In an interaction with Homes India, Nitish Kukreja, Founder at Designheed, shares that 2025 was the pivotal year in the Indian real estate sector as homebuyers continue to look for functionality in their property, and are less focused on the appearance of luxury products, instead prioritising resilient, long-term returns on investment.
Nitish Kukreja brings extensive knowledge in the areas of infrastructure, design, manufacturing, and workforce solutions, which all started in 1952 with HLK Group. With an emphasis on EPC contracting, industrial construction, BIM led design, and operational scalability, he heads up businesses that provide comprehensive solutions in many industries.
Across residential segments, buyers showed a strong preference for well-planned layouts over sheer size. Efficient circulation, usable balconies, flexible rooms, natural light, ventilation, and storage gained importance. Spaces that could adapt to changing needs such as home offices, study rooms, or guest rooms became central to purchase decisions. This shift was visible among both first-time buyers and upgraders. With hybrid work becoming normalised, homes were expected to support productivity as well as comfort. Buyers began asking deeper questions about structural quality, maintenance costs, energy efficiency, and long-term durability.
Organised housing gained momentum as trust shifted toward professionally managed developments offering consistent quality, regulatory compliance, and transparent delivery timelines. In many emerging urban centres, organised developers increasingly replaced fragmented, unplanned growth.
Infrastructure upgrades played a decisive role in reshaping demand. Improved highways, metro extensions, and regional connectivity made Tier 2 and Tier 3 cities more viable for long-term settlement. Cities such as Jaipur, Lucknow, Bhubaneswar, and Indore saw increased interest from buyers seeking better quality of life at more accessible price points.
Economic diversification also contributed to this shift. Growth in gig work, freelancing, remote roles, and regional entrepreneurship expanded middle-class purchasing power beyond metro cities. Buyers in these markets showed a strong preference for secure communities with reliable infrastructure, parking, EV readiness, and sustainable systems.
For developers, this signalled a need to rethink product strategies. Replicating metro-style luxury without adapting to local needs proved ineffective. Projects that responded to regional climate conditions, lifestyle patterns, and affordability expectations saw stronger absorption.
The commercial real estate segment also evolved significantly in 2025. Demand shifted away from rigid office formats toward flexible, decentralised, and mixed-use environments. Businesses prioritised employee well-being, shorter commute times, and access to shared amenities.
Plug-and-play offices, co-working hubs, and smaller distributed workspaces gained traction. Employers preferred locations closer to residential clusters, reducing travel time and improving productivity. This trend pushed planners and developers to rethink zoning norms and encourage integrated live-work environments.
Retail and commercial spaces increasingly focused on experience, convenience, and adaptability. Rather than large standalone developments, mixed-use hubs that combined workspaces, retail, healthcare, and recreation performed better.
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Extreme weather events and erratic monsoons during 2025 brought renewed attention to engineering quality and climate resilience. Buyers became more aware of flood management systems, drainage planning, waterproofing, and energy efficiency.
Projects that incorporated rainwater harvesting, permeable pavements, efficient waste management, and smart energy systems saw stronger demand. Sustainability was no longer viewed as an optional feature but as a practical necessity that directly impacted safety, comfort, and operating costs.
Luxury buyers, in particular, showed increased interest in gated communities with strong infrastructure, security, and long-term asset stability. Rather than speculative purchases, luxury real estate was increasingly seen as a hedge against volatility and a stable store of value.
As the industry moves into 2026, developers face a more informed and demanding market. Success will depend less on branding and more on execution quality, planning intelligence, and adaptability.
Developers will need to institutionalise design thinking beyond aesthetics. This means integrating design, engineering, sustainability, and user behaviour early in the project lifecycle. Digital tools such as BIM, modular planning, and data-led decision-making can help reduce timelines, control costs, and improve predictability. Projects that prioritise resilience, flexibility, and long-term usability are likely to command stronger absorption and pricing stability. In contrast, inventory built around outdated luxury concepts may continue to face slower sales.
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For buyers, the lessons from 2025 are clear. Purchase decisions should focus on layout efficiency, construction quality, and long-term usability rather than size or surface finishes alone. Well-designed homes often outperform larger but poorly planned units in both livability and resale value.
Evaluating engineering quality, energy efficiency, and maintenance implications is essential. Organised developments with clear governance structures and transparent processes offer greater long-term security. In premium segments, buyers are increasingly advised to view real estate as a long-term asset rather than a speculative trade. Stability, resilience, and adaptability will define value in the coming years.
The changes seen in 2025 reflect a maturing real estate ecosystem in India. Buyers, developers, designers, and planners are increasingly aligned around the idea that good real estate is not just built it is thoughtfully planned.
As the industry enters 2026, collaboration across disciplines will be critical. Cities that encourage mixed-use development, flexible zoning, and infrastructure-led planning will be better positioned to support sustainable growth. The future of real estate lies in creating spaces that respond to how people actually live, work, and evolve. Developments that balance functionality, resilience, and human-centric design will define the next phase of India’s built environment. The opportunity ahead is not just to build more, but to build better with clarity, purpose, and long-term value at the core.
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