Is Now the Right Time to Invest in Real Estate in India? Experts Weigh In

Real estate has long been considered a cornerstone of wealth creation in India. Traditionally viewed as a safe and stable investment, property has provided Indians with long-term capital appreciation, rental income, and a tangible asset to pass on to the next generation. But in 2025, amidst changing economic conditions, rising interest rates, and volatile global markets, many are asking: Is now the right time to invest in real estate in India?

To help answer this critical question, we turned to industry experts, data-driven insights, and market trends to paint a clear picture of where the Indian property market standsand where its headed.

Current Market Snapshot: A Post-Pandemic Rebound

Over the last few years, real estate in India has witnessed a steady comeback from the pandemic-induced slowdown. Residential sales surged in 2022 and 2023 across key cities like Mumbai, Bengaluru, Pune, Hyderabad, and Delhi-NCR. According to Knight Frank India, the residential segment saw a 20% YoY increase in sales in 2023 alone.

Why the rebound? A combination of low-interest home loans (in the range of 6.58.5%), government-backed incentives like PMAY, and a growing preference for owning larger homes post-COVID contributed to this growth. In the commercial space, the expansion of IT, e-commerce, and co-working sectors revived the office realty market.

As we progress through 2025, the real estate momentum hasnt slowed down, but it has become more nuanced. So, is this the right time to enter the market?

Expert View: Timing Depends on Goals

Most real estate advisors agree on one thingtheres no universally perfect time to invest. Instead, the decision should align with your personal goals, budget, and timeline.

If You're Looking for End-Use:

This may be the best time. Property prices are rising steadily, but havent hit unaffordable highs. First-time buyers benefit from more choices, better loan schemes, and greater transparency under RERA regulations.

For buyers planning to live in their property, this is a golden window. Prices are competitive, builders are offering incentives, and theres no rush to sell immediately, says Sandeep Mehta, a Gurgaon-based property consultant.

If You're Investing for Rental Income:

Its a stable period. With the return of professionals to urban centers post-remote work, demand for rentals has gone upespecially in Bengaluru, Pune, and Hyderabad. Rental yields, which hovered around 23% a few years ago, have now improved to 35% in many micro-markets.

Key Reasons Why Investing Now Makes Sense

1. Regulatory Improvements

One of the major drivers for long-term investor confidence in real estate in India has been regulatory reform. The implementation of RERA (Real Estate Regulation and Development Act) has improved accountability among builders, ensured timely delivery, and created a more transparent market.

With state RERA websites listing approved projects, buyers can now verify legal credentials and timelines more easily than ever before.

2. Steady Appreciation in Prime Markets

Cities like Hyderabad, Mumbai, and Bengaluru continue to show consistent capital growth. For example:

• Bengalurus Whitefield area has appreciated by over 12% in the last 24 months.

• Hyderabads Kondapur and Gachibowli neighborhoods are experiencing annual price increases of 1015%.

• Mumbais Thane and Navi Mumbai zones have seen a strong uptick due to infrastructure boosts like metro expansion and the Navi Mumbai International Airport.

These patterns indicate that investors entering now could still see healthy long-term returns.

3. Real Assets in Volatile Times

With equity markets seeing frequent ups and downs, gold prices fluctuating, and cryptocurrencies becoming riskier, real estate in India offers a tangible, inflation-resistant alternative. It also provides diversification in your portfolio, especially for those focused on long-term wealth building.

Potential Challenges to Watch For

Despite the many positives, potential investors should be mindful of certain headwinds.

1. Rising Interest Rates

Although interest rates are still manageable, the Reserve Bank of India has gradually increased repo rates to counter inflation. This can slightly dampen affordability for new borrowers.

Tip: Lock in fixed rates or explore subvention schemes where developers pay part of the EMI for a limited period.

2. Developer Reputation Still Matters

Despite RERA, not all builders deliver as promised. Delays, lack of amenities, and poor construction quality remain concerns in unregulated or semi-urban markets.

Always check:

• Project RERA registration.

• Builders past delivery record.

• Verified reviews from existing customers.

3. Illiquidity of Real Estate

Unlike mutual funds or stocks, real estate is not a liquid asset. If you need to exit the investment quickly, it might take time to find a buyer and complete legal formalities.

Therefore, only invest if your holding capacity is at least 35 years.

Hotspots to Consider in 2025

If youre considering buying property this year, here are a few markets experts are bullish on:

• Pune (Hinjewadi, Baner, Wakad): High rental demand and growing IT ecosystem.

• Hyderabad (Kokapet, Gachibowli): Infrastructure growth and affordable pricing.

• Gurgaon (Dwarka Expressway, Sector 84113): Luxury housing and connectivity to Delhi.

• Bengaluru (Sarjapur Road, Electronic City): Ideal for both end-use and rental income.

• Chennai (Perumbakkam, Pallikaranai): Balanced growth and improving infrastructure.

These regions are backed by upcoming metro lines, highway expansions, or proximity to commercial hubs, making them high-potential zones for both capital appreciation and rental yield.

The Rise of Digital Property Search

Another factor making 2025 a favorable time to invest is the rise of digital-first property discovery. Platforms like Adsblast and other real estate portals allow users to browse properties, connect directly with sellers, and even schedule site visitsall from a mobile device.

This democratization of property access is especially useful for NRIs and investors in Tier II and Tier III cities who want a broader view of market trends and verified listings.

Conclusion: The Time Is RightBut Only If You Are

So, is now the right time to invest in real estate in India? According to experts and current data, the answer leans towards yesbut with conditions.

If you have a long-term outlook, a stable income, and the patience to do due diligence, this is a promising period to invest. Regulatory clarity, improved digital tools, rising rental demand, and infrastructure growth all support the upward trajectory of the Indian real estate market.

But like any investment, it requires planning, location analysis, and risk assessment. Real estate isnt just about buying propertyits about buying smart.