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The housing sales growth, translating to an increase from 3.07 lakh units in FY19 to 5.44 lakh units in FY25 across major cities, marked remarkable V-shaped recovery post-COVID.
About 57% of all sales in FY2025 were primary transactions, or sales of new or under-construction houses.
India’s residential real estate market has delivered an exceptional performance, with sales surging by nearly 77% from FY2019 to FY2025, according to a report by Grant Thornton Bharat. This growth, translating to an increase from 3.07 lakh units in FY2019 to 5.44 lakh units in FY2025 across major cities, marks a remarkable V-shaped recovery post-pandemic and underscores renewed confidence in homeownership and real estate as a stable asset class.
Key Drivers and Trends
Primary Market Momentum: 57% of all sales in FY2025 were primary transactions, or sales of new or under-construction houses. This is an increase from previous years and demonstrates the strong buyer trust in developers and regulatory framework in RERA, according to the report.
Secondary Market Growth: When more buyers look for ready-to-move-in houses in established regions, the percentage of secondary (resale) transactions also increased, rising from 38% in FY 2019 to 43% of sales, it added.
Luxury Segment Expansion: Luxury housing (above 1 crore) has seen robust demand, driven by rising incomes, lifestyle aspirations, and targeted offerings from developers, especially in metropolitan and emerging urban centres.
Institutional and Private Equity Inflows: Institutional investment has played a pivotal role in this transformation. Private equity inflows and innovative models like small and medium REITs have not only fuelled capital availability but also improved market transparency and investor participation. The sector’s appeal is further strengthened by the expansion of alternative assets such as data centres, logistics, and warehousing, aligning with India’s digital and infrastructure growth.
In FY 2024-25, the industry saw $6.99 billion in real estate transactions, with private equity accounting for the largest share at $3.15 billion. This indicates that investors are confident in the sector and that there is ample funding available for both residential and alternative real estate.
Rakesh Malhotra, founder and chairman of PRIME Developments, said, “The Indian residential real estate market has demonstrated extraordinary resilience and dynamism in the post – pandemic period, sales across major cities surging by an impressive 77% between FY 2019 and FY 2025. This trend is a reflection into the renewed confidence in homeownership, driven by growing lifestyle aspirations, rising disposable incomes, and a strong desire for asset security.”
Both primary and secondary market segments have seen a positive momentum, reflecting a growing appetite for new developments. As we move forward, this growth, sustained by technological innovation and a stable policy environment is expected to sustain the sector’s upward movement, he added.
Real Estate Market Outlook
The surge is further supported by policy reforms, digital innovation, and the rise of flexible living models such as co-living and organised rentals, catering to evolving urban lifestyles. Tier-2 cities are also gaining traction due to improved connectivity and infrastructure, while luxury and premium housing formats continue to attract discerning buyers.
Rahul Singla, director of Mapsko Group, said, “India’s residential real estate market has demonstrated remarkable resilience and growth, with sales surging nearly 77% since FY 2019, driven by strong demand across primary and secondary segments. With the help of growing institutional investments and regulatory changes, buyer tastes for premium and lifestyle-led housing are changing, as seen by this surge.”
Real estate is becoming more accessible and investor-friendly as a result of the industry’s embrace of technology and sustainability. The residential sector in India is expected to continue to be a major driver of economic expansion and wealth creation as the country becomes more urbanized and digitalised, he added.
India’s residential real estate market is on a robust growth trajectory, underpinned by strong fundamentals, evolving consumer preferences, and sustained investor interest, positioning the sector as a key pillar of the country’s economic revival.
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to markets, economy and companies. Having a decade of experience in financial journalism, Haris has been previously asso…Read More
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to markets, economy and companies. Having a decade of experience in financial journalism, Haris has been previously asso… Read More
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