Market Radar India: Premium Homes, Global Hubs, and a Nuclear Pivot

Luxury housing scales new heights, GCCs drive office demand, and a historic bill opens nuclear energy to private players

December 16, 2025Real Estate

Key Takeaways

The Indian economy presents a striking wealth paradox, where record luxury real estate sales suggest a booming growth environment, yet flat power demand raises the question of whether high-end consumer confidence is masking industrial softness.
Global Capability Centres have decisively evolved from cost-saving back offices into high-value R&D engines, now driving 44% of commercial leasing and fueling a surge in demand for green, tech-enabled workspaces.
Strategic shifts in lifestyle and policy are reshaping investment, as wealthy buyers prioritise clean air locations for second homes while the historic SHANTI Bill opens India's nuclear energy sector to private participation for the first time.

The Macro View

While global markets navigate trade wars and economic headwinds, India’s domestic story remains strikingly resilient, particularly in real estate.

The sector, valued at USD 300 billion, is defying fears of saturation. Premium housing - classified as properties priced above INR 10 million - now constitutes 51% of all residential sales in the top eight metros, up from 45% last year.

In Mumbai, prices for premium apartments are now rivalling parts of New York, postponing fears of a market correction to at least 2026.

However, this wealth effect clashes with a critical industrial metric. While the property market suggests a booming 7-8% GDP growth environment, power demand - typically the engine of that growth - has unexpectedly flatlined, rising barely 1% this fiscal year.

Analysts are trying to determine if this discrepancy is merely due to a cooler summer and higher energy efficiency, or if it signals an underlying weakness in industrial activity that the property boom is masking.

Trend Spotlight

The commercial real estate sector is witnessing a structural shift driven by Global Capability Centres (GCCs), which are no longer just back-office support units but global innovation hubs.

In 2024, GCCs absorbed a record 33 million square feet of office space, accounting for 44% of India’s total commercial leasing. Savills India projects this will expand to 180 million square feet between 2025 and 2030.

The focus has shifted from simple arbitrage to high-value R&D in Generative AI, semiconductors, and life sciences. Consequently, GCC roles now command a 12-20% compensation premium over traditional IT services.

PropTech is transforming this square footage into "smart footage". With Grade-A offices now demanding higher sustainability standards, 80-90% of new supply by 2026 is expected to be green certified.

Supporting this agility, flexible workspace inventory is set to cross 100 million square feet by 2027, with Bangalore currently holding 31% of the country's flex stock.

Sector Watch

The Clean Air Luxury Shift

The definition of luxury is evolving from opulence to well-being. Wealthy buyers are increasingly purchasing second homes in low-density locations like Goa, Alibaug, and the Nilgiris, driven primarily by a desire for clean air and open land.

These are no longer just holiday retreats but seasonal living solutions for long stays during peak pollution months in metros.

A Watershed Moment for Nuclear Power

In a historic policy pivot, the government has introduced the SHANTI Bill (Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India).

The bill proposes opening atomic power to private players and protecting equipment suppliers from liability, aiming to boost nuclear capacity from less than 2% today to a significant share of the energy mix.

This move is critical for India’s decarbonisation and energy security, balancing the phasing down of coal with reliable baseload power.

Family Offices Powering Growth

Often overlooked, India’s family businesses are aggressive growth drivers. 63% achieved double-digit revenue growth in 2024, with nearly 80% projecting similar results for 2025, according to Deloitte.

They are also surprisingly tech-forward, with 53% already utilising artificial intelligence in operations - ahead of global averages.