Mr. Nagabushana Reddy CEO, Founder & Managing Director, NBR Group Reflects On The Shifts That Defined The Indian Real Estate market In 2025

As the year 2025 draws to a close, India’s real estate sector reflects a year defined by steadiness, resilience, and a more thoughtful pace of decision-making. Activity remained healthy across both residential and commercial segments, but what truly stood out was the confidence with which the market moved forward. Homebuyers and investors were clearer about what they wanted, and developers responded with greater intent and discipline.

For me, the year was not marked by sudden surges, but by the way the market matured. Demand was driven less by urgency and more by purpose. Buyers increasingly prioritised homes that offered long-term comfort, planning clarity, and environments that support everyday well-being.

Policy support played an important role in reinforcing this confidence. The cumulative reduction in interest rates by the Reserve Bank of India helped ease borrowing costs, while income tax relief announced in the Union Budget strengthened purchasing power. Along with GST rationalisation, these measures created a stable backdrop for housing demand, particularly in markets such as Bengaluru.

We, at The NBR Group strongly feel that Bengaluru continues to demonstrate strong momentum through 2025, especially in the premium and luxury housing segments. Homes priced above one crore accounted for a majority share of sales in the first half of the year, signalling a clear shift in buyer preference. Project launches followed a similar trend, with developers focusing on high-quality, well-located developments that aligned with evolving lifestyle expectations.

The growing demand within the luxury premium segment, particularly for homes in the Rs 1.50 crore to Rs 4.00 crore range, reflected a shift in how buyers evaluated value. Space, privacy, access to greenery, and quality of construction became central considerations. Technology professionals, entrepreneurs, and global Indians increasingly sought homes that could support both professional demands and personal well-being.

The ultra-luxury segment progressed at a more measured and selective pace compared to the previous year. However, demand remained strong and focused within established micro-markets such as Bannerghatta Road, Sarjapur Road–Gunjur, Kanakapura Road, and key North Bengaluru corridors including Yelahanka, Hennur, and Devanahalli. Buyers in this category demonstrated discernment, placing greater emphasis on developer credibility, location strength, and long-term relevance.

Across the city, micro-markets such as Whitefield, Sarjapur Road, Bannerghatta Road, and North Bengaluru continued to benefit from infrastructure development, metro expansion, and improved connectivity. These factors supported residential demand and reinforced Bengaluru’s position as a preferred destination for premium housing.

One of the clearest takeaways from the year 2025 was that execution and trust have become defining factors in buyer decision-making. Developers with a proven track record of compliance, transparency, and timely delivery were rewarded with sustained interest.

The year 2025 served as a reminder that real estate is ultimately a business of responsibility. People are not just buying homes; they are placing long-term trust in how a development is planned, delivered, and maintained. That trust is earned through consistency, clarity, and respect for the buyer.

Looking ahead towards 2026, the outlook remains positive, though grounded in realism. Property prices in the premium and luxury segments are expected to see gradual appreciation, supported by steady demand, limited inventory, and rising input costs. At the same time, buyers are likely to remain selective, favouring projects that demonstrate planning integrity and long-term value.

We, at the NBR Group feel that the coming year presents an opportunity for the sector to build with greater thoughtfulness. Sustainability, smart urban design, and timely execution will continue to shape buyer expectations. Real estate is expected to remain a preferred long-term investment while also contributing meaningfully to employment generation, infrastructure growth, and India’s broader development vision.

As the year closes, the lessons are clear. Stability matters. Intent matters. And those who focus on building well, rather than building fast, will continue to shape the future of India’s urban landscape.

Published on: Tuesday, December 30, 2025, 04:21 PM IST