India’s real estate market has entered one of its most confident phases in over a decade, with steady sales, firm prices, and renewed investor interest. Urban professionals, in particular, are once again viewing property as a reliable avenue for building and preserving wealth. At the same time, investing in real estate is no longer confined to buying an entire home. Technology-led platforms have made the market more accessible, allowing investors to purchase small stakes in high-value residential or commercial assets and share in rental income and capital appreciation through fractional ownership. These models are increasingly appealing to younger professionals seeking property exposure with lower entry costs and greater liquidity.
A shift in mindset
For Indian households, real estate has always been more than an asset; it represents permanence and social security. Yet between 2013 and 2020, sentiment cooled. Over-supply, delayed projects, and policy changes such as RERA and the Goods and Services Tax slowed activity and forced a shake-out.
The mood began to change after the pandemic. As families spent more time at home and saw financial markets swing wildly, the comfort of a tangible asset once again became appealing. With incomes rising and savings intact, many professionals began viewing property as a hedge rather than a burden.
Developers note that the tone of buyers has changed, too. They come prepared with research, compare locations, and focus on delivery track records. Instead of speculative flipping, the emphasis is on reliability and long-term use, whether for living, renting, or simply holding as part of a portfolio.
The evidence on the ground
Market data from multiple research firms points to a sector in transition rather than a bubble.
Sales remain high. The India Brand Equity Foundation estimates that the top seven cities recorded around 4.59 lakh housing sales in 2024, only slightly below the 4.76 lakh of 2023.
Prices are firming. Analysts expect home prices in major metropolitan areas to rise by about 6.3 per cent in 2025 and another 7 per cent in 2026.
Premium homes dominate. Knight Frank found that by Q3 2025, units priced below ₹1 crore accounted for 48 per cent of sales, down from 54 per cent a year earlier, while the ₹1–2 crore range increased to 28 per cent.
Higher-value properties gaining share. JLL India’s mid-year report shows that homes above ₹1 crore account for 62 per cent of total sales, up from 51 per cent a year earlier.
Affordability pressures are visible. It is noted that in Q2 2025, overall sales declined by approximately 20% year-over-year across the top metros, despite the quarterly trend remaining positive.
These numbers reflect a more balanced market, one where buyers prioritise asset quality and longevity over short-term price appreciation.
What’s driving the resurgence
1. Inflation hedge and tangible comfort
As global inflation persists, tangible assets have regained appeal. Real estate naturally fits into that role: it can appreciate gradually, generate income, and offer a psychological sense of control.
2. Tighter supply and greater discipline
Developers are no longer racing to build. After the consolidation of the past decade, only those with sound balance sheets and reputations are expanding. Grant Thornton’s data show unsold inventory down 19 per cent in Q1 2025 versus the previous year, a sign of restraint. Fewer launches have helped prices stabilise and improved trust between builders and buyers.
3. A changing buyer base
The typical buyer today is a mid-career professional or an NRI who sees property as a balanced asset, not a gamble. They value transparency, location, and rental potential.
The premiumisation trend
One of the biggest structural shifts is the migration toward premium and luxury homes. In 2025, the share of properties above ₹1 crore in total sales rose by more than ten percentage points.
This could reflect two realities. First, urban incomes have grown quickly in the technology, financial, and professional services sectors. Second, post-pandemic priorities have shifted; buyers now seek more space, amenities, and community infrastructure. Developers have responded with larger units, mixed-use townships, and branded residences.
The mid-segment, homes between ₹50 lakh and ₹1 crore, remains the workhorse of the industry. It accounts for roughly one-third of demand and continues to attract both first-time homeowners and investors looking for rental yield.
Comparing property and equities
Indian investors traditionally juggle other major asset classes. The current environment is subtly changing how they stack up.
Equities have delivered strong multi-year returns, but volatility remains a deterrent. Real estate, while slower-moving, combines capital appreciation with rental yield and the advantage of leverage through home loans.
Analysts have calculated gold’s 15-year compounded annual growth at around 11.3-14 per cent and real estate’s at around 5.2-6.4 per cent. When rental income and moderate leverage are factored in, the property’s total return narrows the gap considerably. For long-horizon investors, that combination of tangible security and yield could be proving persuasive again.
The risks that remain
No asset class is without pitfalls, and property brings its own.
Affordability and interest-rate pressure. Rising ticket sizes and higher loan rates have stretched monthly budgets. A softening in borrowing costs could be crucial for sustaining sales momentum.
Liquidity concerns. Real estate transactions still take time to complete, whether buying or selling. Exit strategies require planning, and investors should expect to hold their investments for an extended period.
Segment imbalance. Premium housing is thriving, but affordable housing remains under stress.
Execution risk. Despite RERA improving accountability, project delays and title disputes still occur. Diligence on developers and legal clearances remains essential.
Note to the Reader: This article has been produced on behalf of the brand by HT Brand Studio and does not have journalistic/editorial involvement of Hindustan Times. The content is for information and awareness purposes and does not constitute any financial advice