India's Residential Real Estate Market Surges: A Post-Pandemic Rebound
From FY 2019 to FY 2025, India's residential real estate market has seen a significant surge in sales, driven by luxury housing, lifestyle changes, and strong investor interest.
Real EstateResidential SalesLuxury HousingOffice LeasingLogisticsReal Estate NewsJun 18, 2025
Primary transactions, comprising under-construction homes sold by developers, accounted for 57 per cent of the total transactions in FY2025. Secondary transactions, involving the resale of properties, made up the remaining 43 per cent, showing a notable shift from the 38 per cent share recorded in FY 2019.
Luxury housing (above INR 1 crore) surged from FY 2019 to FY 2025, driven by higher incomes, lifestyle changes, and targeted developer efforts. This segment has seen significant growth, reflecting a shift in consumer preferences and economic conditions.
Office leasing rebounded sharply in FY2025, hitting record levels. Demand surged due to GCCs, IT/ITES, e-commerce, and flexible workspaces, especially in tier 1 cities and emerging tier 2 hubs. India’s office market shows strong absorption and positive rental growth, the report mentioned.
The logistics and warehousing sector continues to expand, supported by ‘Make in India’, GST reforms, and the National Logistics Policy. These initiatives have bolstered the sector, making India a more attractive destination for logistics and warehousing investments.
India recorded 99 real estate transactions worth $6.99 billion in FY 2024–25. Private equity led with $3.15 billion, while public markets raised nearly $3 billion through IPOs and QIPs. This robust investment activity underscores the confidence of investors in the Indian real estate market.
AI, blockchain, smart buildings, and green construction are reshaping how assets are developed and operated. Real estate tokenisation and SM-REITs are emerging as new investment vehicles, offering innovative ways to access the market.
The report forecasts sustained growth in premium housing, commercial office spaces, logistics infrastructure, and alternative investments, driven by digital innovation, urban decentralisation, and investor appetite. “India’s real estate story is being rewritten—digitally, sustainably, and inclusively. The future is decentralised, tech-enabled, and investor-friendly,” said the Grant Thornton Bharat leadership team.
The report revealed strong investor interest, emerging asset classes, and growing adoption of technology and sustainability practices. These trends are expected to continue, shaping the future of India’s real estate market.
Frequently Asked Questions
What is the percentage increase in residential sales in India from FY 2019 to FY 2025?
Residential sales in major cities in India surged by nearly 77 per cent from FY 2019 to FY 2025.
What percentage of total transactions in FY2025 were primary transactions?
Primary transactions, comprising under-construction homes sold by developers, accounted for 57 per cent of the total transactions in FY2025.
What factors are driving the surge in luxury housing in India?
Luxury housing (above INR 1 crore) is being driven by higher incomes, lifestyle changes, and targeted developer efforts.
How has the office leasing market performed in FY2025?
Office leasing rebounded sharply in FY2025, hitting record levels due to demand from GCCs, IT/ITES, e-commerce, and flexible workspaces, especially in tier 1 cities and emerging tier 2 hubs.
What new investment vehicles are emerging in the Indian real estate market?
Real estate tokenisation and SM-REITs are emerging as new investment vehicles, offering innovative ways to access the market.
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