrastructure development, ongoing urban expansion, and long-term housing demand suggest that the market remains strong.
According to a report by PropEquity, Delhi-NCR has pipped Mumbai and Hyderabad to emerge as the top-selling housing market in 2024, owing to 66% growth in sales value in Gurugram alone. With this, Delhi-NCR has breached the Rs 1 lakh crore sales value threshold. The report further stated that the total sales value of Delhi-NCR rose by 63% in 2024 to Rs 1.53 lakh crore. The data reflects that major metros continue to dominate real estate activity.
However, despite this demand, the supply side tells a different story.
As per the Anarock report, the Delhi-NCR housing market witnessed a 53% growth in new supply in Q1 2025 with 11,120 units launched in Q1 2025, compared to 7,270 units in Q1 2024, with a notable 70% of the supply in the ultra-luxury segment (priced above Rs 2.5 crore). While new project launches have picked up pace in several cities, unsold inventory remains a concern in select markets, particularly in the luxury and high-end segments. The report displayed that unsold inventory dropped by 4% annually – from approx. 5,80,890 units by Q1 2024-end to approx. 5,59,810 units by Q1 2025-end. Balancing this demand-supply equation will be key in determining whether the market remains stable or leans toward overheating.
Further, the region’s micro-markets offer attractive investment opportunities. In Gurugram, micro-markets like Dwarka Expressway, Golf Course Extension Road, and New Gurgaon have become high-potential zones driven by enhanced connectivity, world-class infrastructure, and rising property values. With increasing commercial development, improved social infrastructure, and better connectivity, these emerging pockets in NCR are shaping up to be the next big investment frontiers.
Therefore, India’s real estate market stands at a critical juncture, with signs of strong growth in key cities and emerging corridors, yet concerns about overheating in certain segments. While rising property prices and interest rates may pose short-term risks, long-term fundamentals remain strong, backed by urbanization, infrastructure development, and growing housing demand. As India’s economy continues to expand, real estate remains a strong asset class, but careful market research and strategic investment choices will be key to maximizing returns.
