Real Estate

India’s housing market in 2025 is undergoing a structural shift marked by declining transaction volumes but rising overall value. While the number of residential units sold has moderated across key urban centers, higher property prices, premiumisation and steady end-user demand have pushed total market value upward. Developers are focusing on quality, scale and financial discipline, while buyers are showing a preference for larger homes and established locations.

The Ambuja Neotia Group has moved to revive the long-stalled Usshar real estate project in Kolkata, signaling renewed confidence in the city’s residential property market. The decision reflects improving demand conditions, regulatory clarity and a sharper focus on completing legacy developments. Industry observers view the revival as a positive inflection point for eastern India’s real estate landscape, where delayed projects have historically weighed on buyer sentiment.

Private equity investments in India’s real estate sector have registered a sharp contraction, reflecting growing caution among global and domestic investors. According to recent industry estimates, capital inflows declined 29 percent year-on-year to $3.46 billion, underscoring the impact of higher interest rates, geopolitical uncertainty and selective risk appetite. While residential and warehousing assets continued to attract interest, commercial real estate faced funding headwinds.

India’s industrial and logistics real estate market has reached a record level of demand, reflecting structural shifts in manufacturing, supply chains and consumption. Strong growth in e-commerce, third-party logistics and domestic manufacturing has driven unprecedented absorption across key markets. Policy support, infrastructure investment and the push for supply-chain resilience are further strengthening the sector’s outlook. For developers and investors, the surge underscores the transition of industrial and logistics assets from niche holdings to a core real estate segment.

Prestige Estates Projects Ltd. has acquired a land parcel in Chennai to develop a new residential project, reinforcing its expansion strategy in one of South India’s most stable housing markets. The move reflects growing confidence in sustained homebuyer demand, supported by infrastructure development and steady employment growth. Chennai continues to attract developers seeking long-term residential opportunities due to its balanced mix of end-user demand and regulatory stability.

Real estate developer Puravankara Ltd. has acquired a land parcel in Bengaluru to develop a new housing project, reinforcing its focus on India’s high-demand residential markets. The acquisition aligns with the company’s strategy of strengthening its presence in key urban centers amid sustained homebuyer interest and improving affordability. Bengaluru remains a priority market, driven by strong employment growth and infrastructure development. The proposed project is expected to cater to end-user demand across targeted segments.

Brookfield India Real Estate Trust has raised Rs 2,000 crore through a bond issuance, strengthening its capital structure and reinforcing investor confidence in India’s commercial real estate market. The fundraising highlights sustained appetite for high-quality office assets backed by stable cash flows, even amid evolving interest rate dynamics. The proceeds are expected to be used for refinancing, asset enhancement, and supporting long-term growth objectives.

A subsidiary of Paytm has sold its equity stake to an investment firm associated with the founder of global real estate major Emaar, marking a notable transaction in India’s fintech and investment landscape. The deal reflects Paytm’s ongoing efforts to streamline its portfolio, unlock value, and sharpen focus on core digital payments and financial services businesses. Market participants view the divestment as a strategic capital reallocation rather than a retreat, highlighting continued interest from global investors in Indian digital assets.

State Bank of India is approaching a major milestone in retail banking, with its home loan portfolio expected to surpass Rs. 10 lakh crore in the next financial year. The projected growth reflects sustained demand for residential housing, improving affordability and the bank’s continued focus on secured retail credit. As the country’s largest lender, SBI has leveraged its scale, competitive pricing and digital capabilities to strengthen its leadership in the housing finance segment.

LIC Housing Finance has announced a reduction in its home loan interest rates, bringing the starting rate down to 7.15%, a move expected to provide meaningful relief to homebuyers and stimulate housing demand. The rate cut comes amid easing inflationary pressures and a more accommodative interest rate environment. Industry experts view the decision as a strategic step to remain competitive in a crowded mortgage market while supporting residential real estate growth.