India's residential real estate sector witnessed a strong recovery post-pandemic, with total residential sales in key urban areas growing by close to 77% from FY 2019 to FY 2025, a report published on Wednesday by Grant Thornton Bharat stated.
The research shows that in FY 2025, primary market sales, which include newly launched or in-progress homes sold directly by developers, made up 57% of total residential transactions.
On the other hand, secondary sales or resale of existing homes took 43%, up from 38% in FY 2019, indicating a marked shift in market dynamics.
The premium segment, which is homes that cost over ₹1 crore, saw strong growth over the same time. This is driven by higher disposable incomes, changing tastes among consumers, and tactical action by developers to target high-end buyers.
On the leasing front, commercial office space rental jumped in FY 2025 to record levels. GCCs, the IT/ITES industry, e-commerce firms, and co-working space providers have been demanding strong, leading the resurgence. Tier-2 cities and major metros have been the chief gainers, highlighting the sustained resilience of India's office space market in both space absorption and rental growth.
The warehousing and logistics sector also keeps pace, driven by flagships such as 'Make in India', the introduction of the Goods and Services Tax (GST), and the National Logistics Policy.
In FY 2024–25, India witnessed 99 realty deals worth $6.99 billion. Private equity funds had a preponderant share with $3.15 billion, and public market transactions—via Initial Public Offerings (IPOs) and Qualified Institutional Placements (QIPs)—collected nearly $3 billion.
Technology is playing a revolutionary role in the industry. Technologies such as artificial intelligence, blockchain, smart infrastructure, and green construction methods are reshaping the way properties are constructed and operated. New models such as real estate tokenisation and Small & Medium Real Estate Investment Trusts (SM-REITs) are creating fresh avenues for investors.
In the future, the report forecasts sustained momentum in premium residential projects, commercial offices, logistics infrastructure, and alternative real estate investments. These are likely to be driven by digitalisation, urban decentralisation, and increasing investor confidence.
"India's real estate story is being rewritten—digitally, sustainably, and inclusively. The future is decentralised, tech-enabled, and investor-friendly," observed the leadership team at Grant Thornton Bharat.
The results highlight a dynamic investment climate characterized by high interest, changing asset classes, and a growing focus on technology and sustainability within the real estate environment.
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