The Indian Real Estate Boom: A New Growth Phase Begins in 2025 & Set to Continue in 2026

By Ajjay Bhagyakar | Published by Griha Realty

Source: business today.

Source: business today

India’s real estate sector has officially entered a strong growth phase in 2025, transitioning from its post-pandemic recovery into a structurally stronger and more resilient market — and the momentum is expected to carry forward into 2026. Business Today+1

Premium & Luxury Homes Lead the Charge

One of the most striking trends in 2025 has been the dominance of premium and luxury housing. According to the latest Knight Frank India report, homes priced above ₹1 crore now account for more than half of total residential sales across major cities — signalling a clear shift in buyer preferences toward larger, higher-value living spaces. Business Today+1

Cities like Bengaluru, Hyderabad, Chennai, and Delhi-NCR recorded strong double-digit price increases, reflecting robust demand even amid limited quality supply. Business Today

Changing Buyer Profile ( The Indian Real Estate Boom: A New Growth Phase Begins in 2025 & Set to Continue in 2026 )

Today’s buyers are predominantly end-users — individuals and families seeking long-term homes with modern amenities and quality construction — rather than short-term investors. This shift has helped strengthen market fundamentals and absorb higher price points. Business Today

Office & Commercial Real Estate Rebounds

The commercial segment also posted impressive performance in 2025. Demand for office space has remained strong and resilient, with gross office absorption expected to cross 80 million sq ft — driven by multinational firms, technology companies, and flexible workspace growth. Business Today+1

This rebound reflects renewed corporate confidence, driven by sustained business growth and hybrid working models. The Economic Times

Emerging Asset Classes & Investment Flows

Beyond residential and office spaces, sectors such as retail real estate, logistics hubs, warehousing, and data centres are attracting institutional capital — buoyed by e-commerce growth and supply-chain expansion. Business Today

Affordability Challenges & Policy Needs

Despite the overall positive momentum, affordable housing segments continue to face pressure due to rising construction costs and financing limitations. Industry experts stress the need for targeted policy support to ensure inclusive growth remains on track. Business Today

What Lies Ahead in 2026

The Indian Real Estate Boom: A New Growth Phase Begins in 2025 & Set to Continue in 2026. Looking forward, analysts expect the real estate sector to sustain its growth trajectory into 2026. Premium housing demand is likely to remain strong, while broader market participation may expand as disposable incomes rise and credit conditions ease. The Economic Times

Real estate is increasingly being viewed as a stable, yield-oriented asset class, offering tangible value, rental income potential, and resilience compared with traditional investments. The Economic Times