Summary of this article
Homebuyers now prefer larger homes which include personalized amenities because they have more money to spend and want to achieve their dream lifestyle.
India’s office market continues to be on an upward growth trajectory.
Improved connectivity and the growing spread of economic activity across cities are encouraging real estate developers to adopt a multi-city model.
India’s real estate sector is witnessing a structural growth pattern due to various factors such as infrastructure development, strengthened investment sentiments, and evolving demand patterns. Unlike in the past, when the Indian real estate sector experienced cycles driven by speculative activity and short-term demand surges in certain markets, the current market cycle is being driven by underlying and long-term economic and demographic changes.
Homebuyers now prefer larger homes, which include personalised amenities, because they have more money to spend and they want to achieve their dream lifestyle. As per a report by Sotheby’s International Realty in collaboration with CRE Matrix, Gurugram has emerged as the fastest-growing high-end luxury housing market, registering Rs 24,120 crore transactions in 2025, outpacing Mumbai. The report highlighted 1,494 homes priced at Rs 10 crore and above sold during the year, the highest ever recorded in any 12 months in the city.
On the other hand, India’s office market continues to be on an upward growth trajectory. The office space market is being largely driven by the expansion of Global Capability Centres (GCCs), technology firms and multinational companies. As per JLL, 2025 established yet another new record with 83.3 million sq. ft of gross leasing volumes for the full year. Global firms in particular held a significant 58.4 per cent share, cementing India’s positioning as a strategic business hub.
Sandeep Chhillar, Founder & Chairman, Landmark Group, says, “India’s real estate market is undoubtedly moving into a new phase, wherein all forms of asset classes are growing simultaneously. In cities such as Gurugram, there is a strong demand for both luxury housing and Grade A office spaces, driven by multinational occupiers and GCCs. What is interesting is how both of these segments are increasingly complementing each other, with office professionals also looking for residential communities around premium office locations. For developers, this means the opportunity is no longer limited to building standalone assets but shaping holistic environments where living, working, and lifestyle experiences evolve together.”
As the focus shifts from rural areas to infrastructure development, the way urbanisation is taking place is also changing, with the emphasis now being on the development of integrated townships around new areas witnessing infrastructure growth, rather than around the existing urban centres. Moreover, the growth momentum is gradually extending beyond the country’s largest metropolitan centres. Some Tier-II cities, such as Panipat, Lucknow, Indore, and Coimbatore, are seeing an increase in housing demand.
Gurpal Singh Chawla, Managing Director, TREVOC Group, says, “Tier 2 cities are set for a major leap with the Delhi–Panipat RRTS reducing commute times drastically. As infrastructure improves and economic activity spreads beyond traditional metros, these emerging urban markets are gradually attracting a new generation of buyers who want premium living experiences closer to their home regions.”
According to a Colliers report for Q4 2025, tier-2 cities have seen cumulative year-on-year absorption growth of nearly 20 per cent. Developers observe that these markets are increasingly being viewed as long-term expansion opportunities rather than peripheral plays.
Viren Mehta, Founder & Director, ElitePro, says, “India’s real estate market is entering a truly multi-dimensional growth phase. We are no longer seeing isolated pockets of activity; residential, commercial, retail, and logistics assets are all expanding in parallel, backed by infrastructure, capital inflows, and shifting buyer preferences. What’s particularly interesting is how Tier-II cities are now coming into the picture, with improved connectivity and economic activity creating entirely new demand corridors. It is no longer about short-term momentum for developers and investors; it is about strategically planning developments that accommodate changing lifestyles, creating long-term and sustainable value in all asset classes.”
Infrastructure development has emerged as the strongest multiplier shaping the sector’s growth. The rapid expansion of expressways, metro networks, logistics corridors and airport infrastructure is opening up new micro-markets along key transit routes. As government data states, the country’s network of national highways now stretches beyond 1.46 lakh km, with the extent of four-lane highways increasing more than two-fold over the last decade. Even high-speed corridors have increased manifold, rising from 93 km in 2014 to over 2,100 km now.
In Gurugram, the Dwarka Expressway corridor recorded a 2,079 per cent hike in transaction value, rising from Rs 383 crore in 2024 to Rs 8,347 crore in 2025, while the Golf Course Extension Road witnessed a 379 per cent rise in transaction value, with weighted average prices rising from Rs 24,855 per sq ft to Rs 37,899 per sq ft. Developers say the focus is gradually shifting from volume-led supply to more design-driven, low-density developments that emphasise privacy and lifestyle experiences.
Rakesh Kaul, MD and CEO, Ralith Realty, says, “Gurugram’s luxury housing market has matured into one of the most sophisticated residential ecosystems in India, supported by strong infrastructure, global corporate presence, and a discerning buyer base. However, the next phase of growth will also come from emerging cities that are benefiting from improved connectivity and economic diversification. Panipat, for instance, is beginning to witness a shift in buyer expectations as professionals and entrepreneurs look for better-quality residential environments within the city. For developers, this paves the way to introduce organised, well-planned housing formats that align with the aspirations of the evolving urban population.”
Collectively, this is evolving the Indian real estate market into a more diversified and multi-asset investment model. Further, improved connectivity and the growing spread of economic activity across cities are encouraging real estate developers to adopt a multi-city model. This is slowly transforming the Indian real estate market into a sustainable model, supported by a variety of asset classes, including residential, office, retail, and logistics real estate.
