7 Factors That Don’t Support Real Estate Crash Theory in India 2025
India Real Estate 2025: 7 Factors That Don’t Support Real Estate Crash Theory
Nowadays in India, multiple videos, reels, and podcasts are going viral featuring so-called experts claiming that a real estate crash is coming in 2025. These so-called experts rarely back their claims with facts or data — instead, they rant. Unfortunately, many people blindly trust them. What happens next? These "experts" funnel viewers into buying overpriced courses filled with the most useless knowledge a person could absorb.
Let’s be real: real estate is an imperishable asset, available in very limited quantity, while the population is increasing rapidly. So, investing in an assest which supports demand, can never be worthless for investment.
Even throughout history, all wars, conflicts, and revolts — past, present, or future — revolve around land and property. Have you ever seen armies or people fighting over Parle-G, a PS5, bikes, cars, or even high-value assets like gold or shares? Definitely not.
Just imagine — an asset whose value is powerful enough to trigger wars. How can that be not worth investing?
In today's blog, we’ll dive into why real estate should be your top investment choice over every other option available. We’ll also explore 7 key factors that make Indian real estate stronger and more impactful than ever.
Why Real Estate is King of Investment Options?
Why does a person invest? To earn and generate lasting wealth. And in the process of building that wealth, they also seek security for their investment.
Now, for a moment, let’s assume that stocks, gold, Bitcoin, or any other asset class are the best investment options—and you put your money into them.
But think about it: if any of these lose their value, what do you have left—physically? Except for gold, none of these assets are tangible. And even gold, if it were to lose its value, becomes practically useless as an investment. So, if these assets don’t appreciate, you're stuck—and your money is at risk.
Now compare that to land or property. Real estate almost always appreciates—maybe slowly at times, sometimes rapidly, but depreciation is rare and usually happens under extreme or very specific circumstances. Even in the rare case that property values fall, you still own the physical asset. You can live in it, rent it out, or use it for commercial purposes to generate income.
And when the market bounces back—and it usually does—you’re in a position to sell at a profit. It’s not just about appreciation; it’s about utility and ownership. Real estate is a limited asset, and with a growing population, demand is only rising. Property rarely loses value over the long term. It's the only asset that can generate stable wealth with minimal risk. Even if it temporarily devalues, you still have a physical, income-generating resource.
Now, let’s assess why there will be no real estate downturn in India, especially not one that lasts over the long term.
Why Indian Real Estate will not got go down in 2025 or within the Upcoming Decade?
Housing Shortage: As per a report published, Indian is facing a 10-15 million housing shortage in urban areas currently which can be surged if we add up rural too. One more report of Economic Times shows that India would have 31.2 million housing shortage by 2030, which is offourse an estimate and would have higher in reality. The total value of this deficit if approx. 803 billion dollars which shows how demanding real estate would be in upcoming years.
NRIs Significant Investment: NRIs are investing immensely in Indian real etsate and it has become more frequent due to devaluation of rupees against dollars. An article posted on the Mint shows that in 2019-20, total NRIs investment in indian real estate was 10 percent of total investment in real estate. Which reached approx. 15 percent in 2024 and expected to touch 20 percent in 2025. This significant boost in NRIs investment in real estate is also influencing demand and appreciation.
Rapid Urbanization: Indian is significantly developing and urbanizing areas which has been in shadow for years. New smart cities like Gift City in Gujarat, Dholera Smart City, ITGN in Greater Noida, Yamuna Expressway smart city planning etc, are causing a rapid boost in urban areas, also villages are now witnessing huge developments. Now, due to rapid developments and increasing infrastructure, prices are appreciating rapidly.
Demand For luxury real estate: Demand for luxury real estate in india is also increasing. An article posted in The Business Standard shows that 4 crores luxury accommodation has been sold in 2024, which constitutes 53 percent rise from previous years. In 2025, the demand is expected to touch sky-high, due to the luxury real estate demand and upper middle class infusing more money to afford a more comfortable accommodation is also becoming a appreciation driving factor in india.
Increasing startups and businesses in India: After the Digital India and Startup India initiatives, the number of DPIIT-recognised startups has grown from around 500 in 2016 to 159,157 as of January 15, 2025, also multiple MNCs like Amazon, Apple, Microsoft, etc., are also opening their operation in multiple cities, this increase in number of business have boosted the demand for commercial spaces in India, which indirectly boosted the demand for real estate as whole, and appreciation in property rates.
RBI support: In this rising demand RBI has also backed the country’s people by reducing their REPO rate (interest rates charges by RBI to bank) two times recently by 25 and 25 basic points which reduced the repo from 6.5 percent to 6 percent which will also cut down the interest rates on home loan, making home loan more affordable and demand surge in real estate.
Government Policies: Government Policies like PMAY (Pradhan Mantri Aawas Yojna), DDA housing scheme, EWS homes etc, have also contributed in the demand. Government under this scheme support people financially to built their home or help them to get loan from reduced interest rates from banks. It also contributes in the demand in large number due to being backed by the government, it plays a vital role in housing demand boost.
Real estate in India is not going to crash in 2025 or anytime soon. With a rising population, strong demand, support from the government, NRI investments, and fast development of cities, real estate is only going to grow. Don’t trust fake experts on social media who have no proof. Real estate is a real, solid asset that gives long-term wealth and security. Invest wisely, wait patiently, and enjoy great returns. For Noida real estate, call us at 7053707070.
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