India's Real Estate Sector Thrives in 2025: Office, Housing, and Warehousing Demand Soars
India's real estate sector has continued its upward trajectory in 2025, supported by strong economic growth, steady consumption, and government policies, according to a Colliers report. The study highlights that despite global trade issues slowing supply chains, easing inflation, better credit flow, and lower lending rates have kept buyers active across all real estate categories.
The report notes that the office, housing, and industrial segments have recorded sustained demand throughout the year. Companies from the technology, banking, financial services, engineering, and flex space sectors have continued to take up office space in major cities. This steady activity has helped maintain confidence in commercial markets.
Housing sales have also remained robust, driven by rising incomes, improved affordability, and better connectivity, which have encouraged homebuyers to upgrade their living conditions. Demand in warehousing has remained strong, fueled by advancements in logistics and the needs of sectors such as e-commerce, engineering, and automobiles. Institutional investors have shown increased interest in mixed-use assets and emerging categories such as data centers, senior living, and co-living, driven by demographic and digital shifts. These trends have helped Tier II and III cities gain more attention, creating a broader base for future growth.
Looking ahead to 2026, Colliers expects the sector to maintain its momentum, with both commercial and residential demand remaining healthy. Steady occupier interest, growing homeownership, and improved infrastructure are set to guide the next phase. Industrial, warehousing, and alternative assets are likely to benefit further from expanding manufacturing and modernizing supply chains. Investor participation is expected to remain strong, driven by REITs, SM REITs, InvITs, and AIFs, which make real estate investing more accessible. The report adds that ESG-linked decisions and technology-led buildings will shape long-term strategies.
On the office front, the report highlights that India crossed 50 million square feet of leasing in the first nine months of 2025, driven mainly by Global Capability Centres (GCCs). By the end of the year, Grade A demand is expected to reach nearly 70 million square feet. In 2026, demand is likely to stabilize around 70-75 million square feet as occupiers increasingly seek high-quality, tech-enabled, and sustainable spaces. GCCs are expected to expand further, while flex workspaces may account for about one-fifth of Grade A leasing. The report emphasizes a shift toward workplace designs that use AI, IoT, and automated systems to improve efficiency and reduce costs. Sustainability will also move to the forefront, with most new supply expected to be green certified.
In the housing sector, sales in 2025 have remained steady, supported by improved affordability and infrastructure improvements across major cities. Colliers expects this momentum to continue in 2026, driven by urbanization and rising lifestyle needs, which are increasing demand for premium homes, plotted developments, and gated communities. Tier II and III cities are set to see more activity as developers expand into new markets. The report also notes emerging interest in redevelopment, driven by supportive urban policies, and the growing adoption of fractional ownership models in premium housing.
Overall, the Indian real estate market is poised for continued growth, with a focus on quality, sustainability, and technological innovation.
