Indian Real Estate Growth amplifies as Residential Sale records 77% Rise: Report

The momentum of robust growth in the Indian housing market, at 77% over the last seven years, is likely to continue. Grant Thornton real estate report predicts growth in real estate investment in India in FY2026.

The investors’ interest, structural reforms, and rapid urbanization uptick the growth trajectory in this fiscal year also. The latest report by Grant Thornton exhibits property demand rise from national and international investors.

According to the report, other measures that reflect a positive outlook for the Indian property market include technology and sustainability imperatives. Adding to these is the transformation of real estate buyers’ behaviour.

“Backed by investors’ confidence and adaptive consumer behaviour, it remains a key economic pillar, set for continued momentum in FY26,” highlighted in the report, “driven by urbanisation, infrastructure growth, and technology integration,” it added.

Cost-effectiveness being a primary concern affordable housing in India in 2025 witnessed a 57 percent rise in transactions for affordable homes. The figure reflects strong home-buying sentiment amongst top Indian cities from FY 2019. The resilient behaviour and under-construction projects lead to a 77% rise in the sale of residential properties between FY19 to FY25.

While, affordable housing lost its way in between, the luxury housing demand in India continues to grab attention. Specially, luxury residential properties above Rs. 1 Crore witness a high demand from real estate investors.

Indian Real Estate witness High Demand for Future-Ready Homes

Grant Thornton real estate report states, “Investment flows in FY25, reflected a clear pivot towards operational residential developments, income-yielding commercial properties, and logistics platforms.” The report complies this robust sentiment for investors growing interest in Grade ‘A’ assets.

The Private Equity accounts for approximately half of the sale at $3.15 billion. The Grant Thornton report also exhibits that India recorded 99 real estate deals valuing Rs. $6.99 billion in FY25. Also, the public market activity shows buyers' confidence in the Indian real estate market. It incorporates IPOs and QIPs (Qualified Institutional Placements) which contributed $2.99 billion.

The growing co-living trends in India and digital evolution in Indian real estate led to a transformation in the market. It includes Blockchain AI, and the Internet of Things (IoT) that ease buying-selling in Indian real estate. With technological advancement, virtual reality and smart homes become the reality of India’s realty sector.

Sustainable Housing in India leads to Rise in Indian Real Estate

“Tokenisation of real estate can democratise access and improve liquidity if supported by regulation,” the report added.

Sustainability now becomes the foundation for modern-day living, where carbon emission is curtailed massively. ESG-compliant real estate projects are prioritized by institutional investors and end-users.

The Grant Thornton real estate report states, “We-are seeing growing demand for green-certified, wellness-centric housing.”

Tier 2 Cities Real Estate Growth | Impact of Urbanization on Indian Real Estate

At par with top Indian Cities, tier-II cities including Jaipur, Nagpur, and Bhubaneswar, creates new horizons for residential and commercial hubs with the support of Government-backed infrastructure. Also, the co-living and rental concept is becoming popular amongst professionals.

Looking at the trend, the FY26 real estate outlook holds a rise of tech integration, Small and Medium REITs (SM REITs). Also, the platform-level partnership and Machine Learning make the future bright for Indian real estate.

“Despite affordability challenges and global volatility, India’s real estate sector is well positioned to grow sustainably,” said Shabala Shinde, partner and real estate industry leader at Grant Thornton Bharat.