Despite rising property prices and a post-pandemic market correction, sub-₹1 crore homes continue to dominate India’s residential real estate market, accounting for 51% of total sales, according to Ashish Khandelia, Founder of Certus Capital.
In an interview with ETMarkets, Khandelia noted that affordable housing remains a critical segment, driven by strong demand, government incentives, and improved loan eligibility.
While premium housing has seen notable growth, the sub-₹1 crore segment continues to be the backbone of the market, reflecting both enduring affordability and evolving buyer preferences across India’s top cities. Edited Excerpts –
Q) Thanks for taking the time out. CREDAI Natcon 2025 report highlighted that India’s real estate market to touch $5-10 trn by 2047. What are your views?
A) India’s real estate has advanced from a largely unregulated, localized industry to a far more institutionalized market.
The Indian real estate sector has witnessed remarkable growth over the past few decades, driven by urbanization, increasing disposable incomes, demographic changes, govt reforms/initiatives, infra growth and institutional participation.
Real estate sector in India is expected to reach USD 1 trillion in market size by 2030, up from ~USD 200 billion in 2021.
Currently real estate sector contributes ~7-9% to India’s GDP, with projections to reach ~13% by 2030 and ~15% by 2047 in line with some of the mature economies.
As per Niti Ayog, India’s GDP is expected to reach USD 30 trn which could mean India’s real estate sector could potentially reach ~USD 5 trn. It is important to note that within real estate sector, residential is the most dominant sector with strong underlying fundamentals.
Q) Indian REITs offer distribution yields of 6-7%, higher than the US or Singapore. What makes Indian REITs attractive for both domestic and global investors?
A) India’s office market has bucked the global trends of workspace contraction and is a shining beacon on the international office market stage even in the face of global uncertainties and headwinds.
Indian office market posted record highs in the 1HCY25 in terms of absorption levels. Strong India’s office market fundamentals (strong, educated and young workforce, rent arbitrage compared to global peers, sustained economic growth, rising institutional investment, and strong resilience in global office demand) augers well.
GCCs continue to dominate office demand over the last few years underscoring India’s well-established position as a leading global talent hub which was unfazed in the wake of global headwinds.
India’s REIT market has grown steadily since its first listing in 2019, reaching about USD 18 billion in value in August. With three more REITs expected over the next four years, the market could go beyond USD 25 billion.
Indian REITs make an increasingly compelling choice for both domestic and international investors to participate in the Indian office story. Investors favor REITs for their liquidity, transparency, regular income and access to high-grade commercial assets without direct property management.
However, it is important to note that despite the recent surge in the unit prices for listed office REITs, the total pre-tax return (on an annualised basis) is around 10-14% up from 5-10% 12-18months ago.
Q) Do you see a shift in preference toward structured debt, fractional ownership, or REITs among wealthy and institutional investors?
A) Yes, rising domestic wealth is seeking high-return investments with HNI/UHNI increasing their participation in Indian alternative investments.
Alternative industry & private credit market is expected to reach ~USD 238 Bn and ~USD 58 Bn by 2028 resp with CAGR (2024-28f) of ~13-15% and ~23% resp.
There is a noticeable shift among wealthy and institutional investors in India toward structured debt, fractional ownership models, and REITs.
• With growing high net worth population and increasing awareness and understanding of alt. investments, Investors are looking beyond traditional asset classes as investment option for higher yields and low fluctuation.
• Driven by tightening of lending norms of traditional lenders, there is a need for more flexible, tailored financing solutions and demand for private credit solutions. From investors point of view, such structured debt products are appealing because they offer fixed yields and lower risk profiles in a volatile interest rate environment.
• Fractional ownership platforms are gaining traction, allowing groups of investors to co-own Grade A real estate and diversify portfolios without massive capital outlays.
• Growing comfort with tech-enabled platforms, stronger regulatory oversight, and demonstrated performance of listed REITs accelerate this trend.
Overall, the evolution toward REITs, structured debt, and fractional ownership represents a maturing and more diversified investment landscape in Indian real estate.
Still there is significant growth potential ahead- private credit AUM in developed markets ranges from 4-4.5% of GDP compared to 0.5% of GDP in India.
Q) With housing demand resilient post-COVID and interest rates easing, how do you see residential sales trending over the next 12-18 months?
A) In the past few months, residential market has witnessed a correction in sales after an extended runup post-COVID. Real estate cycle has entered stabilisation phase.
This dip was mainly on account of the market taking a breather post this extended runup. Increase in sales price and has resulted in increasing consumer decision time as well.
Developers have also adopted a more cautious approach, emphasizing on project completions and selectively launching projects.
Despite the moderation in sales and the overall macroeconomic headwinds, the overall market remains substantially higher than pre-pandemic levels with sales and launches in 1HCY25 already reaching c.73% and c.84% of CY19 levels resp.
Even with reduction in sales volume, total sales value has steadily grown to INR 1.47 lakh Cr in 1HCY25, amidst rising property prices and a shift towards larger homes.
Strong underlying fundamentals, recent govt/RBI initiatives (repo rate cuts, GST rates) and relatively healthy developer balance sheet suggests stabilization and resilience rather than prolonged weakness in India’s residential real estate market.
Q) How affordable is affordable housing now? How much one need to buy a house in Tier 1 and Tier II cities?
A) Residential housing prices have been consistently rising over the past few years, driven by high land costs and growing demand for larger, premium homes.
Rising construction expenses and inflation have further pushed prices upward, limiting homeownership for many lower- and middle-income families.
Nevertheless, the sub-INR 1 crore segment remains sizeable, accounting for 51% of sales and about 64% of unsold inventory in 1H CY25.
Price Trends:
• Residential prices across top 7 cities have increased at a CAGR of 18.2% over CY22-24, however, price growth over the last 5 years (CY19-24) is moderate at c.9%.
• In the last 5 years (CY19-24), Hyderabad, Bangalore and NCR have seen the highest average price increase between 10.5 – 11.7%, while other cities maintained a moderate 5.8 – 9.4% increase.
• While in recent years (CY22-24), Mumbai, Bangalore, NCR and Hyderabad saw a high avg. price psf growth rate between 18-26%, while the other three cities, Pune, Chennai and Kolkata had a relatively modest growth of between 11-13.5%.
• With improved affordability, driven by lower interest rates, higher loan eligibility and benefits of GST cuts passed on to the buyer, demand across segments, especially in the units priced below INR 1 Cr, is expected to boost.
Q) Global Capability Centers (GCCs) continue to expand in India. How critical is this trend for office market demand?
A) The expansion of Global Capability Centers (GCCs) in India is highly critical for office market demand, serving as a major growth engine in the commercial real estate sector. India currently hosts nearly 1,950 GCCs employing around 1.9 million people.
Major tier I cities such as Bengaluru, Hyderabad, Chennai, Delhi NCR, Mumbai, and Pune house 94% of India’s GCCs, thanks to their strong talent base, progressive policies, and robust infrastructure.
Office Space Demand and Market Impact
• GCCs have leased 180.9 msf over the last 9 years, driving 40% of Indian office growth.
• Bengaluru dominates the GCC landscape capturing 47% of the total GCC leasing in 2024 and accounting for over 41% of demand in 1HCY25.
• GCCs in the BFSI and Manufacturing sectors have been the standout performers, accounting for a cumulative 55.6% share in 1HCY25 leasing activity.
• In the next two years alone, GCCs are likely to lease 60-65 million square feet of Grade A space across the top 7 cities, unlocking significant real estate opportunities, fuelling demand for high-quality spaces, according to Colliers India.
• GCCs have evolved from back-office roles to innovation hubs specializing in digital transformation, R&D, and product development. This transition drives demand for high-quality Grade A, ESG-compliant office space with smart technology systems to attract top talent and enhance productivity.
In conclusion, GCCs are foundational to India’s office real estate market growth. Their rapid expansion, increasing complexity, and broad sector presence fuel rising demand for premium office spaces across India’s major cities.
This trend shapes the future of workspaces, emphasizing innovation, technology, and sustainable buildings.
Q) How will green building norms, ESG mandates, and sustainability-linked financing shape real estate development going forward?
A) Green building norms, ESG mandates, and sustainability-linked financing are transforming real estate development in India, especially in commercial and office sectors. These factors are driving demand for energy-efficient, environmentally friendly, and socially responsible buildings.
• Over 50% of new office completions in India in Q4 2024 were green-certified, and 80-85% of the future pipeline will follow this trend.
• Furthermore, more than 70% of leasing activity in Q4 2024 took place in green-certified buildings, underscoring ESG compliance as a central occupier requirement.
• Green-certified buildings command rent premiums of 18-22% on traditional Grade A offices, and flex spaces with green features can command even higher premiums of 47-50%, signalling strong market preference and higher returns.
• GCCs and multinational tenants require offices that meet global sustainability standards , making ESG compliance not just a regulatory checkbox but a core leasing requirement.
• Sustainability-linked financing is encouraging developers to prioritize green projects, rewarding them with better capital costs and attracting ESG-focused investors, accelerating adoption of green design and construction.
Green building norms, ESG mandates, and sustainability-linked finance will increasingly define the next generation of Indian real estate projects. These trends enhance asset value, reduce operational costs and environmental impact, and position India’s real estate market competitively in a global ESG-conscious investment landscape.
Q) Private equity inflows into Indian real estate remain strong—what asset classes are attracting the most global capital today?
A) Since CY22, annual investments in the real estate market have consistently surpassed the USD 5 billion threshold.
• Institutional investments reached a record-high of USD 8.9 bn across 78 deals in CY24, growing at a rate of 30% CAGR since CY21.
• 1H CY25 investments have already reached ~76% of total investments in CY21 despite a moderation of 37% y-o-y.
• Equity investments remain the dominant route for investments in the real estate sector, comprising a 78% share of the total investments.
• Residential and office sectors attracted equal share of total investments at 38% and 37% in 1H CY25, marking a notable change from previous years when investments in the office sector dominated.
• Foreign investors have continued to demonstrate a strong preference for office assets. 1H CY25 saw the office sector attract investments of roughly USD 1.1 billion across 10 transactions, maintaining similar investment levels to H1 2024.
Q) What are the key challenges that you face in the real estate industry?
A) Economic and Market Volatility
• Slowdown in GDP growth and global uncertainties may temper demand.
• Inflation and fluctuating interest rates affect affordability for homebuyers and increase borrowing costs for developers.
Affordability and Market Shifts
• Rising property prices outpace income growth, making homeownership difficult for middle-income buyers.
• Changes in buyer preferences, rental market dynamics, and demand for luxury versus affordable housing segments require developers to stay agile.
• Increased construction and material costs strain developers and can delay projects, impacting supply and pricing.
Regulatory and Legal Complexities
• Diverse state regulations, zoning laws, and property rights issues lead to approval delays and stall supply.
• New digital land registry rules require adaptation to technologies like blockchain and biometric verification but promise improved transparency.
Infrastructure and Urbanization Challenges
• Urban growth often outpaces infrastructure development, causing congestion and affecting the livability of areas.
In summary, while the Indian real estate sector shows strong growth potential, it must navigate affordability issues, regulatory complexity, economic volatility, and infrastructure gaps to gain long-term success.
Q) With increasing digitization and global exposure, how are UHNIs and HNIs changing their approach towards real estate as an asset class?
A) India’s UHNIs and HNIs are strategically rebalancing their portfolios through greater diversification, global exposure, and professional management by showing increased interest in credit-backed opportunities, and structured investments such as AIFs.
Credit and Structured Investment Trends
• HNIs/UHNIs increasingly use credit platforms and private debt funds to gain exposure to real estate asset classes, seeking fixed yields and asset-backed security, beyond traditional ownership.
• AIFs have emerged as a leading channel; real estate is the top recipient of AIF investment in 2025, INR 69,896 Crores (13%) as of March 31, 2025 . HNIs and UHNIs increasingly use AIFs to invest indirectly in high-quality real estate, attracted by hassle-free, professionally managed exposure and stable fixed income.
• Domestic investors now comprise 59% of total AIF capital in real estate, reflecting rising HNI/UHNI wealth and active engagement in structured alternative investments.
• This marks a major shift from historic reliance on foreign inflows, fostering greater market familiarity, regulatory comfort, and confidence in local opportunities.
Increased allocation to Real Estate:
• Real estate is the second-most preferred asset class after equities for UHNIs, averaging 29% of their portfolio, reflecting renewed faith in property as a capital preservation and income generation asset.
• Among real estate asset classes, residential real estate remains the preferred choice, marked by the multi-year upcycle the sector witnessed in the years post-Covid. Even with the current moderation in the industry, the market is substantially higher than pre-pandemic levels and fundamentals remain strong.
• Premium housing demand in India has surged. In 1HCY25, sales of homes worth INR 2-5 Cr and INR 5-10 Cr saw a 28% and 31% y-o-y growth respectively, accounting for 21% of total sales in the half year.
• Commercial Real Estate is also viewed as a superior asset class for long-term income generation. Indian HNIs and UHNIs are actively adding REITs to their portfolios, attracted by liquidity, transparency, and institutional-grade property access.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
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Among domestic financial companies’ investments in the overseas real estate market, 2.49 trillion wo..
in UncategorizedFinancial Supervisory Service unveils investment status of domestic financial firms, “system risk transfer is unlikely”
Among domestic financial companies’ investments in the overseas real estate market, 2.49 trillion won was found to be feared to be insolvent in the first quarter of this year. As a result, investors’ caution in related products is required, the financial authorities said.
The Financial Supervisory Service said on the 23rd that 7.57% of overseas real estate operations (32.9 trillion won) invested by domestic financial companies had caused the loss of due profits. Loss of due profit means that a financial company has the right to immediately recover its loans due to delinquency of debtors and damage to collateral at overseas real estate investments.
The total balance of overseas real estate investment, including business investment, was 55.5 trillion won. By industry, the insurance industry invested 30.3 trillion won (54.6 percent), the largest amount.
It was followed by banks worth 12.1 trillion won (21.9%) and securities worth 7.5 trillion won (13.6%). In terms of regions, North America was followed by 34.4 trillion won (62.1%), Europe 10.3 trillion won (18.5%), and Asia 3.7 trillion won (6.7%).
Concerns about insolvency were mainly focused on the office sector, where the vacancy rate is expanding. Although the quarterly loss of profits is decreasing to 2.64 trillion won in the third quarter of 2024 and 2.59 trillion won in the fourth quarter of 2024, the authorities believe that the possibility of insolvency in the office sector is still emerging.
The Financial Supervisory Service pointed out, “The office sector is still delayed due to weak structural demand such as changes in work patterns and high vacancy rates, so there is a possibility of expanding losses in the future.” As of the first quarter, the vacancy rate for overseas real estate was 20.4% for offices, 7% for industrial facilities, 6.3% for apartments, and 10.4% for retail.
However, the Financial Supervisory Service added, “The scale of (overseas real estate) is not large and the loss absorption capacity is sufficient, so it is unlikely to be transferred to system risk.” The financial sector’s investment in overseas real estate accounts for 0.8% of its total assets (7392.7 trillion won).
Compass to Buy Top Rival, Further Condensing Brokerage Industry
in UncategorizedHow Real Estate Agents Can Reclaim Their Worth in a Changing Market — RISMedia
in UncategorizedThere’s a confidence crisis happening in real estate—and it’s not just new agents feeling it. Even seasoned pros are second-guessing their worth. With commissions under scrutiny, buyers questioning fees and sellers comparing agents like commodities, it’s no wonder so many are wondering: Am I still good enough?
The answer is yes—but let’s unpack why.
In this business, your value is about more than market stats and sales volume. It’s about trust, transformation and the courage to show up day after day in one of the most emotionally charged industries in the world.
Here’s what every real estate agent—whether new, rising or top-tier—needs to remember.
This market is challenging. The headlines are loud. The rules are shifting. But your value—your real value—isn’t just in what you do. It’s in who you are when the deal gets tough, the emotions run high and the stakes are real.
You’re a navigator. A protector. A guide. That’s not just valuable—it’s irreplaceable.
For more information, visit https://darrylspeaks.com/.
Boomers control the housing market, and their enormous equity will keep them in place: Whitney
in UncategorizedBaby boomers now own a majority of U.S. homes and have the financial means to stay where they are, keeping the housing market stuck for the foreseeable future, according to top Wall Street analyst Meredith Whitney.
The CEO of Meredith Whitney Advisory Group, whose prediction of the Great Financial Crisis earned her the moniker “Oracle of Wall Street,” pointed out in a Financial Times op-ed that more than 54% of homes are owned by seniors, up from 44% in 2008.
She added that 79% of seniors own their homes, and three-fourths of them don’t have a mortgage, meaning they have an enormous amount of equity that can help cover rising homeownership costs, such as insurance.
“This has made it easier for seniors to hold on to their homes by tapping into some of this built-up equity,” Whitney explained. “And growth in such funding will be a major theme for the US economy in the next three to four years.”
The cheapest and fastest-growing form of consumer debt is now home equity lines of credit, demonstrating how much housing has become a financial resource, and seniors account for 41% of revolving home equity credit outstanding, she said.
Other debt products and new forms of credit are also available to homeowners who want to squeeze some cash out of their properties. The upshot is that housing inventory will remain limited as boomers are less inclined to downsize to smaller homes and have the financial means to stay put.
“That means the housing market will continue to be very different from before. There will be no quick fixes,” Whitney warned. “Even as 30-year mortgage rates decline, don’t expect existing home sales to pick up materially. Seniors control the proverbial chessboard, and with so many options, they aren’t moving anytime soon.”
That’s bad news for millennials and Gen Zers trying to enter the housing market. In fact, the housing market has become so unaffordable for these buyers, the number of first-time home buyers shrank to a historic low.
In May, Whitney also noted that many boomers can’t afford to move out and have been borrowing against their homes to stay where they are.
To be sure, boomers collectively have $75 trillion of wealth. But that’s not distributed evenly, and Whitney estimated that just one in 10 seniors can afford assisted-living facilities.
“Seniors are living paycheck to paycheck,” she told Bloomberg TV.
The drag from boomers on the housing market is just one of several. As President Donald Trump’s tariffs and immigration crackdown hit homebuilders, the supply of new homes is slowing.
Meanwhile, economic anxiety and still-elevated home prices are weighing on demand from prospective homebuyers, even as mortgage rates dip, and that’s spilling over to homeowners, who are increasingly pulling listings off the market.
The weak housing market even threatens to bring down the overall economy. The economist Ed Leamer, who passed away in February, famously published a paper in 2007 that said residential investment is the best leading indicator of an oncoming recession.
In the second quarter, residential investment tumbled 4.7%, accelerating from the first quarter’s 1.3% decline.
In July, Moody’s Analytics chief economist Mark Zandi singled out the housing market for concern, escalating it to a “red flare” as home sales, homebuilding, and house prices were getting squeezed by high mortgage rates.
At the same time, residential building permits—a key indicator of home construction—have been falling, and Zandi warned earlier this month that they are “the most critical economic variable for predicting recessions.”
That data is a major factor in Moody’s leading economic indicator, which estimates the odds of a recession in the next 12 months are now at 48%.
Even though it’s less than 50%, Zandi pointed out that the probability has never been that high previously without the economy eventually slipping into a downturn.
OP&F revises real estate and private market policies | News
in UncategorizedThe Ohio Police and Fire Pension Fund (OP&F) has revised investment policies for real estate and private markets, according to correspondence from the pension fund.
While the prior real estate policy recommended a minimum of 30 percent of net asset value to be invested in core investments, the updated policy changed this minimum to 25 percent.
The Private Markets Investment Policy has changed the allocation range for secondary funds from 0 percent to 20 percent and private markets from 0 percent to 15 percent. The co-investment funds allocation range also was revised from 0 percent to 15 percent to 0 percent to 10 percent.
Geographic allocations were also revised, recommending 60 percent to 100 percent to U.S. allocations, as compared with the prior recommendation of 50 percent to 80 percent, with 0 percent to 40 percent recommended for non-U.S. allocations, from 20 percent to 50 percent.
As of Sept. 16, the OP&F portfolio was valued at $20.6 bill
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in UncategorizedThe Bank of Canada has cut interest rates for the first time since March, and just a few hours later — on the same day — the U.S. Federal Reserve followed suit with its first cut this year.
It comes with both economies struggling, but that’s where the similarities end.
The two central banks have very different mandates, and while trade uncertainty has made the job tricky on both sides of the border, two distinct but connected stories continue to play out.
There are also concerns about Canada’s real estate market — and how interest rates could impact access to affordable housing.
Host Kris McCusker speaks to Randall Bartlett, deputy chief economist at Desjardins Group, about both decisions, the thinking behind the cuts, and what might be coming next.
You can subscribe to The Big Story podcast on Apple Podcastsand Spotify.
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Sub-Rs 1 cr homes still dominate India’s housing market at 51% of sales: Certus Capital Founder Ashish Khandelia
in UncategorizedIn an interview with ETMarkets, Khandelia noted that affordable housing remains a critical segment, driven by strong demand, government incentives, and improved loan eligibility.
While premium housing has seen notable growth, the sub-₹1 crore segment continues to be the backbone of the market, reflecting both enduring affordability and evolving buyer preferences across India’s top cities. Edited Excerpts –
Q) Thanks for taking the time out. CREDAI Natcon 2025 report highlighted that India’s real estate market to touch $5-10 trn by 2047. What are your views?
A) India’s real estate has advanced from a largely unregulated, localized industry to a far more institutionalized market.
The Indian real estate sector has witnessed remarkable growth over the past few decades, driven by urbanization, increasing disposable incomes, demographic changes, govt reforms/initiatives, infra growth and institutional participation.
Real estate sector in India is expected to reach USD 1 trillion in market size by 2030, up from ~USD 200 billion in 2021.
Currently real estate sector contributes ~7-9% to India’s GDP, with projections to reach ~13% by 2030 and ~15% by 2047 in line with some of the mature economies.
As per Niti Ayog, India’s GDP is expected to reach USD 30 trn which could mean India’s real estate sector could potentially reach ~USD 5 trn. It is important to note that within real estate sector, residential is the most dominant sector with strong underlying fundamentals.
Q) Indian REITs offer distribution yields of 6-7%, higher than the US or Singapore. What makes Indian REITs attractive for both domestic and global investors?
A) India’s office market has bucked the global trends of workspace contraction and is a shining beacon on the international office market stage even in the face of global uncertainties and headwinds.
Indian office market posted record highs in the 1HCY25 in terms of absorption levels. Strong India’s office market fundamentals (strong, educated and young workforce, rent arbitrage compared to global peers, sustained economic growth, rising institutional investment, and strong resilience in global office demand) augers well.
GCCs continue to dominate office demand over the last few years underscoring India’s well-established position as a leading global talent hub which was unfazed in the wake of global headwinds.
India’s REIT market has grown steadily since its first listing in 2019, reaching about USD 18 billion in value in August. With three more REITs expected over the next four years, the market could go beyond USD 25 billion.
Indian REITs make an increasingly compelling choice for both domestic and international investors to participate in the Indian office story. Investors favor REITs for their liquidity, transparency, regular income and access to high-grade commercial assets without direct property management.
However, it is important to note that despite the recent surge in the unit prices for listed office REITs, the total pre-tax return (on an annualised basis) is around 10-14% up from 5-10% 12-18months ago.
Q) Do you see a shift in preference toward structured debt, fractional ownership, or REITs among wealthy and institutional investors?
A) Yes, rising domestic wealth is seeking high-return investments with HNI/UHNI increasing their participation in Indian alternative investments.
Alternative industry & private credit market is expected to reach ~USD 238 Bn and ~USD 58 Bn by 2028 resp with CAGR (2024-28f) of ~13-15% and ~23% resp.
There is a noticeable shift among wealthy and institutional investors in India toward structured debt, fractional ownership models, and REITs.
• With growing high net worth population and increasing awareness and understanding of alt. investments, Investors are looking beyond traditional asset classes as investment option for higher yields and low fluctuation.
• Driven by tightening of lending norms of traditional lenders, there is a need for more flexible, tailored financing solutions and demand for private credit solutions. From investors point of view, such structured debt products are appealing because they offer fixed yields and lower risk profiles in a volatile interest rate environment.
• Fractional ownership platforms are gaining traction, allowing groups of investors to co-own Grade A real estate and diversify portfolios without massive capital outlays.
• Growing comfort with tech-enabled platforms, stronger regulatory oversight, and demonstrated performance of listed REITs accelerate this trend.
Overall, the evolution toward REITs, structured debt, and fractional ownership represents a maturing and more diversified investment landscape in Indian real estate.
Still there is significant growth potential ahead- private credit AUM in developed markets ranges from 4-4.5% of GDP compared to 0.5% of GDP in India.
Q) With housing demand resilient post-COVID and interest rates easing, how do you see residential sales trending over the next 12-18 months?
A) In the past few months, residential market has witnessed a correction in sales after an extended runup post-COVID. Real estate cycle has entered stabilisation phase.
This dip was mainly on account of the market taking a breather post this extended runup. Increase in sales price and has resulted in increasing consumer decision time as well.
Developers have also adopted a more cautious approach, emphasizing on project completions and selectively launching projects.
Despite the moderation in sales and the overall macroeconomic headwinds, the overall market remains substantially higher than pre-pandemic levels with sales and launches in 1HCY25 already reaching c.73% and c.84% of CY19 levels resp.
Even with reduction in sales volume, total sales value has steadily grown to INR 1.47 lakh Cr in 1HCY25, amidst rising property prices and a shift towards larger homes.
Strong underlying fundamentals, recent govt/RBI initiatives (repo rate cuts, GST rates) and relatively healthy developer balance sheet suggests stabilization and resilience rather than prolonged weakness in India’s residential real estate market.
Q) How affordable is affordable housing now? How much one need to buy a house in Tier 1 and Tier II cities?
A) Residential housing prices have been consistently rising over the past few years, driven by high land costs and growing demand for larger, premium homes.
Rising construction expenses and inflation have further pushed prices upward, limiting homeownership for many lower- and middle-income families.
Nevertheless, the sub-INR 1 crore segment remains sizeable, accounting for 51% of sales and about 64% of unsold inventory in 1H CY25.
Price Trends:
• Residential prices across top 7 cities have increased at a CAGR of 18.2% over CY22-24, however, price growth over the last 5 years (CY19-24) is moderate at c.9%.
• In the last 5 years (CY19-24), Hyderabad, Bangalore and NCR have seen the highest average price increase between 10.5 – 11.7%, while other cities maintained a moderate 5.8 – 9.4% increase.
• While in recent years (CY22-24), Mumbai, Bangalore, NCR and Hyderabad saw a high avg. price psf growth rate between 18-26%, while the other three cities, Pune, Chennai and Kolkata had a relatively modest growth of between 11-13.5%.
• With improved affordability, driven by lower interest rates, higher loan eligibility and benefits of GST cuts passed on to the buyer, demand across segments, especially in the units priced below INR 1 Cr, is expected to boost.
Q) Global Capability Centers (GCCs) continue to expand in India. How critical is this trend for office market demand?
A) The expansion of Global Capability Centers (GCCs) in India is highly critical for office market demand, serving as a major growth engine in the commercial real estate sector. India currently hosts nearly 1,950 GCCs employing around 1.9 million people.
Major tier I cities such as Bengaluru, Hyderabad, Chennai, Delhi NCR, Mumbai, and Pune house 94% of India’s GCCs, thanks to their strong talent base, progressive policies, and robust infrastructure.
Office Space Demand and Market Impact
• GCCs have leased 180.9 msf over the last 9 years, driving 40% of Indian office growth.
• Bengaluru dominates the GCC landscape capturing 47% of the total GCC leasing in 2024 and accounting for over 41% of demand in 1HCY25.
• GCCs in the BFSI and Manufacturing sectors have been the standout performers, accounting for a cumulative 55.6% share in 1HCY25 leasing activity.
• In the next two years alone, GCCs are likely to lease 60-65 million square feet of Grade A space across the top 7 cities, unlocking significant real estate opportunities, fuelling demand for high-quality spaces, according to Colliers India.
• GCCs have evolved from back-office roles to innovation hubs specializing in digital transformation, R&D, and product development. This transition drives demand for high-quality Grade A, ESG-compliant office space with smart technology systems to attract top talent and enhance productivity.
In conclusion, GCCs are foundational to India’s office real estate market growth. Their rapid expansion, increasing complexity, and broad sector presence fuel rising demand for premium office spaces across India’s major cities.
This trend shapes the future of workspaces, emphasizing innovation, technology, and sustainable buildings.
Q) How will green building norms, ESG mandates, and sustainability-linked financing shape real estate development going forward?
A) Green building norms, ESG mandates, and sustainability-linked financing are transforming real estate development in India, especially in commercial and office sectors. These factors are driving demand for energy-efficient, environmentally friendly, and socially responsible buildings.
• Over 50% of new office completions in India in Q4 2024 were green-certified, and 80-85% of the future pipeline will follow this trend.
• Furthermore, more than 70% of leasing activity in Q4 2024 took place in green-certified buildings, underscoring ESG compliance as a central occupier requirement.
• Green-certified buildings command rent premiums of 18-22% on traditional Grade A offices, and flex spaces with green features can command even higher premiums of 47-50%, signalling strong market preference and higher returns.
• GCCs and multinational tenants require offices that meet global sustainability standards , making ESG compliance not just a regulatory checkbox but a core leasing requirement.
• Sustainability-linked financing is encouraging developers to prioritize green projects, rewarding them with better capital costs and attracting ESG-focused investors, accelerating adoption of green design and construction.
Green building norms, ESG mandates, and sustainability-linked finance will increasingly define the next generation of Indian real estate projects. These trends enhance asset value, reduce operational costs and environmental impact, and position India’s real estate market competitively in a global ESG-conscious investment landscape.
Q) Private equity inflows into Indian real estate remain strong—what asset classes are attracting the most global capital today?
A) Since CY22, annual investments in the real estate market have consistently surpassed the USD 5 billion threshold.
• Institutional investments reached a record-high of USD 8.9 bn across 78 deals in CY24, growing at a rate of 30% CAGR since CY21.
• 1H CY25 investments have already reached ~76% of total investments in CY21 despite a moderation of 37% y-o-y.
• Equity investments remain the dominant route for investments in the real estate sector, comprising a 78% share of the total investments.
• Residential and office sectors attracted equal share of total investments at 38% and 37% in 1H CY25, marking a notable change from previous years when investments in the office sector dominated.
• Foreign investors have continued to demonstrate a strong preference for office assets. 1H CY25 saw the office sector attract investments of roughly USD 1.1 billion across 10 transactions, maintaining similar investment levels to H1 2024.
Q) What are the key challenges that you face in the real estate industry?
A) Economic and Market Volatility
• Slowdown in GDP growth and global uncertainties may temper demand.
• Inflation and fluctuating interest rates affect affordability for homebuyers and increase borrowing costs for developers.
Affordability and Market Shifts
• Rising property prices outpace income growth, making homeownership difficult for middle-income buyers.
• Changes in buyer preferences, rental market dynamics, and demand for luxury versus affordable housing segments require developers to stay agile.
• Increased construction and material costs strain developers and can delay projects, impacting supply and pricing.
Regulatory and Legal Complexities
• Diverse state regulations, zoning laws, and property rights issues lead to approval delays and stall supply.
• New digital land registry rules require adaptation to technologies like blockchain and biometric verification but promise improved transparency.
Infrastructure and Urbanization Challenges
• Urban growth often outpaces infrastructure development, causing congestion and affecting the livability of areas.
In summary, while the Indian real estate sector shows strong growth potential, it must navigate affordability issues, regulatory complexity, economic volatility, and infrastructure gaps to gain long-term success.
Q) With increasing digitization and global exposure, how are UHNIs and HNIs changing their approach towards real estate as an asset class?
A) India’s UHNIs and HNIs are strategically rebalancing their portfolios through greater diversification, global exposure, and professional management by showing increased interest in credit-backed opportunities, and structured investments such as AIFs.
Credit and Structured Investment Trends
• HNIs/UHNIs increasingly use credit platforms and private debt funds to gain exposure to real estate asset classes, seeking fixed yields and asset-backed security, beyond traditional ownership.
• AIFs have emerged as a leading channel; real estate is the top recipient of AIF investment in 2025, INR 69,896 Crores (13%) as of March 31, 2025 . HNIs and UHNIs increasingly use AIFs to invest indirectly in high-quality real estate, attracted by hassle-free, professionally managed exposure and stable fixed income.
• Domestic investors now comprise 59% of total AIF capital in real estate, reflecting rising HNI/UHNI wealth and active engagement in structured alternative investments.
• This marks a major shift from historic reliance on foreign inflows, fostering greater market familiarity, regulatory comfort, and confidence in local opportunities.
Increased allocation to Real Estate:
• Real estate is the second-most preferred asset class after equities for UHNIs, averaging 29% of their portfolio, reflecting renewed faith in property as a capital preservation and income generation asset.
• Among real estate asset classes, residential real estate remains the preferred choice, marked by the multi-year upcycle the sector witnessed in the years post-Covid. Even with the current moderation in the industry, the market is substantially higher than pre-pandemic levels and fundamentals remain strong.
• Premium housing demand in India has surged. In 1HCY25, sales of homes worth INR 2-5 Cr and INR 5-10 Cr saw a 28% and 31% y-o-y growth respectively, accounting for 21% of total sales in the half year.
• Commercial Real Estate is also viewed as a superior asset class for long-term income generation. Indian HNIs and UHNIs are actively adding REITs to their portfolios, attracted by liquidity, transparency, and institutional-grade property access.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
Historic ‘Hair’ composer’s Silver Lake estate hits market for $3.25M | Staten Island Home of the Week
in UncategorizedSTATEN ISLAND, N.Y. — For the first time in over 50 years, a historic hilltop estate in Staten Island’s coveted Silver Lake neighborhood is available for purchase at $3.25 million, according to the Staten Island Multiple Listing Services, MLSSINY.com listing.
The six-bedroom Colonial brick home at 12 Silver Lake Road was the longtime residence of Galt MacDermot, the legendary composer behind the Broadway musical “Hair,” according to the listing realtor Michele Connelly of Neuhaus Realty, Inc.
This unique home became a quiet hub for creativity, where MacDermot composed, mentored, and even collaborated with artists later in life.
Built in 1925, the stately former schoolhouse spans approximately 7,050 square feet, including a finished attic and partially finished cellar.
The property stands as a testament to enduring craftsmanship and architectural grace, with rich period details awaiting restoration or thoughtful modernization, mentioned in the listing.
The home’s grand two-story entry foyer leads to a formal living room with a fireplace that opens to a sun-filled home office,
The main level also features a formal dining room, charming sunroom, spacious eat-in kitchen with walk-in pantry, two additional versatile rooms, and a half bath.
Upstairs, accessible by either the main staircase or the back staircase, the primary suite boasts a walk-in closet, private bath, and access to a large balcony. Three additional bedrooms — one with its own balcony — plus a sunroom and two full bathrooms complete the second floor. The finished attic provides extra living space with an additional bathroom.
Set on an expansive 23,212-square-foot hillside lot, the property includes a detached brick two-car garage with a 300-square-foot apartment above. From its elevated position, the estate offers seasonal views of Manhattan, a serene atmosphere, and proximity to parks, golf, and Staten Island’s cultural destinations.
Virtual Tour: https://app.doaudiotours.com/unbranded?id=12339&lang=en-US
Generative AI was used to structure and draft this story, based on data provided by the property listing. It was reviewed and edited by the Advance/SILive.com staff.
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The ‘best time’ to buy a home is right around the corner. Here’s what you need to know
in UncategorizedThe housing market has been particularly brutal the past couple of years. While the pandemic ushered in an era of sub-3% mortgage rates, those climbed to levels peaking at 8% in October 2023. Current mortgage rates are still hovering around the low-6% range and home prices are 55% higher than they were at the beginning of 2020, according to the Case-Shiller U.S. National Home Price Index.
But the U.S. housing market is slowly but surely moving in favor of buyers. Mortgage applications surged nearly 30% last week, according to the Mortgage Bankers Association. Home prices are also starting to plateau and even drop in some markets.
“For prospective buyers who have been waiting on the sidelines, the housing market is finally starting to listen,” First American chief economist Mark Fleming wrote in an Aug. 29 First American post.
Considering those factors, among others, the “best time” to buy a home this year is right around the corner, according to a Realtor.com report published this week. Realtor.com says the week of Oct. 12-18 will be 2025’s “sweet spot” for home shoppers thanks to a “rare combination” of higher inventory levels, lower home prices, and less competition. For the report, Realtor.com analyzed six supply-and-demand metrics at a national and metro level that follow seasonal patterns using data from 2018 to 2024.
“After years of constrained conditions, the 2025 housing market is giving buyers something they haven’t had in a long time: options,” Danielle Hale, Realtor.com chief economist, said in a statement. “I expect this market momentum shift to magnify typical seasonal trends that favor homebuyers in the fall.”
While spring is historically considered the peak homebuying season, there is usually more competition and higher prices during that time of the year. Realtor.com data suggests there will be 32.6% more homes for sale than at the beginning of 2025, home prices could be up to $15,000 lower than a median-priced home during peak season, and there’s potential for 30.6% less competition than peak homebuying season during the week of Oct. 12-18.
“In addition to the seasonal bump in inventory, it’s also a smart window to go under contract before the holidays,” Steph Mahon, owner of real-estate firm Dwell New Jersey, told Fortune. “By moving now, you can complete inspections, loan paperwork, and other due-diligence tasks ahead of Thanksgiving, avoiding the added stress of juggling it all during the holiday season.”
Buying season varies by market
Although the overall best week to buy a home in the U.S. is Oct. 12-18, that timing varies some based on geography. The national “best week” applies to many metro areas like Houston, Los Angeles, and Washington, D.C., but some may be earlier or later, according to Realtor.com. Of the 50 largest U.S. metros, 45 will experience their best time to buy within a month of the national average.
New York, Philadelphia, Chicago, Atlanta, and Dallas will see more buyer-friendly conditions starting in September.
In Manhattan, “September happens to simultaneously be the month that experiences both the highest new supply to come on the market and the lowest contract activity volume being recorded,” Noah Rosenblatt, CEO and cofounder of real-estate analytics firm UrbanDigs, told Fortune.
Florida markets including Miami and Tampa, however, can peak as late as December, Realtor.com data shows. In fact, Philadelphia and Milwaukee already had their “best weeks” from September 7-13.
In South Florida, buying season “is coming both for seasonal renters who purchase, snowbirds and families who want to be in for the winter,” Jeff Lichtenstein, CEO and broker at Echo Fine Properties in West Palm Beach, told Fortune. “We’ve seen a three-and-a-half-year pent up demand period, so it’s just ripe.”
Other early starts include Hartford, Conn., Memphis, Tenn., and Virginia Beach, Va. But for homebuyers looking in Charlotte, N.C., Louisville, Ken., Phoenix, Miami, or Tampa, November will likely be your best bet, according to Realtor.com data.
“Get your preapprovals done and understand out-of-state contracts if making a move,” Lichtenstein said. “Expect more competition so the more ready you are, the less likely you are okay to pull the trigger and not lose a house.”