Infrastructure-driven micro-markets emerge as powerhouses in Indian residential real estate: ICRA

October 28, 2025: A new analysis by ICRA Research has identified infrastructure upgrades as the key differentiator for residential real estate performance, with micro-markets like Gurgaon’s Dwarka Expressway leading in sales and launches across India’s top cities. The report, covering data for the period from April 2024 to August 2025, highlights a clear market divergence where Infra connectivity is taking the lead.

The findings reveal that despite a moderation in the broader residential market, micro-markets benefiting from sustained infrastructure developments, such as metro-connected suburbs, expressway corridors, and ring roads, have continued to outperform significantly.

Key highlights from the report include

Most active micro-markets: Gurgaon’s Dwarka Expressway was the most active micro-market in the country, with a sales volume of 23.0 million square feet and a launch volume of 27.8 million square feet, translating to a sales value of ₹43,026 crore. It was closely followed by Gurgaon’s Southern Peripheral Road (SPR) with 20.8 million square feet sold and Thane in MMR with 20.7 million square feet sold. Kokapet in Hyderabad and Hinjewadi in Pune rounded out the top five, demonstrating strong activity in their respective regions.

Markets with high average selling prices (ASP) growth: The report noted significant ASP growth, measured by CAGR, in key micro-markets. Gurgaon’s SPR led with a remarkable 33% growth, followed by Dwarka Expressway at 25%. Other markets like Hinjewadi in Pune also showed strong growth at 11%. It is important to note that this ASP growth is also driven by a change in product mix (Luxury, Mid and Affordable) and is not always a direct reflection of property price appreciation.

Key markets in mid and luxury segments: The composition of housing segments has shifted notably, characterised by a declining share of affordable housing and a rise in the share of mid and luxury housing in overall launches. Thane in MMR, Siddhartha Vihar in Ghaziabad and Yamuna Expressway in Greater Noida are the most active micro-markets in the mid segment, while Dwarka Expressway and SPR in Gurgaon and Worli in MMR are the most active ones in the luxury segment.

Emerging/potential micro-markets: Thane (MMR), Yamuna Expressway (Delhi NCR), Devanahalli (Bengaluru) and Tellapur (Hyderabad) are expected to be among the key emerging residential micro-markets.

Future outlook

Infrastructure developments pertaining to upcoming airports, proposed metro lines, road upgrades, and commercial real estate are expected to continue driving this trend, resulting in new residential hotspots across the country.

Top 5 most active micro-markets based on area sold (Apr’24 – Aug’25)

ASP growth (CAGR) in the most active micro-markets in terms of area sold

*ASP growth is also driven by change in product mix (Luxury, Mid and Affordable). ASP growth is not always a reflection of property price appreciation