India’s real estate sector closed 2025 on a note of resilience and structural transformation, marked by record institutional investments, evolving residential preferences, and the emergence of new asset classes such as senior living, data centres, and healthcare-led developments. While housing sales moderated in several large cities amid affordability pressures, rising prices, strong office leasing, and growing interest in purpose-driven and wellness-oriented housing underscored the sector’s long-term strength.

Industry leaders remain optimistic about 2026, citing robust domestic fundamentals, infrastructure-led growth, expanding Tier 2 and 3 city opportunities, and increasing institutional participation as key drivers shaping the next phase of India’s real estate cycle.

Here’s what they say:

Parveen Jain, President, NAREDCO: “2025 has been a landmark year for India’s real estate sector. Institutional investments reached an estimated $10.4 billion, a 17% increase over 2024, marking two consecutive years of record activity. Domestic investors played a leading role, capturing more than half of total market share, while foreign investors also demonstrated strong confidence, particularly from the Americas. The office segment reclaimed its position as the key focus for institutional capital, while residential and commercial development continued to attract strategic platform commitments for deployment over the next few years. Bengaluru, Mumbai, and the National Capital Region remained dominant investment destinations, reflecting strong demand and growing economic activity.

Looking toward 2026, the sector is expected to sustain this momentum, supported by robust domestic fundamentals, growing office and logistics demand, and a deep talent pool. Key factors will include policies and budget allocations that facilitate infrastructure growth, urban development, and institutional participation. As demand rises across top cities and emerging markets, investors and developers will need to focus on delivering stabilised, income-generating assets while expanding access and affordability. India’s real estate market is positioned to remain resilient and opportunity-rich, offering both long-term wealth creation and solutions aligned with evolving urban and economic needs.”

Ankur Gupta, JMD, Ashiana Housing: “As 2025 comes to a close, the senior living sector in India is showing clear signs of growth and maturity. There are now over 20,000 dedicated units across the country, with most seniors choosing independent living that combines autonomy with opportunities for social interaction. This trend reflects a shift in mindset where life after retirement is being reimagined, seniors are increasingly seeking active living communities that enable purpose, engagement, health, and social connection, rather than viewing retirement living as merely a housing solution. Institutional interest in real estate has also strengthened, reaching record levels this year, and the senior living segment is beginning to attract serious attention. Investors are recognizing the long-term potential of this market as awareness grows and regulations become clearer. Cities such as Bengaluru, Pune, Chennai, and parts of the National Capital Region are witnessing increased activity, while smaller cities are gradually exploring new opportunities.

Looking ahead to 2026, the sector is expected to maintain its strong growth momentum. Future projects will focus on creating living environments that thoughtfully balance independence, care, and community engagement. With improved data availability, more organized investment platforms, and innovative senior living models, the market is moving toward a more structured and sustainable future.”

Anantharam Varayur, Co-founder, Manasum Senior Living: “2025 has been a defining year for India’s real estate and senior living landscape. The segment, once considered niche, is now attracting new developers, institutional investors, and long-term capital, signalling a decisive shift toward purpose-driven housing. What started as a South and West India–led trend is now expanding rapidly across northern markets, with developers exploring cities like Jaipur, Lucknow, and Chandigarh for senior community projects.

This expansion reflects senior living is a new regime in India’s real estate growth cycle. The organised market, currently estimated at around ₹30,000 crore, is projected to grow threefold by 2030, driven by demographic demand and lifestyle evolution. As we move into 2026, the sector stands poised to redefine how India builds for ageing; with healthcare, independence, and dignity at the heart of community design.”

Abhay Jindal, Managing Director, Homeland Group: “The year 2025 saw India’s real estate market display its strength during the tough economy. The number of residential property sales in large cities fell by approximately 14%, from the previous year’s total of about 460,000 units to almost 395,000 units; however, due to an increase in demand from buyers looking for quality products, the average price of homes also rose significantly. 

Office leasing topped 80 million sq ft, led by Global Capability Centres, which accounted for about 40% of demand. Industrial and logistics sectors also continued to attract steady inflows. Tier 2 and 3 cities picked up momentum, with developments like Homeland Global Park creating sustainable, mixed-use neighbourhoods that improve livability and support local economies.

For 2026, the outlook remains positive, with ~70% of developers expecting over 5% price growth amid stable rates and 6.5-7% GDP expansion. Emerging trends include AI-integrated smart buildings, wellness-focused designs, and rising demand for healthcare real estate and data centres, favouring innovative, eco-conscious developments that deliver lasting societal value.”

Mukul Bansal, Co-Founder & Managing Director, Motiaz: “As we close 2025, the Tricity real estate market has shown remarkable resilience and maturity. Residential demand remained robust, driven by end-users rather than investors, with mid-to-premium 3 BHK and 4BHK+study configurations witnessing the fastest absorption. The year saw a clear shift toward wellness-centric, low-density developments nestled close to the Shivalik foothills, where buyers prioritised larger balconies, natural ventilation, and community-oriented green spaces over sheer carpet area.

Looking into 2026, the impending completion of the Chandigarh-Manali expressway corridor and the operationalisation of new industrial and IT hubs along the periphery will further reduce average commute times and fuel demand for integrated townships that blend residential, light-industrial, and lifestyle components. Sustainability is no longer an add-on; projects embedding rainwater harvesting, solar-ready infrastructure, and EV charging as standard features are commanding 8–12% price premiums. The era of isolated apartments is giving way to thoughtfully planned ecosystems where families live, work, and grow together; this will define the next wave of urban evolution in the region.”

Ashish Jerath, President–Sales & Marketing, Smartworld Developers: “2025 has been a year of measured progress for Indian real estate, marked by a decisive shift toward end-user–driven demand and long-term value creation. In the premium segment, buyers are increasingly prioritising quality, credibility, and durability of product, leading to a clear tilt toward larger, more credible developers. In the luxury segment, branded residences benchmarked against global peers have emerged as a major trend. This aligns well with India’s growth trajectory and the rapid addition of one of the world’s largest pools of millionaires. This evolution reflects how closely Indian real estate is now aligning with international standards of design, construction, and partnerships, while remaining firmly supported by strong domestic fundamentals. Looking ahead, the premium segment will grow along infrastructure-led corridors, improving affordability for buyers in this category. Buyers will increasingly evaluate developments based on commute time and quality of life rather than physical distance in kilometres, with a growing preference for large-scale developments. On the banking and finance front, last year’s GST reduction by the government and the RBI’s rate cuts have boosted buyer confidence. We expect this sentiment to strengthen further with the next anticipated rate cut. As a developer, the coming year presents an opportunity for the industry to build with greater clarity and purpose.”

Ramani Sastri, Chairman & MD, Sterling Developers: “In 2025, the Indian real estate sector demonstrated exceptional resilience and momentum, driven by robust demand, rising aspirations, and supportive government-led initiatives, positioning it as one of the most dynamic and fastest-growing markets globally. The recent rate cut has also aided in strengthening market confidence and serves as a strong signal of policy support for the real estate sector and the broader economy and will play a crucial role in sustaining homebuyer confidence in the coming year. Home buyer confidence is at an all-time high, urging consumers to invest in their dream homes, driving sustained demand. Rising homeownership amongst millennials and Gen-Z, supported by higher disposable income and the desire to upgrade to larger, luxurious spaces is also a major trend influencing demand for luxury housing. As India’s economy continues to grow, there is an increasing interest among the homebuyers to continue to invest in residential real estate for long-term returns. While the residential real estate sector continues to show robust performance in 2025, we definitely hope to see lower interest rates next year which will help drive growth. The Indian real estate market is on an upward trajectory and the sustained demand will solidify the sectors position well into 2026.”

Harsh Jagwani, Managing Director, Notandas Realty, “In 2025, luxury real estate in India clearly moved beyond just being about size or pricing. Buyers became far more focused on the overall living experience – location quality, thoughtful design, privacy and the way a building actually functions once people move in. In Mumbai, this was especially visible in established neighborhoods like Bandra, Juhu and Santacruz where limited supply and redevelopment led projects continued to see strong traction. For HNIs and UHNIs, the attraction to luxury housing has been driven by a mix of confidence and clarity. Stable economic conditions, strong capital markets and greater transparency over the last few years have made real estate a more predictable asset class. At the same time, luxury homes are increasingly viewed as personal spaces that offer comfort, security and long-term value rather than purely speculative investments. We have also seen growing interest from celebrities and high-net worth investors in commercial real estate, largely because of the appeal of well-managed Grade A assets that offer steady rental income and long-term stability. Looking ahead to 2026, the luxury segment is likely to become more selective. Buyers will place greater importance on construction quality, sustainability, design integrity and post-handover service, rewarding developers who focus on consistency rather than scale.”

Manas Mehrotra, Founder, 315Work Avenue: “Coworking spaces are becoming a major force in reshaping India’s commercial real estate landscape. As organizations seek to create dynamic, future-ready workplaces, investing in high-quality, well-designed office spaces has emerged as a strategic imperative. Contemporary spaces with ergonomic layout, abundant natural light, and designated spaces for teamwork promote innovation, enhance employee satisfaction, and raise overall productivity. As these industries scale operations, attract global mandates, and drive innovation, they are increasingly opting for agile, future-ready work environments that offer scalability, cost-efficiency, and access to talent. Flexible space is no longer a cutting-edge trend in this sense; it is now the core of business strategy. With the shift towards hybrid work models and employee-centric workplaces, demand for premium, technology-enabled, and green office space is picking up steam. Workplaces today are becoming active seekers of workplaces that accommodate their social and environmental agendas too. As competition grows and organizations place greater emphasis on employee well-being and operational efficiency, A-grade office spaces are set to play a defining role in the future of work. This trend is also being significantly fueled by the expansion of Global Capability Centers (GCCs), which have emerged as a major demand driver for the sector. While major metro cities have been the key markets for coworking spaces, there’s a growing demand in tier-2 and tier-3 cities too, making the market more diverse. As players in the flexible workspace sector continue to grow their footprint at record speed, it’s clear that organizations in all sectors now recognize agile real estate not as a temporary solution, but as a long-term strategic priority.”

Mahendra Nagaraj, Vice President, M5 Mahendra Group: “As we wrap up 2025, India’s real estate and infrastructure sector has shown remarkable resilience despite macroeconomic headwinds. Key structural reforms and demand-supportive policies have strengthened fundamentals, and the GST rationalisation announced this year stands out as a particularly positive development. By cutting GST on critical building materials such as cement from 28 % to 18 % and lowering rates on stone, brick, and finish materials, the government has meaningfully eased input costs for builders, thereby creating a firmer platform for demand recovery across housing segments. Looking to 2026, we are optimistic about sustained momentum in the sector. Urbanisation trends combined with targeted tax relief and continued policy support will help bolster consumer confidence and enhance affordability. At M5 Mahendra Group, we remain committed to delivering high-quality, customer-centric projects that respond to evolving expectations. We believe 2026 will be a year where demand strengthens further, project execution accelerates, and meaningful value is created for homeowners.”