Mr. Sarveshaa SB, Chairman & MD, BHADRA Group says “The year 2024 has been a remarkable one for India’s residential real estate sector. Achieving record-breaking sales of 2,60,349 units in the first nine months, a 9% increase from the previous year, the industry showcased its ability to evolve and thrive. From catering to the growing demand for luxury housing to adapting to changing market dynamics, the sector demonstrated resilience and innovation. The integration of technology, including virtual reality property tours and AI-driven personalization, has transformed the way homes are marketed and purchased, making processes more transparent and customer-focused
He added, “As we look ahead, the milestones of 2024 give us immense confidence for the future. With urbanisation gaining momentum and sustainability becoming a key priority, the real estate industry is well-positioned to redefine urban living. The surge in luxury housing sales, accounting for 46% of all sales in Q3 2024, indicates a shift in buyer preferences towards premium properties. By focusing on quality, innovation, and eco-conscious development, including the integration of smart home technologies and green building practices, this sector will continue to create meaningful value for communities and contribute to India’s growth story”.
Mr. Ankur Jalan, Chief Executive Officer (CEO) of Golden Growth Fund says The luxury real estate market experienced strong growth this year, and the momentum looks set to continue into the next. Rising purchasing power, coupled with aspirations among the younger generation (aged 30+), has driven demand for premium properties. Banks have been increasingly supportive, offering favorable terms to buyers. Additionally, the demand for luxury amenities such as private pools, jacuzzis, steam rooms, luxury bars, and other bespoke features has significantly risen, reshaping buyer expectations.
For instance, in Delhi, the real estate market has witnessed remarkable growth, with plot rates increasing by 20-30% over the past year. This surge has also influenced flat prices, particularly in high-demand areas like South Delhi and Lutyens’ Delhi. South Delhi’s Category A colonies present exceptional opportunities in the luxury real estate sector, contributing to a market valuation exceeding ₹2 lakh crores. The current trend appears sustainable, as it is predominantly driven by end-users rather than speculative investors, ensuring steady growth and stability in the market
Pushpamitra Das, Founder & Director, JUSTO says disbursements in India exhibited a modest growth of 9.2% in FY 2024 on the back of 18.2% growth in FY 2023. Public Sector Banks (PSBs) maintained a dominant position, holding 43% of the market value and 40% of active loans, while the private sector accounts for 23% of the market value and 34.5% of active loans. Housing Finance Companies (HFCs) contribute 22.5% to the market value and 19.4% to active loans. Foreign institutions represent a minimal 0.2% market value and 0.6% active loans, whereas the Others category has 11.3% market value and 5.5% active loans.
In FY24, there was an increase in the average home loan amount across all lenders. Public Sector Banks (PSBs) reported an 11% year-on-year growth, with the average loan amount rising to ₹28 lakhs. Private Banks recorded a 7% increase, with the average loan amount reaching ₹42 lakhs, according to CRIF High Mark.
The Reserve Bank of India (RBI) maintained the repo rate at 6.5% throughout 2024. In December 2024, the RBI reduced the Cash Reserve Ratio (CRR) by 50 basis points to 4%, a move expected to enhance liquidity and potentially lower home loan interest rates.
The 2024-2025 Union Budget introduced measures aimed at transforming the real estate sector, particularly in affordable housing, taxation, and infrastructure development, which are expected to influence the home loan industry positively. Analysts predict that home loan borrowers may experience relief in 2025, with expected interest rate cuts ranging from 50 to 100 basis points, contingent on economic indicators such as GDP growth and inflation.
In summary, the home loan industry in India during FY 2024-2025 experienced a slowdown in growth, influenced by monetary policies and market dynamics. However, with anticipated interest rate cuts and supportive government initiatives, the sector is poised for a potential rebound in the coming years.
Rohit Agarwal, Co-Founder & Head of Business Operations, Urban Space says “As we enter 2025, the home decor industry is transforming, driven by a powerful blend of personalization, sustainability, and technological innovation. Consumers are no longer just seeking aesthetics, but holistic living environments that seamlessly blend functionality, individual expression, and environmental consciousness. Emerging trends like intelligent home ecosystems, biophilic design, and wellness-centric spaces are not just design choices, they’re a reflection of our evolving relationship with living spaces. At Urban Space, we’re pioneering this vision, crafting environments that are not merely decorated rooms, but living canvases that tell stories of individual identity, technological harmony, and ecological responsibility.”
Priyesh Chheda, Founder, Arbour Investments says India’s economic momentum continues to astound, with a projected GDP growth of 7.2% for FY 2025, reaffirming its status as the fastest-growing large economy in the world. This robust expansion is driving transformative trends across industries, particularly in logistics, warehousing, and real estate, fueled by innovation, infrastructure, and investment.
