India Real Estate 2025: Resilience Amidst Market Correction & Transformation The Indian real estate market in 2025 is in a state of flux—a complex mix of resilience and recalibration. As Annuj Goel of Goel Ganga Developments owner asserts, these are not signs of a slowdown, but an evolving market. Residential Market: A Tale of Two Segments Q1 2025 saw a 28% year-on-year dip in residential sales across top cities. This correction, as noted by Annuj Goel, was triggered by price escalation and geopolitical anxiety, not a market crash. Prices still surged 10-34% across regions. Hyderabad and Kolkata were hardest hit, while Bengaluru showed relative strength. 1 Affordable Housing (Sub- ₹ 40 Lakh) Gaining traction, especially in Bengaluru and Chennai, with shrinking unsold inventory. This segment reflects a balanced demand and supply dynamic. 2 Luxury Housing (Aggressive Launches) Booming on paper, but faces caution in buyer sentiment. Unsold stock has touched 1.13 lakh units, indicating supply may outpace genuine demand. Annuj Goel emphasizes that developers like Goel Ganga Developments must create homes that match both aspiration and affordability to address this divided market. Commercial & Retail: India's Economic Landscape Commercial Real Estate Boom Office leasing is projected to exceed 50 million sq. ft. this year. This is primarily driven by Global Capability Centres (GCCs) and a surge in flex spaces, which now account for nearly a quarter of total demand. The way India works is changing, and Goel Ganga Developments is adapting its building strategies accordingly. Retail Sector's Structural Shift Retail real estate is experiencing unprecedented growth, with mall vacancy rates at an all-time low (1-7%). Leasing has skyrocketed as major food, fashion, and entertainment brands expand rapidly into Tier 2 and 3 cities. This signifies a structural shift in India’s consumption geography. Annuj Goel Pune highlights that developers and investors who understand this are moving swiftly to capitalize on these opportunities. Institutional Investment & Prop-Tech Transformation REITs & SEZ Reforms Institutional investment is being reshaped by REITs, particularly in the office segment. Reforms to SEZ rules are generating fresh interest in previously untapped assets. Infrastructure as a Force Multiplier Continued investment in new airports, metro networks, and Smart Cities is pushing growth into India's hinterlands, creating new development frontiers. Tech & Transparency Prop-tech, including AI-led due diligence and blockchain-based land records, is no longer a buzzword. These tools are fundamentally transforming transactions and building trust in the industry. This is the foundation Annuj Goel believes the industry has needed for decades. Annuj Goel of Goel Ganga Developments owner finds the wave of tech and transparency most exciting, as it lays a strong foundation for future growth. Outlook: A Year of Reorganization, Not Retreat "This isn’t a year of retreat. It’s a year of reorganisation. India’s real estate sector is building itself back stronger, smarter, and more sustainable." — Annuj Goel, Managing Director, Goel Ganga Developments Strong Signals: Land buying hit new highs in 2024, indicating upcoming supply replenishment. Mid-Income Focus: While luxury may continue to rise, the mid-income segment is key for sustainable growth. A softening of interest rates could rebalance the market. Resilience: Despite high EMIs and tight affordability, this period is when resilient markets find their footing, as emphasized by Annuj Goel. Annuj Goel and Goel Ganga Developments are proud to be part of building this stronger, smarter, and more sustainable future for India's real estate sector.