Residential Real Estate in India Grows 77% Since FY 2019, Shows Strong Buyer Confidence

India's housing real estate market has seen a dramatic turnaround with a 77% increase in sales from FY 2019 to FY 2025, as per Grant Thornton Bharat's latest report. Sales picked up from 3.07 lakh units in FY 2019 to 5.44 lakh units in FY 2025 in major Indian cities, indicating a strong V-shaped rebound after COVID and renewed confidence in property as an investment asset.

Key Factors Driving the Growth

1. Rising Primary Market Demand

57% of FY 2025 housing sales came from under-construction or new properties, reflecting increasing faith in developers and the RERA-supported regulatory environment. It represents increasing confidence in orderly real estate development.

2. Secondary Market on the Rise

The proportion of resale or ready-to-move-in homes increased from 38% in FY 2019 to 43% in FY 2025 due to demand for early possession and well-located places.

3. Increasing Demand for Properties

There is an increasing demand for luxury properties over 1 crore supported by increased disposable incomes, improved lifestyles, and high-end products offered by leading developers of metro cities and up-and-coming locations.

4. Strong Institutional Investments & Private Equity Inflows

The industry has seen considerable capital inflow, with $6.99 billion in real estate deals in FY 2024–25. Of this, $3.15 billion was from private equity, increasing liquidity and confidence. New paradigms such as small and medium REITs and increased interest in data centers, logistics parks, and warehouses are also transforming the investment scenario.

Future Outlook: What's Ahead for Indian Housing?

The momentum is expected to continue, thanks to:

1. Government policy reforms

2. Digital adoption in real estate

3. Flexible living options like co-living and managed rentals

4. Growth in Tier-2 cities driven by better infrastructure and connectivity

By LNN (Liyaans News Network)