India's Residential Real Estate Market Surges 77% Since FY 2019
India's residential real estate market has seen a significant surge, with sales increasing by nearly 77% from FY 2019 to FY 2025, according to a recent study by Grant Thornton Bharat.
Real EstateResidential SalesReraLuxury HousingInstitutional InvestmentReal Estate NewsJun 19, 2025
Under the head of primary market momentum, 57 per cent of all sales in FY 2025 were primary transactions, or sales of new or under-construction houses. This is an increase from previous years and demonstrates the strong buyer trust in developers and the regulatory framework under RERA (Real Estate Regulatory Authority).
Secondary market growth has also been notable. When more buyers look for ready-to-move-in houses in established regions, the percentage of secondary (resale) transactions increased, rising from 38 per cent in FY 2019 to 43 per cent of sales. This trend indicates a growing preference for established and developed neighborhoods.
In the luxury segment, housing (above Rs 1 crore) has seen robust demand, driven by rising incomes, lifestyle aspirations, and targeted offerings from developers, especially in metropolitan and emerging urban centres. This segment has become a significant contributor to the overall growth of the market.
Institutional investment has played a pivotal role in this transformation. The private equity inflows and innovative models like small and medium REITs (Real Estate Investment Trusts) have not only fuelled capital availability but also improved market transparency and investor participation. The sector’s appeal is further strengthened by the expansion of alternative assets such as data centres, logistics, and warehousing, aligning with India’s digital and infrastructure growth.
In FY 2024-25, the industry saw $6.99 billion in real estate transactions, with private equity accounting for the largest share at $3.15 billion. This indicates that investors are confident in the sector and that there is ample funding available for both residential and alternative real estate.
Rakesh Malhotra, Chairman of PRIME Developments, said that the Indian residential real estate market has demonstrated extraordinary resilience and dynamism in the post-pandemic period. Sales across major cities have surged by an impressive 77 per cent between FY 2019 and FY 2025. This trend reflects the renewed confidence in homeownership, driven by growing lifestyle aspirations, rising disposable incomes, and a strong desire for asset security.
Frequently Asked Questions
What is the main driver behind the surge in residential real estate sales in India?
The main drivers behind the surge in residential real estate sales in India include renewed confidence in homeownership, rising disposable incomes, lifestyle aspirations, and strong regulatory frameworks like RERA.
How has the primary market performed in the Indian real estate sector?
The primary market has performed exceptionally well, with 57% of all sales in FY 2025 being primary transactions, or sales of new or under-construction houses. This indicates strong buyer trust in developers and regulatory frameworks.
What is the trend in the secondary (resale) market in the Indian real estate sector?
The secondary (resale) market has seen an increase in transactions, rising from 38% in FY 2019 to 43% of sales in FY 2025. This trend reflects a growing preference for ready-to-move-in houses in established regions.
How has the luxury segment of the real estate market performed?
The luxury segment, which includes housing above Rs 1 crore, has seen robust demand driven by rising incomes and lifestyle aspirations. Developers have also targeted this segment with specific offerings in metropolitan and emerging urban centres.
What role has institutional investment played in the Indian real estate market?
Institutional investment has played a pivotal role by fuelling capital availability and improving market transparency through private equity inflows and innovative models like small and medium REITs. This has further strengthened the sector’s appeal.
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