India's Real Estate Outlook: 2025 Reset and 2026 Trends

India’s real estate market showed notable resilience in 2025, supported by steady end-user demand, policy support, and improving infrastructure. While global and domestic macroeconomic headwinds persisted, housing demand across key markets remained intact, signaling a shift from cyclical recovery to fundamentals-led growth.

Ramani Sastri, Chairman & MD of Sterling Developers, said the sector benefited from rising aspirations and supportive government measures, including recent rate cuts that helped strengthen buyer confidence.

He noted that homeownership sentiment remains strong, particularly among millennials and Gen Z, who are upgrading to larger and more luxurious homes as incomes rise and lifestyle expectations evolve.

Venket Rao, Founder & Managing Partner at Intygrat Law, said 2025 provided a more stable operating environment for real estate, supported by the Reserve Bank of India’s steady repo-rate stance, which helped both developers and homebuyers plan long-term.

He added that ongoing labour law reforms and improvements in digital land governance are strengthening compliance, workforce efficiency, and predictability in project execution, reinforcing real estate’s role in India’s broader urban and economic transformation.

Residential real estate remains a long-term wealth play

Several developers observed that buyers view residential real estate as a long-term investment rather than a speculative trade.

Rishi Raj, CEO of Conscient Infrastructure, said Delhi NCR’s residential market reflected maturity in 2025, with Gurgaon leading the transformation. After delivering an average 8–10% CAGR over the past decade, value creation is now becoming more selective and driven by fundamentals such as governance quality, design excellence, and micro-market choice.

Ashish Jerath, President – Sales & Marketing at Smartworld Developers, echoed this view, noting that 2025 marked a decisive shift toward end-user–driven demand.

Buyers in the premium segment are prioritizing credibility, product durability, and developer track record, while branded residences aligned with global benchmarks are gaining traction among high-net-worth individuals.

Luxury housing shifts focus from size to experience

Luxury housing in 2025 moved beyond just size or pricing. Harsh Jagwani, Managing Director at Notandas Realty, said buyers are now far more focused on the overall living experience—ranging from location quality and privacy to how a building functions post-handover. In markets like Mumbai’s Bandra, Juhu, and Santacruz, limited supply and redevelopment-led projects continued to see steady demand.

Amar Sarin, CEO & MD of TARC Ltd, described the trend as structural rather than cyclical. According to him, buyers in Delhi and Gurgaon are increasingly choosing well-planned luxury residences that integrate wellness, technology, and environmental responsibility.

He expects demand to remain firm in 2026, particularly in well-connected neighbourhoods with limited high-quality supply.

Wellness, sustainability, and design become central

Wellness-oriented living emerged as a defining theme in 2025. Abhishek Trehan, Executive Director at Trehan Iris, pointed out that luxury home sales in NCR grew steadily in the first half of the year, with Gurugram accounting for the bulk of high-end transactions.

Buyers, he said, are placing health and environmental quality ahead of price, seeking green spaces, fitness infrastructure, and holistic living environments.

Ankush Kaul, President – Sales, Marketing & CRM at Central Park, added that luxury housing is increasingly shaped by planning quality, environmental performance, and service-led living. According to him, thoughtfully designed, exclusive communities are better positioned to deliver long-term liveability and asset value.

Regional diversification gains momentum

Beyond metro markets, lifestyle-led destinations are drawing investor interest. Bharat Thakran, CMD of GHD Group, said Goa is fast evolving from a holiday market into a first-home and retirement destination, driven by remote working, limited land availability, and strong rental yields.

He noted that demand from affluent buyers and NRIs has doubled over the past two years, reflecting a non-speculative, end-use-driven market.

In southern India, Bengaluru continued to outperform. Sarada Reddy, Co-founder and Chief Experience Officer at Trifecta Projects, said East Bengaluru remained resilient due to metro expansion and a strong social ecosystem, while North Bengaluru is emerging as a long-term growth corridor supported by airport-led infrastructure.

Commercial real estate and flexible workspaces expand

Commercial real estate also posted strong growth in 2025. Ashish Sharma, AVP Operations at Brahma Group, said NCR’s office leasing rose sharply in the first half of the year, led by demand for Grade A, technology-enabled, and sustainable office spaces, with Gurugram contributing a majority of the absorption.

Manas Mehrotra, Founder of 315Work Avenue, said coworking spaces have moved from being an alternative to becoming a core part of corporate real estate strategy. He attributed rising demand to hybrid work models, employee-centric workplace design, and the expansion of Global Capability Centers, with flexible offices gaining traction in tier-2 and tier-3 cities as well.

Outlook for 2026: Stability over speed

Looking ahead, developers expect 2026 to be a year of consolidation rather than rapid acceleration. Mahendra Nagaraj, Vice President at M5 Mahendra Group, said lower input costs following GST rationalisation and continued policy support should strengthen affordability and execution momentum.

Ashish Agarwal, Director at AU Real Estate, cautioned that rising prices could pose challenges for aspirational buyers, making transparent pricing and value-driven design increasingly important. According to him, true luxury is shifting toward smart layouts, usability, and everyday comfort rather than just premium finishes.

Parvinder Singh, CEO of Trident Realty, expects luxury housing demand to expand beyond metros into emerging growth corridors, driven by buyers seeking smart technology, sustainability, and long-term security.