Real estate sector is the second largest employer in India, after agriculture, employing 18% of the country’s workforce- A Dynamic Leap Towards 2025

India’s real estate sector is evolving rapidly, poised to cement its position as a trillion-dollar market by 2030. Riding on the wave of robust government policies, market innovations, and sustainability-driven trends, the sector has transformed into a key pillar of the nation’s economic framework. The past few years have witnessed remarkable strides in residential, commercial, and infrastructural development, setting the stage for a landmark 2025. The real estate sector is the second largest employer in India, after agriculture, employing 18% of the country’s workforce. contribution to India’s GDP is expected to increase from 7.3% to 13% by 2025 and 15.5% by 2047.

“The past year has been pivotal for real estate,” says Vivek Sinha, Director of Sales and Marketing, KDMG Group. “Advancements in technology, sustainability, and housing affordability have redefined the sector, while hybrid work models are revolutionizing commercial spaces. Programs like Pradhan Mantri Awas Yojana (PMAY) have democratized housing, making it accessible to a broader demographic.”

Urban Giants and Emerging Hotspots

Urban centres such as Mumbai, Pune, Hyderabad, Delhi NCR—including Noida, Gurugram, Ghaziabad, and Faridabad—continue to lead real estate demand. These cities blend economic vibrancy with infrastructural growth, making them prime zones for both residential and commercial development. Emerging areas like Manesar, currently under discussion to be declared a district, and regions like New Gurugram and Dwarka Expressway, are rapidly transforming into real estate hotspots.

“Urban infrastructure improvements in these regions have significantly enhanced connectivity, making them magnets for investment,” highlights Vikas Aggarwal, COO of Worldwide Realty. “The real estate values here are set to rise sharply as these areas integrate into the broader metropolitan framework.”

Technology and Sustainability -The Twin Drivers

The real estate sector is increasingly embracing smart technologies and sustainable practices. Smart homes with AI-driven features and eco-conscious construction are becoming industry benchmarks. Simultaneously, the rise of co-working spaces and flexible office models reflects the sector’s adaptability to evolving work trends.

“The future of real estate lies in blending sustainability with technology,” adds Aggarwal. “This dual focus ensures resilience and aligns the sector with global standards while meeting domestic demands.”

The Rise of Tier 2 and 3 Cities

As urbanization accelerates, Tier 2 and 3 cities are emerging as the next growth hubs for real estate. Government initiatives like the Smart Cities Mission, AMRUT, and PMAY have funneled investments into infrastructure, including roads, public transport, and regional airports. These enhancements improve connectivity, making these cities more accessible and appealing to residents and investors alike.

“Urban infrastructure is a key trend driving real estate in Tier 2 and 3 cities,” notes Mohit Mittal, CEO of MORES. “These regions offer relatively affordable property prices, ongoing value appreciation, and long-term capital gains, making them lucrative for both homebuyers and investors.”

A recent report by PropEquity revealed an 11% rise in housing sales across the top 30 Tier 2 cities, with nearly 2.08 lakh units sold in FY 2023-24. Consumer preferences are also shifting towards luxury living, with premium amenities increasingly in demand.

A Landmark 2025

Looking ahead, India’s real estate sector is set to focus on enhancing urban infrastructure, leveraging digital innovations, and scaling sustainable practices. With urbanization expected to reach 50% by 2050, Tier 2 and 3 cities will become the focal point of growth. The sector’s GDP contribution, projected to rise from 7.3% to 13% by 2025, underscores its critical role in India’s economic trajectory.

As India’s skylines transform, so does its real estate narrative—one of resilience, adaptability, and promise. The coming years herald an exciting era for the sector, ensuring it remains the

cornerstone of the nation’s progress.

 

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