India's Real Estate Sector Enters FY26 with Rs. 60,415 Crore in Transactions
India's real estate sector demonstrated strong resilience in FY25, recording Rs. 60,415 crore in transactions. The sector is poised for sustainable growth in FY26, driven by structural reforms, urbanisation, and technological advancements.
Real EstateTransactionsIndiaGrowthTechnologyReal Estate NewsJun 19, 2025
Mergers and acquisitions increased to 36 transactions valued at Rs. 5,350 crore (US$ 619 million), reflecting a focus on mid-sized consolidations and platform-driven acquisitions. Public markets were also buoyant, with initial public offerings (IPOs) and qualified institutional placements (QIPs) raising Rs. 25,843 crore (US$ 2.99 billion), driven by institutional interest in Grade A commercial, warehousing, and retail assets.
Residential sales in major cities surged by nearly 77% between FY19 and FY25, signalling renewed buyer confidence, with primary transactions comprising 57% of the market in FY25. Although affordable housing sales declined by 9% in Q1 FY25, unsold inventory fell by 19%, indicating robust absorption amid a shift towards premium housing. Office leasing witnessed a sharp recovery, led by demand from global capability centres, Information technology (IT)/IT-enabled services, e-commerce, and flexible workspace firms, especially in tier one and emerging tier two cities.
Emerging trends include investor preference for Grade A, Environmental, Social, and Governance (ESG) compliant assets and increased adoption of artificial intelligence, blockchain, and the Internet of Things, which are transforming development and leasing. Despite challenges such as affordability and regulatory delays, India’s real estate sector is well-positioned for sustainable, inclusive, and technology-driven growth in FY26.
The real estate sector in India has been a significant contributor to the country's economic growth, and the recent trends indicate a positive outlook. The government's initiatives, such as the Real Estate (Regulation and Development) Act (RERA) and the Pradhan Mantri Awas Yojana (PMAY), have played a crucial role in enhancing transparency and consumer confidence in the market. These reforms, coupled with technological advancements, are expected to drive further growth and innovation in the sector.
Frequently Asked Questions
What were the key drivers of the real estate sector's resilience in FY25?
The key drivers of the real estate sector's resilience in FY25 were structural reforms, rapid urbanisation, and shifting consumer preferences. Private equity investments, mergers and acquisitions, and robust public market activities also contributed significantly.
How did residential sales perform in major cities between FY19 and FY25?
Residential sales in major cities surged by nearly 77% between FY19 and FY25, indicating a strong recovery and renewed buyer confidence in the market.
What trends are emerging in the real estate sector?
Emerging trends in the real estate sector include a preference for Grade A, ESG-compliant assets, and increased adoption of technologies such as artificial intelligence, blockchain, and the Internet of Things.
What challenges does the real estate sector face in India?
The real estate sector in India faces challenges such as affordability issues and regulatory delays, which can impact the market's overall performance and growth.
What is the outlook for the real estate sector in FY26?
The outlook for the real estate sector in FY26 is positive, with the sector well-positioned for sustainable, inclusive, and technology-driven growth, driven by ongoing reforms and technological advancements.
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