Navin Dhanuka, Director, ArisUnitern
Which regions or micro-markets do you see emerging as strong residential hotspots in 2025, and what factors are driving this growth?
We expect growth to be driven by micro-markets that combine strong infrastructure pipelines with increasing liveability. In Bengaluru, areas along the ORR–Sarjapur belt and North Bengaluru near the airport continue to attract both end-users and investors, due to upcoming metro connectivity, global business hubs, and improved social infrastructure. Similarly, in the NCR, peripheral regions like Dwarka Expressway and Noida’s emerging sectors are gaining traction with large-scale township developments and better expressway linkages. Hyderabad’s western corridor, particularly the Financial District and Kokapet, remains robust owing to IT-driven demand.
The common thread across these hotspots is a combination of improved connectivity, employment hubs, and lifestyle-oriented residential options. Homebuyers today not only view homes as assets, but also as comprehensive environments that provide access to education, healthcare, and recreation. Developers, in turn, are responding with integrated townships and sustainable communities—further accelerating the next wave of residential expansion.
How are infrastructure projects (such as new expressways, metro lines, or airports) influencing demand in these areas?
Infrastructure has become the single most decisive factor driving residential demand. The announcement of a new expressway, metro corridor, or airport expansion often triggers a surge of interest from both homebuyers and investors. For example, Bengaluru’s upcoming metro lines and the proposal for a second airport in the south are opening up demand in micro-markets that were previously considered peripheral. Likewise, in NCR, the Dwarka Expressway has turned what was once a speculative zone into one of the region’s most sought-after residential corridors.
By cutting commute times and strengthening connectivity to major employment hubs, infrastructure projects do more than improve convenience — they build long-term confidence in a location’s growth potential. Today’s buyers are increasingly forward-looking, basing decisions not just on existing facilities but on the visibility of future infrastructure. This mindset is driving sustained absorption and steady price appreciation across well-connected corridors.
Are we seeing price corrections or continued upward momentum in Tier-1 cities, and how do Tier-2/3 markets compare?
In Tier-1 cities, we are witnessing upward momentum rather than price corrections. Strong end-user demand, coupled with limited supply in prime micro-markets, is keeping values firm and in many cases driving steady
appreciation. Developers have also been cautious in new launches, which has ensured that demand and supply dynamics remain balanced.
Additionally, Tier 2 and Tier 3 markets reveal a different but equally significant trend. With better infrastructure, enhanced connectivity, and an expanding base of local industries, many of these cities are experiencing healthy absorption at more accessible price points. Although the growth pattern here is more gradual than in metropolitan areas, it is also more stable and sustainable, making it appealing for long-term investors and first-time homebuyers alike.
What role are demand-supply dynamics, financing trends, and construction costs playing in shaping price trajectories?
Price trajectories today are influenced by a complex interaction of demand, supply, financing, and construction costs. On the demand side, homeownership sentiment remains robust, especially in Tier-1 cities, where aspirational and end-user demand continues to surpass new supply in key areas.
On the financing front, stable interest rates and wider access to home loans have supported affordability, allowing buyers to absorb moderate price increases without dampening sentiment. At the same time, elevated construction costs—driven by raw material prices, labour, and compliance requirements—are pushing developers to pass on part of the burden to consumers.
The combined effect is a measured but consistent upward price trend rather than sharp volatility. Premium, well-connected micro-markets are witnessing stronger appreciation, while mid-segment and peripheral areas are showing more stable, gradual movement.
How have recent government initiatives or policy changes (e.g., GST reforms, RERA updates, affordable housing incentives) impacted the residential market?
Government initiatives over recent years have significantly contributed to creating a more transparent and resilient residential market. RERA has been transformative,strengthening buyer confidence by enforcing accountability, timely delivery, and greater disclosure.
GST reforms have enhanced clarity around taxation, simplifying the purchasing process, even if affordability at certain price points remains a topic of debate.
Affordable housing incentives, including interest subsidies and tax benefits, have broadened the buyer base in mid-income and emerging markets, laying a strong foundation for end-user-driven growth. Government initiatives in recent years have
Developers are also aligning with this approach by prioritising compliance, transparency, and long-term value creation.
6. In your view, what additional policy support is required to sustain growth in the residential segment?
To sustain growth in the residential segment, we see two policy priorities as critical. First, enabling developers to claim GST input credit would ease cost pressures and, in turn, translate into more competitive pricing for homebuyers. Second, stronger incentives for sustainable housing — through tax breaks, concessional financing— can accelerate the adoption of eco-friendly communities, ensuring growth that is both inclusive and future-ready.
7. How is PropTech transforming the way homebuyers and developers interact with real estate, and what role do you see technology playing in improving transparency and efficiency in the sector?
PropTech has moved from being a support tool to becoming the backbone of real estate. For homebuyers, it enables virtual tours, AI-driven recommendations, and seamless digital documentation. For developers, it streamlines sales, enhances customer engagement, and improves post-possession services. Most importantly, PropTech is driving transparency by creating integrated ecosystems where discovery, financing, buying, and management come together — making the sector more efficient, credible, and future-ready.