What’s trending in Indian real estate?

The sector has shown optimism in recent times, growing at a CAGR of close to 10 per cent.¹ While currently, real estate is going through a phase of reconfiguration after a period of substantial growth, it is expected to gain pace and become a major growth engine in the times ahead

Indian real estate is seeing strong investor confidence with healthy capital inflows. Capital inflows surged by 14 per cent y-o-y in the first nine months of 2025, reaching USD10.2 billion–a clear signal of growing trust in the sector’s long-term potential²

Technology is reshaping how we build, operate and manage real estate. From AI-powered decision-making to digital twins and data-driven platforms, these tools are transforming everything–from design and construction to asset management and customer engagement. Enterprise applications such as ERPs are being adopted widely to address complex portfolio management, regulatory compliance and the need for transparent financials. Alongside this, specialised tools for sales, CRM platforms, project management applications and construction monitoring systems are improving visibility, efficiency and decision-making

India’s urban population is expected to reach 600 million by 2030, driving demand for smarter housing and cities of the future.³ By that time, the cumulative demand for affordable housing is projected to reach 31.2 million units.⁴ This presents a massive opportunity to reimagine urban development through technology, sustainability and inclusive design

Luxury housing is in demand and evolving rapidly. Apartment sales in this category shot up by 97 per cent y-o-y in the first nine months of 2025.⁵ High-rise living is also becoming increasingly common. Another clear shift is the rise of branded residencies, from global names to luxury labels, which reflects a shift in buyer expectations. Besides, developers are also moving away from bare shell handovers, focusing instead on finished, experience-led homes, where value addition and premium pricing is now the norm

While luxury is in demand, investor sentiment may start turning cautious as rapid launches soften the market. Execution risks are also rising, especially with developers and contractors handling multiple high-end projects simultaneously. These projects demand specialised skills, tighter timelines and flawless delivery, which highlights the need for capacity building and capabilities enhancement across the ecosystem. There’s also a buyer-side risk of default/distress, where investors without deep pockets may feel the stress of holding on to the investment for the entire project duration or face liquidity issues in case of project delays

The office market has remained steady, with 59.6 million sq. ft. of absorption in the first nine months of this year.⁶ Demand is being driven by domestic companies and global firms expanding GCC operations. What is clearly visible is the shift towards better-quality buildings. Occupiers are upgrading offices and choosing well-located assets. The momentum is likely to grow in 2026

A new development boom is unfolding as big developers are acquiring large tracts of land and launching integrated townships, signalling confidence in long-term demand. At the same time, regional boundaries are blurring–developers from the west are going to south and vice versa. Northern players are also exploring other regional markets. Basically, regional brands are now increasingly thinking national in their growth strategy