India’s residential real estate market has recorded a sharp 77% surge in housing sales from FY2019 to FY2025, reflecting a strong post-pandemic rebound and growing consumer confidence, according to a new report by Grant Thornton Bharat, as published by News18.
Sales across major cities climbed from 3.07 lakh units in FY2019 to 5.44 lakh units in FY2025, demonstrating a notable V-shaped recovery in the sector. Analysts attribute this growth to renewed interest in homeownership and the appeal of real estate as a secure asset.
Primary market transactions, which include newly launched or under-construction homes, accounted for 57% of total sales in FY2025. This figure marks a noticeable rise from previous fiscal years and highlights growing buyer trust in developers and the regulatory environment under the Real Estate (Regulation and Development) Act (RERA), the report said.
The report also noted growth in the resale or secondary housing market. The share of such transactions increased from 38% in FY2019 to 43% in FY2025, driven by higher demand for ready-to-move-in homes in established urban neighborhoods.
India’s luxury housing segment—properties priced above ₹1 crore—has shown consistent expansion, fueled by rising disposable incomes, elevated lifestyle preferences, and curated offerings from real estate developers in metropolitan and emerging cities.
Institutional investment has played a key role in supporting the sector’s momentum. In FY2024-25, real estate transactions reached $6.99 billion, with private equity contributing $3.15 billion—the largest share.
The report credited the rising use of investment tools such as small and medium Real Estate Investment Trusts (REITs) for enhancing transparency and attracting a broader investor base. Additionally, capital inflows have also benefited alternative real estate segments like data centers, logistics hubs, and warehousing, aligning with India’s digital transformation and infrastructure growth.
“The Indian residential real estate market has demonstrated extraordinary resilience and dynamism in the post-pandemic period, with sales across major cities surging by an impressive 77% between FY2019 and FY2025,” said Rakesh Malhotra, founder and chairman of PRIME Developments.
Malhotra cited a rise in lifestyle-driven buying, increased incomes, and a heightened desire for asset security as key factors behind the surge. “Both primary and secondary markets are showing strong momentum, and as we look ahead, continued innovation and policy stability will likely support ongoing growth,” he said.
Rahul Singla, director of the Mapsko Group, echoed similar sentiments, stating that institutional funding and regulatory changes are reshaping buyer preferences. “Demand for premium and lifestyle-centric housing is on the rise, and technology-led transparency is making real estate more accessible and investor-friendly,” he said.
The report also pointed to policy reforms, digital innovation, and the emergence of flexible living options—such as co-living spaces and organized rentals—as critical drivers of continued growth. Tier-2 cities are increasingly gaining attention due to improved infrastructure and connectivity.
Industry leaders expect India’s residential sector to remain a pillar of economic activity, supported by urbanization, technology integration, and sustained investor interest. As the market evolves, a combination of premium offerings, investor confidence, and housing innovation is expected to further propel growth.