Real Estate looks promising in 2025
A chance to move forward with even more growth
The real estate sector in the country is expected to grow even more, and it is anticipated that this sector will continue on a path of significant growth in the new year. Based on the growth seen in recent years, there is an expectation that developers will increase new supply in line with demand. It is also believed that the incentives provided for the real estate sector in the central budget will contribute to its growth. Additionally, it is being mentioned that real estate prices are likely to rise slightly in the new year.
In fact, after the COVID-19 pandemic, real estate sales in the major cities of the country decreased for the first time in 2024.
Increased prices and loan costs dampened buyers’ enthusiasm. In the seven major cities, sales volume in 2024 fell by 4%, reaching 459,650 units, while new supply dropped by 7%, reaching 412,520 units, says real estate consultant Anarock. After a 47% decline in 2020, home sales increased by 71%, 54%, and 31% in 2021, 2022, and 2023, respectively. In 2019, home sales were 261,355 units, but due to COVID-19, sales dropped to 138,350 units the following year. Sales then rose to 236,510 units in 2021, 364,880 units in 2022, and 476,525 units in 2023. If the real estate sector had continued on this path, sales would have risen in 2024 as well. However, factors such as high interest rates and price increases led to a 4% decline. In this context, experts suggest that for the real estate sector to regain
Dependent on the Budget
It is anticipated that the housing market will progress steadily in 2025. In 2024, home prices increased by an average of 21%. There is a possibility of further increase this year. However, the growth of the real estate sector will depend on what is provided in the upcoming Union Budget.
– Anuj Puri, Chairman, Anarock
Growth is Certain… But!
It is estimated that the real estate sector will achieve continuous growth in 2025. This momentum will depend on a stable economic environment and government incentives.
– G. Haribabu, National President, Naredco
Industry Status Should Be Granted
With the 2025 Budget approaching, there are optimistic expectations for reforms that could act as catalysts for the development of the real estate sector and enhance its operational efficiency. If the current tax exemption limit on home loans is revised to Rs 5 lakh, it will provide significant relief to home buyers, aligning with rising property prices and construction costs. Granting industry status to real estate would be transformative, with the potential to stimulate 200 related sectors.
The real estate industry is poised to play a defining role in India’s journey toward a developed Bharat by 2047. Strategic reforms such as adjustments to GST input tax credit rules could reduce developers’ tax burden, stabilise property prices, and make homes more accessible. Additionally, introducing a Rs 5 lakh subsidy for housing loans up to Rs 1 crore will provide crucial financial assistance to urban and semi-urban homebuyers.
– Pradeep Agarwal, Chairman, Signature Global (India) Limited
