REAL ESTATE INVESTING

INDIA REAL ESTATE 2025: A STRATEGIC WINDOW

November 2024

Read Time: 6 minutes

India Real Estate 2025: A Strategic Window for Discerning Investors

At Broadwings Family Office, we believe that real estate, when approached with foresight and discipline, can be an enduring pillar in a family's portfolio. Today, as India's property sector enters a renewed growth cycle, we ask an important question: Is now the right time to invest?

To answer that, let’s look beyond headlines and trends—and assess the sector through the lens of wealth preservation, long-term value, and strategic allocation.

🧭 India's Real Estate: Entering a Decisive Phase

The Indian real estate sector is expected to reach USD 1 trillion by 2030, contributing close to 18–20% of GDP. This is not merely a statistic—it’s a reflection of India’s urban ambition, rising affluence, and expanding economic base.

  • Residential, particularly luxury housing, saw 151% YoY growth in 2023
  • Data centres and logistics parks are leading the way in commercial demand
  • Global institutional investors like Blackstone are actively scaling their India commitments

This is not a trend—it’s a transformation.

🏙 Growth Is No Longer Metro-Restricted

While Mumbai, Bengaluru, and Delhi-NCR remain the powerhouses, new opportunity corridors are emerging across Hyderabad, Pune, Ahmedabad, and Tier-2 cities. These locations are riding on improved infrastructure, startup activity, and reverse migration post-pandemic.

Office space absorption in 2022 alone stood at 38.25 million sq. ft., with Hyderabad outpacing Bengaluru in new supply—a sign of how India’s investment map is being redrawn.

🏡 Residential Demand Holds Firm

Despite rising input costs and global uncertainties, residential prices in the top 8 cities rose 7% year-on-year in 2023. Mumbai remains the costliest, but emerging zones like Thane, Whitefield, Gachibowli, and Noida Expressway offer better yields and growth potential.

The luxury and premium segments are witnessing renewed interest from global Indians, startup founders, and family offices—a signal that buyers are prioritising lifestyle, asset quality, and long-term appreciation over short-term gains.

🔑 What’s Driving the Surge?

  1. Demographics & Urbanisation: By 2025, over 540 million Indians will live in urban areas. With rising disposable income and lifestyle aspirations, both ownership and rental housing will remain in demand.
  2. Government Push: Initiatives like Smart Cities Mission, PMAY, and improved REIT frameworks are institutionalising the sector. Regulatory clarity under RERA has also improved investor confidence and accountability.
  3. Infrastructure & FDI: India’s infrastructure capex is the highest in decades—metro projects, expressways, and economic corridors are unlocking new zones. FDI into construction (USD 55.5 billion till Dec 2022) is also accelerating global-grade development quality.
  4. Evolving Work Models: With the rise of hybrid work, the demand for co-working, suburban offices, and flexible commercial leasing has surged. This makes commercial real estate an interesting option for strategic investors seeking income-yielding assets.

📌 Real Estate as an Asset Class – A Broadwings View

  • ✔ Tangibility with Purpose: Unlike equity or debt, real estate offers a tangible utility—whether in the form of rental income, strategic diversification, or legacy creation.
  • ✔ Portfolio Hedging: As inflation rises globally, real estate provides a natural inflation hedge, particularly with income-generating commercial properties or structured residential portfolios.
  • ✔ Intergenerational Transfer: Property—especially one with high emotional or utilitarian value—often becomes a core legacy asset, anchoring family continuity.

📊 Is Now the Right Time?

There is no one-size-fits-all answer. At Broadwings, we guide our families through a framework based on:

  • Goal Clarity: Is the objective yield, capital appreciation, diversification, or legacy?
  • Structure: Should it be held in a trust, LLP, SPV, or individual name?
  • Market Depth: Are you entering a rising tide or a speculative bubble?
  • Tenure: Can you stay invested for 8–12 years if needed?
  • Liquidity Needs: Can this allocation be locked without disrupting your overall plan?

If your wealth structure and long-term goals align, this could indeed be a compelling entry point.

🛡 Real Estate Investment: Strategic Considerations

  • Interest Rate Cycles: While rates have risen, they remain within an acceptable range. Fixed long-tenure borrowing at today’s levels can still work favourably over a 10-year horizon.
  • Developer Credentials: Work only with tier-1 developers with a strong balance sheet and delivery record.
  • Exit Planning: Whether via REITs, fractional ownership, or direct resale—understand your exit strategy upfront.
  • Taxation & Structuring: Leverage the right holding structures to minimise capital gains, inheritance tax, or repatriation risk—especially for NRIs.

🌐 Broadwings Real Estate Advisory: Beyond Transactional

We offer families strategic investment advisory across residential, commercial, logistics, and alternative real estate segments, including:

  • Deal evaluation & due diligence
  • Title verification & legal support
  • SPV/trust structuring
  • Rental yield strategy & property management
  • REIT, INVIT and fund access via curated partner platforms

We work only with vetted developers and global networks to ensure families have access to exclusive, off-market opportunities aligned with their vision.

🧭 Final Thoughts: Asset or Anchor?

Real estate remains one of the few asset classes that combine utility, emotional capital, and financial returns. It can be volatile in pockets but has historically preserved value over generations—when approached with care, structure, and strategy.

At Broadwings, we help families answer not just “Is this the right time?”, but the more important question—
“Is this the right time for us?”

Author: Broadwings Family Office Editorial Team