New Delhi, June 2025: Grant Thornton Bharat , released its latest edition of India Real Estate Report FY 2025–26, highlighting continued momentum in India’s real estate sector across residential, commercial, and industrial verticals. The report reveals strong investor interest, emerging asset classes, and growing adoption of technology and sustainability practices.
Key Highlights:
– Residential Resurgence: Home sales across India’s top cities rose ~77% since FY 2019, with increasing preference for mid-to-premium homes. While affordable housing saw a slight dip in Q1 2025, overall inventory is reducing, indicating long-term demand stability.
– Commercial Real Estate on the Rise: Office leasing hit record levels in FY 2025, driven by demand from global capability centers, IT/ITeS, and flexible workspaces. Tier-2 cities are emerging as new hubs.
– Industrial & Warehousing Growth: The logistics and warehousing sector continues to expand, supported by ‘Make in India’, GST reforms, and the National Logistics Policy.
– Capital Flows & Deals: India recorded 99 real estate transactions worth USD 6.99 billion in FY 2024–25. Private equity led with USD 3.15 billion, while public markets raised nearly USD 3 billion through IPOs and QIPs.
– Technology & ESG Disruption: 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.
The sector faces rising construction costs, regulatory delays, and the need to adapt to evolving consumer preferences such as wellness-centric and integrated living. However, 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.
Developer Spotlight: Sobha Ltd.’s Bengaluru flagship, Sobha Dream Acres, is leading innovation in sustainable construction and efficient housing delivery, with plans to expand into Mumbai’s luxury market. “India’s real estate story is being rewritten—digitally, sustainably, and inclusively. The future is decentralized, tech-enabled, and investor-friendly,” said the Shabala Shinde, Partner and Real Estate Industry leader, Grant Thornton Bharat.
