India's Residential Real Estate Market Surges by 77% Since FY 2019
India's residential real estate market has seen a significant rebound post-pandemic, with total sales in major cities increasing by nearly 77% from FY 2019 to FY 2025, according to a recent report by Grant Thornton Bharat.
Real EstateResidential SalesLuxury HousingOffice LeasingLogisticsReal EstateJun 18, 2025
Primary transactions, which include under-construction homes sold by developers, accounted for 57 per cent of the total transactions in FY2025. This is a significant shift from the 38 per cent share recorded in FY 2019. Secondary transactions, involving the resale of properties, made up the remaining 43 per cent, the report noted.
The luxury housing segment, defined as properties priced above Rs 1 crore, saw a substantial increase from FY 2019 to FY 2025. This surge was driven by higher incomes, changing lifestyles, and targeted efforts by developers to cater to this segment.
Office leasing also experienced a sharp rebound in FY2025, reaching record levels. The demand for office spaces was particularly strong due to the growth of Global Capability Centers (GCCs), IT/ITES, e-commerce, and flexible workspaces, especially in tier 1 cities and emerging tier 2 hubs. The report highlighted that India’s office market is showing strong absorption and positive rental growth.
The logistics and warehousing sector continues to expand, supported by initiatives such as ‘Make in India’, Goods and Services Tax (GST) reforms, and the National Logistics Policy. These policies have created a favorable environment for the growth of the logistics industry.
India recorded 99 real estate transactions worth $6.99 billion in FY 2024–25. Private equity firms led the way with $3.15 billion, while public markets raised nearly $3 billion through Initial Public Offerings (IPOs) and Qualified Institutional Placements (QIPs).
Technological advancements such as Artificial Intelligence (AI), blockchain, smart buildings, and green construction are reshaping the way real estate assets are developed and operated. Real estate tokenization and Specialized Mortgage REITs (SM-REITs) are emerging as new investment vehicles, offering investors more diverse options.
The report forecasts sustained growth in premium housing, commercial office spaces, logistics infrastructure, and alternative investments. This growth is expected to be driven by digital innovation, urban decentralization, and increasing 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 also highlighted strong investor interest, the emergence of new asset classes, and the growing adoption of technology and sustainability practices in the real estate sector.
Grant Thornton Bharat is a leading professional services firm in India, providing audit, tax, and advisory services to a wide range of clients. The firm’s insights and reports are highly regarded in the business and financial communities.
Frequently Asked Questions
What is the percentage increase in residential sales from FY 2019 to FY 2025?
Residential sales in major cities increased by nearly 77 per cent from FY 2019 to FY 2025.
What is the percentage share of primary transactions in FY 2025?
Primary transactions, including under-construction homes sold by developers, accounted for 57 per cent of the total transactions in FY 2025.
What factors are driving the surge in luxury housing?
The surge in luxury housing is driven by higher incomes, changing lifestyles, and targeted efforts by developers to cater to this segment.
What sectors are contributing to the growth in office leasing?
The growth in office leasing is being driven by Global Capability Centers (GCCs), IT/ITES, e-commerce, and flexible workspaces, especially in tier 1 cities and emerging tier 2 hubs.
What are some emerging investment vehicles in the real estate sector?
Real estate tokenization and Specialized Mortgage REITs (SM-REITs) are emerging as new investment vehicles in the real estate sector.
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