Real Rich
As 2024 draws to a close, the Smart Buyer and the Wise Investor looks to the rapid and imminent arrival of 2025. With the new year, there will come a new set of trends and challenges in the Indian real estate market. In this article, we aim to give you – the Smart Buyer or Wise Investor – and insight into what will affect our ever-growing and beloved market.
To understand where and how to invest in the real estate market in the coming year, it is important to understand how the market may shift and change. To this end, we have compiled a list of the most important markers to look out for and the trends that the market is likely to take on.
1 – The National GDP
The real estate market is projected to constitute 13% of the Indian GDP in 2025, holding a market value of over 500 billion USD. With real estate developers believed to complete building nearly a million homes and office spaces in 2024, this is little wonder. Given this upward trajectory, an investment in Real Estate is not only wise but necessary!
2 – The Growing Infrastructure
The rising market value of the real estate sector does not exist in a vacuum. Without growing infrastructure, this rise would be difficult. Cities like Pune and Bengaluru are constructing hundreds of kilometres of metro lines and the Indian Railways look set to introduce true high-speed rail connecting Indian metropolises. This new wave of modern infrastructure is driving a wave of real estate to be built in anticipation.
3 – The Growing Commercial Real Estate Market
Across the country, commercial real estate is booming – with new projects being announced or completed everyday. In Pune alone, this sector is predicted to increase by 40% (in total value of leases and area of square footage) in 2025.
4 – The General Increase of Investments
In 2023, the total investment by private individuals/groups into real estate in India was 4.2 billion USD. In the first half of 2024 alone, this investment was 3 billion and by the end of 2024, it will have crossed 8. By 2025, private actors are predicted to invest at least double that number.
5 – Increase in Sales
Home sales across India are on the rise. In 2022 alone, sales of homes increased by 68% across the top 8 Indian cities. In 2023, they increased by 75%. While the data for 2024 and the predictions for 2025 are not yet available, there is no reason to believe there will be a decrease in sales.
Final Thoughts for the Wise Investor
The real estate market in India in 2025 is inevitably going to be a growth market. For the Wise Investor, the figures outlined above should be an indicator of just how much wealth there is to be made in this market. Listening to the market is the best way to create sustainable wealth through investing in real estate and make your life Real Rich.
