India realty enters FY26 with Rs. 60,415 crore (US$6.99 billion) in transactions led by tech, Environmental, Social, and Governance (ESG) trends

India’s real estate sector exhibited strong resilience in FY25 despite global economic uncertainties, underpinned by structural reforms, rapid urbanisation, and shifting consumer preferences, according to a report by Grant Thornton Bharat. The sector recorded 99 transactions worth Rs. 60,415 crore (US$ 6.99 billion), with private equity dominating capital flows at Rs. 27,225 crore (US$ 3.15 billion) across 48 deals. Mergers and acquisitions increased to 36 transactions valued at Rs. 5,350 crore (US$ 619 million), reflecting a focus on mid-sized consolidations and platform-driven acquisitions. Public markets were also buoyant, with initial public offerings (IPOs) and qualified institutional placements (QIPs) raising Rs.25,843 crore (US$ 2.99 billion), driven by institutional interest in Grade A commercial, warehousing, and retail assets.
Residential sales in major cities surged by nearly 77% between FY19 and FY25, signalling renewed buyer confidence, with primary transactions comprising 57% of the market in FY25. Although affordable housing sales declined by 9% in Q1 FY25, unsold inventory fell by 19%, indicating robust absorption amid a shift towards premium housing. Office leasing witnessed a sharp recovery, led by demand from global capability centres, Information technology (IT)/IT-enabled services, e-commerce, and flexible workspace firms, especially in tier one and emerging tier two cities. Emerging trends include investor preference for Grade A, Environmental, Social, and Governance (ESG) compliant assets and increased adoption of artificial intelligence, blockchain, and the Internet of Things, which are transforming development and leasing. Despite challenges such as affordability and regulatory delays, India’s real estate sector is well-positioned for sustainable, inclusive, and technology-driven growth in FY26.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.