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With high tariff rates and a stock market switch from Bullish to Bearish, investors are eyeing real estate for safe returns. Anupam Rastogi, the co-founder and Chief Business Officer of Square Yards, says people will soon demand more residential housing investments with an “optimistic-yet-cautious stance.” |
Volatile global markets and the recent tariff announcements by US President Donald Trump have significantly impacted investment returns for FIIs. Considering these factors, many exited the Indian market between October 2024 and March 2025, offloading ₹2.16 Lakh Crores. As a result, people have started to invest their money in a steady and more lucrative option—real estate.
Anupam Rastogi, Co-founder and Chief Business Officer of Square Yards, noted that many investors have been “looking at real estate as an attractive asset class.” However, the ANAROCK data has also shown that housing sales dropped 11.5% in Q1 of 2025 in the top 7 towns. This indicates a decline in housing sales from 1,02,083 units in Q4 2024 to 90,330 units.
Housing Prices Rise 10–34% Despite an 11.5% Drop in Sales
Rastogi commented, “However, ongoing economic and geopolitical uncertainties have made investors adopt an optimistic yet cautious stance.” This has increased the average residential property prices by 10 to 34% in the top 7 cities in Q1 compared to the previous year. Of those towns, Delhi NCR and Bangalore had the highest inflation jumps of 34% and 20%, respectively.
Anupam Rastogi remarked, “Going forward, residential demand is expected to grow in a range, particularly in key localities, supported by end-user and investor interest, long-term investment planning, and desire for diversification.” Market analysts recommend that investors take a selective approach when allocating capital across different investment options.
This change in investment appears well-timed considering the current state of the economy. The Indian economy expanded by 6.2% in Q4 2024, 3.3% less than last year. Projections indicate that Q4 2025 will experience the slowest growth in four years, with an anticipated rate of only 5.95%.
Read more through the links below to uncover the key trends and market leaders driving this growth:
Business Today: https://bit.ly/4342D9J
Published Date: 27 Apr, 2025
