Indian Real Estate Experiences Steady Growth in 2025 on Robust Housing Demand and Firm Prices
By Mr. Gaurav Pandey, MD & CEO, Godrej Properties Ltd.
Chandigarh, Dec 29: 2025 was a year of sustained growth for Indian real estate, driven by strong housing absorption, firm pricing, and the delivery of major infrastructure projects across key metros. The year saw a remarkable increase in demand, primarily fueled by end-user needs, supported by rising incomes and the creation of formal jobs. This trend has been further bolstered by the increasing preference for branded developers, who offer greater transparency and execution certainty.
The real estate market in India has seen a significant shift towards genuine homeownership, moving away from speculative investments. This shift is crucial for the long-term health and stability of the sector. The consolidation of the market, with smaller players being overshadowed by larger, more reputable developers, has also played a key role in this transformation. Larger developers have been able to capitalize on their brand reputation and deliver high-quality projects on time, which has further enhanced consumer confidence.
As we step into 2026, the sector is poised for stable, broad-based growth, underpinned by disciplined supply and a healthier demand–inventory balance. The completion of multiple infrastructure projects, such as highways, metro rail systems, and urban development initiatives, has significantly improved the quality of life in key metropolitan areas. These improvements have, in turn, driven urban employment, making cities more attractive places to live and work.
The Indian real estate sector has also benefited from favorable government policies and initiatives aimed at promoting housing for all. Programs like the Pradhan Mantri Awas Yojana (PMAY) have played a crucial role in ensuring that affordable housing is available to a broader segment of the population. This has not only addressed the housing needs of the economically weaker sections but has also contributed to the overall growth of the real estate market.
In addition to these factors, the sector has seen a rise in technological advancements that have streamlined processes and improved efficiency. The adoption of digital tools and platforms for property listings, transactions, and customer engagement has made the buying and selling process more transparent and convenient for consumers. This digital transformation is expected to continue and further enhance the sector's performance in the coming years.
However, the sector is not without its challenges. Rising input costs, particularly in building materials, and regulatory compliance issues remain areas of concern. Developers are working closely with policymakers to address these issues and ensure that the sector can continue to grow sustainably.
In conclusion, 2025 was a year of significant progress for the Indian real estate sector, and the outlook for 2026 is optimistic. With a focus on genuine homeownership, robust infrastructure, and technological advancements, the sector is well-positioned to maintain its momentum and deliver value to both developers and consumers.
