Credit: GRI ClubGRI Residential India
Industry leaders share key insights on the evolving housing market
March 12, 2025Real Estate
Written by Isabella Toledo
India’s residential real estate market is undergoing a profound transformation, shaped by record-breaking luxury demand, evolving investor profiles, and emerging asset classes.
As high-net-worth individuals (HNWIs), non-resident Indians (NRIs), and family offices increasingly turn to premium properties for wealth preservation and growth, developers are recalibrating their strategies to navigate rising costs, shifting buyer expectations, and new investment models.
Leading this shift is the luxury and ultra-luxury segment, poised for a third consecutive record year, with over INR 5.1 trillion in projected sales across the top seven cities, led by Mumbai, Gurgaon, and Bangalore.
But beyond metros, tier 2 and 3 cities are emerging as new growth hubs, particularly for plotted developments, though navigating these markets requires careful attention to demand sustainability and regulatory challenges.
At the same time, alternative residential formats, such as co-living, senior housing, and branded residences, are gaining traction as shifting demographics and lifestyles redefine residential demand.
Yet, despite strong appetite, developers face rising land and construction costs and reduced access to traditional bank financing, turning instead to private equity, structured debt, and joint ventures to fund high-end projects.
Against this backdrop, protecting margins remains challenging, as developers face rising input costs and regulatory fees. Many are adopting phased launches, flexible pricing, and innovative construction technologies to preserve profitability, while brand-driven pricing power has become crucial in the luxury segment.
Discover all of the key insights from GRI Club’s annual GRI Residential India conference, where industry leaders explored the trends shaping the future of the country’s housing sector, in our exclusive new report.
Read the takeaways here.
India’s residential real estate market is undergoing a profound transformation, shaped by record-breaking luxury demand, evolving investor profiles, and emerging asset classes.
As high-net-worth individuals (HNWIs), non-resident Indians (NRIs), and family offices increasingly turn to premium properties for wealth preservation and growth, developers are recalibrating their strategies to navigate rising costs, shifting buyer expectations, and new investment models.
Leading this shift is the luxury and ultra-luxury segment, poised for a third consecutive record year, with over INR 5.1 trillion in projected sales across the top seven cities, led by Mumbai, Gurgaon, and Bangalore.
But beyond metros, tier 2 and 3 cities are emerging as new growth hubs, particularly for plotted developments, though navigating these markets requires careful attention to demand sustainability and regulatory challenges.
At the same time, alternative residential formats, such as co-living, senior housing, and branded residences, are gaining traction as shifting demographics and lifestyles redefine residential demand.
Yet, despite strong appetite, developers face rising land and construction costs and reduced access to traditional bank financing, turning instead to private equity, structured debt, and joint ventures to fund high-end projects.
Against this backdrop, protecting margins remains challenging, as developers face rising input costs and regulatory fees. Many are adopting phased launches, flexible pricing, and innovative construction technologies to preserve profitability, while brand-driven pricing power has become crucial in the luxury segment.
Discover all of the key insights from GRI Club’s annual GRI Residential India conference, where industry leaders explored the trends shaping the future of the country’s housing sector, in our exclusive new report.
Read the takeaways here.
