Demand Continuity Fuels Growth in Indian Real Estate: Report
A strong launch pipeline by major and mid-sized developers in India highlights confidence in demand continuity, driving growth in the real estate sector.
Real EstateDemand ContinuityBusiness DevelopmentLand DealsPresalesReal EstateJul 10, 2025
While real estate companies in the residential segment have reported a mixed bag of operational performances in Q1 FY26, many listed companies (large and mid-sized) have made significant progress in business development, according to the report by Emkay Global Financial Services.
This progress is mainly due to a strong set of launches, supported by healthy demand. Since demand remains robust, companies have maintained their full-year guidance, as they step up launches ahead.
On the back of healthy footfalls at project sites and continued traction for newly launched projects in the sector, Emkay Global Financial Services expects prudent real estate companies to largely meet their FY26 pre-sales guidance, the report mentioned.
According to a recent Anarock report, the value of land deals (top eight cities + tier 2 and 3 cities) at Rs 309 billion in H1 CY25 is already 5 per cent higher than total transactions seen in CY24.
The total size of land transactions during this period was 2,898 acres, which is 15 per cent higher than that seen in CY24. Of these, 782 acres have been earmarked for Joint Development Agreements (JDAs). The development potential of the transacted land in H1 CY25 is 233 million square feet, the report said, adding that as developers scout for growth opportunities, we expect the momentum of land acquisitions to continue ahead.
While pre-sales performance has been mixed, a consistent and positive trend of a sharp surge in new business development is seen in the real estate sector.
On the flip side, Lodha, Sobha, and Signature Global reported muted performances, either due to a high base or fewer launches during the quarter, said the report.
Frequently Asked Questions
What is driving the growth in the Indian real estate sector?
A strong launch pipeline by large and mid-sized developers, supported by healthy demand, is driving growth in the Indian real estate sector.
What does the Emkay Global Financial Services report predict for FY26?
The report predicts that prudent real estate companies will largely meet their FY26 pre-sales guidance, backed by healthy footfalls and traction for newly launched projects.
What is the value of land deals in H1 CY25, and how does it compare to CY24?
The value of land deals in H1 CY25 is Rs 309 billion, which is 5 per cent higher than the total transactions seen in CY24.
How much land has been earmarked for Joint Development Agreements (JDAs)?
782 acres of the total 2,898 acres of land transactions in H1 CY25 have been earmarked for JDAs.
Which companies reported muted performances in Q1 FY26, and why?
Lodha, Sobha, and Signature Global reported muted performances in Q1 FY26, either due to a high base or fewer launches during the quarter.
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