Indian Real Estate Enters New Growth Phase Driven by Infrastructure and End-User Demand
The Indian real estate sector is witnessing a transformative phase, characterized by robust infrastructure development and a surge in end-user demand. According to Prashant Sharma, President of NAREDCO Maharashtra, 2025 marked a pivotal year for the industry, setting the stage for sustained growth in 2026 and beyond.
The 13th edition of Excon 2025, South Asia’s largest construction equipment exhibition, concluded on a high note at the Bangalore International Exhibition Centre (BIEC). Organized by the Confederation of Indian Industry (CII), the five-day event brought together policymakers, manufacturers, contractors, financiers, technology providers, and global stakeholders. Spread across an expansive 3.5 million sq ft, Excon 2025 hosted over 1,200 exhibitors and 100,000 visitors, reaffirming its stature as a global platform shaping the future of India’s infrastructure and construction ecosystem.
One of the key highlights of 2025 was the record-setting auction of a railway land parcel at Mahalaxmi in south Mumbai. The Railway Land Development Authority (RLDA) received a bid of Rs 22.50 billion for the 2.67-acre plot, setting a new benchmark for long-term lease auctions in the city’s real estate market. The land, with a permissible floor space index (FSI) of 4.05, offers one of the most attractive redevelopment opportunities in a prime urban location. The reserve price for the plot was Rs 9.93 billion, underscoring the high demand for prime real estate in Mumbai.
In another significant development, the Centre has identified 14 national waterways in Maharashtra, of which seven have been deemed feasible for development. These waterways, with a combined navigable length of 662.97 km, are expected to bolster inland water transport infrastructure in the state. The waterways cleared for development include National Waterway (NW)-4 on the River Godavari, NW-11 on the Arunavati–Aran rivers, NW-28 covering Dabhol Creek and the Vashishti River, and NW-53 spanning the Kalyan–Thane–Mumbai waterway. These developments are expected to enhance connectivity and reduce transportation costs, further boosting the real estate and infrastructure sectors.
The focus on sustainable and green buildings is also gaining momentum. The Indian Green Building Council (IGBC) has been instrumental in promoting sustainable practices, and an increasing number of developers are adopting green building standards. This shift is not only driven by environmental concerns but also by the growing demand from consumers for eco-friendly and energy-efficient homes.
In addition to these developments, the Indian government’s push for affordable housing and the Pradhan Mantri Awas Yojana (PMAY) has been instrumental in driving demand in the residential sector. The scheme aims to provide affordable housing to all by 2022, and the government’s efforts have resulted in a significant increase in the number of affordable housing units being developed across the country.
The commercial real estate sector is also showing signs of recovery, with a gradual increase in demand for office spaces and retail properties. The shift towards hybrid work models has led to a reevaluation of office space requirements, with many companies opting for flexible and co-working spaces. This trend is expected to continue in the coming years, driven by the need for cost-effective and agile work environments.
Overall, the Indian real estate sector is poised for a strong growth trajectory, driven by a combination of robust infrastructure development, increasing end-user demand, and a focus on sustainability. The year 2026 is expected to be a pivotal year for the industry, with further investments and developments on the horizon.
