New Delhi— India’s residential real estate market has witnessed a strong post-pandemic recovery, with total residential sales across major cities rising by nearly 77% between FY2019 and FY2025, according to a report released Wednesday by Grant Thornton Bharat.
The report highlights a significant shift in transaction patterns. Primary sales—homes sold directly by developers—accounted for 57% of total residential transactions in FY2025, while secondary (resale) transactions made up 43%. This marks a notable rise in secondary sales, which held just a 38% share in FY2019.
Luxury housing, defined as properties priced above ₹1 crore, also saw a major upswing over the six-year period, fueled by rising disposable incomes, evolving lifestyle preferences, and focused marketing by developers.
The commercial real estate sector showed similar momentum, with office leasing reaching record highs in FY2025. Demand was driven by global capability centers (GCCs), IT/ITES firms, e-commerce, and a growing appetite for flexible workspaces—particularly in Tier 1 cities and emerging Tier 2 hubs. The report noted strong absorption levels and positive rental growth across India’s office market.
India’s logistics and warehousing sector also continued to expand, supported by initiatives such as the ‘Make in India’ campaign, GST implementation, and the National Logistics Policy.
The report documented 99 real estate deals valued at $6.99 billion in FY2024–25. Private equity investments led the charge with $3.15 billion, while nearly $3 billion was raised through public markets via IPOs and qualified institutional placements (QIPs).
Emerging technologies like AI, blockchain, smart buildings, and green construction are transforming the way real estate assets are developed and managed. Innovations such as real estate tokenization and SM-REITs (Small and Medium Real Estate Investment Trusts) are gaining traction as alternative investment vehicles.
Looking ahead, the report forecasts continued growth in premium housing, commercial offices, logistics infrastructure, and alternative investments—driven by urban decentralization, investor interest, and digital innovation.
“India’s real estate story is being rewritten—digitally, sustainably, and inclusively. The future is decentralised, tech-enabled, and investor-friendly,” the Grant Thornton Bharat leadership team said in a statement.
The report underscores a robust outlook for the sector, backed by strong investor interest, the rise of new asset classes, and increasing emphasis on technology and sustainability. (Source: IANS)
