India's Real Estate Market Booms with 77% Increase in Housing Sales Over 7 Years
Sales up, luxury living rising, and $6.99 billion in deals, India's real estate market is evolving rapidly with technology, green trends, and growing investor interest.
Real EstateHousing SalesLuxury HomesGreen TrendsTechnologyReal Estate NewsJun 18, 2025
According to the report, the industry is transforming rapidly through technology, sustainability imperatives, and evolving buyer behaviour. “Backed by investor confidence and adaptive consumer behavior, it remains a key economic pillar, set for continued momentum in FY26,” highlighted by the report, “driven by urbanisation, infrastructure growth, and technology integration,” it added.
Despite affordability concerns, the residential market has remained resilient. From FY19 to FY25, residential sales in key cities rose nearly 77 per cent, with under-construction homes making up 57 per cent of transactions in FY25, the report noted. Affordable housing showed mixed performance, with a nine per cent dip in sales during Q1 of 2025 calendar year. However, inventory levels dropped by 19 per cent, suggesting a gradual recovery. Meanwhile, demand for luxury homes above Rs 1 crore saw a strong uptick, driven by rising incomes and lifestyle shifts.
Investment flows in FY25 reflected a clear pivot towards operational residential developments, income-yielding commercial properties, and logistics platforms, the report stated. India recorded 99 real estate deals worth $6.99 billion during FY25, with private equity accounting for nearly half at $3.15 billion. Public market activity, including IPOs and qualified institutional placements (QIPs), contributed $2.99 billion, showing capital market confidence in the sector.
Advanced technologies like blockchain, AI, and Internet of Things (IoT) are transforming property buying and selling, with virtual reality and smart homes becoming standard. “Tokenisation of real estate can democratise access and improve liquidity if supported by regulation,” the report added. Sustainability is now a central theme. ESG-compliant projects are preferred by both institutional investors and end-users. “We’re seeing growing demand for green-certified, wellness-centric housing,” the report said.
Cities like Bhubaneswar, Nagpur, and Jaipur are emerging as residential hubs due to government-led infrastructure pushes and growing job markets. Co-living and rental housing are gaining popularity among younger, mobile professionals, backed by policy initiatives such as the Model Tenancy Act. “Sustainable design, technology integration and backward-linked operations are key to scaling and delivering value,” Jagadish Nangineni, managing director of Sobha Group, was quoted as saying in the report. Sobha recently achieved Net Water Zero certification for its project in Thrissur.
Looking ahead, the report forecasts continued traction in REITs, including the rise of Small and Medium REITs (SM REITs), more platform-level consolidations, and deeper tech integration. “Despite affordability challenges and global volatility, India’s real estate sector is well-positioned to grow sustainably,” said Shabala Shinde, partner and real estate industry leader at Grant Thornton Bharat.
Frequently Asked Questions
What is the percentage increase in residential sales from FY19 to FY25?
Residential sales in key cities rose nearly 77 per cent from FY19 to FY25.
What are the key drivers of the real estate market in India?
Key drivers include structural reforms, rapid urbanisation, and increasing investor interest, both domestic and global.
How much did India's real estate deals amount to in FY25?
India recorded 99 real estate deals worth $6.99 billion during FY25.
What is the role of technology in the real estate sector?
Advanced technologies like blockchain, AI, and Internet of Things (IoT) are transforming property buying and selling, with virtual reality and smart homes becoming standard.
What is the forecast for the real estate sector in FY26?
The report forecasts continued traction in REITs, including the rise of Small and Medium REITs (SM REITs), more platform-level consolidations, and deeper tech integration.
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