2025 Year Gone-By and Outlook for 2026

By Dhruman Shah, Promoter, Ariha Group
 
As we reflect on 2025, it is clear that India’s real estate sector—especially in metropolitan hubs like Mumbai—has entered a phase of decisive transformation. The year has been marked by strong end-user sentiment, impressive redevelopment momentum, bullish luxury housing demand, and a significant infrastructure-led push that redefined the residential landscape.
 
Residential Real Estate: A Year of Sustained Demand
The residential segment continued its strong upward trajectory throughout 2025. End users dominated the market, with a noticeable preference for well-designed, efficiently planned, and amenity-rich homes. The appetite for quality living spaces—be it compact urban residences or spacious premium apartments—remained resilient even in the face of rising interest rates and construction costs.
 
Consumers today are more informed, value-conscious, and strongly inclined toward developers with a solid delivery track record. This has helped organized players strengthen their position, encouraging better transparency, accountability, and timely project execution.
 
Redevelopment: The Strongest Growth Engine of 2025
Redevelopment has undoubtedly been the standout story of 2025. With land scarcity intensifying across Mumbai and adjoining regions, societies and tenants are increasingly choosing redevelopment as the most viable route to modern infrastructure and enhanced living standards. Government policies, fast-tracked approvals, and higher FSI allocations added further momentum. The coming years will see redevelopment evolve into the principal growth avenue for the residential market in Mumbai.
 
Luxury Housing: A Market Redefined
2025 continued the extraordinary run of luxury and ultra-luxury housing, driven by HNIs, NRIs, business owners, and new-age entrepreneurs. Premium neighbourhoods witnessed record transactions, underscoring a fundamental shift: homebuyers are placing a premium on privacy, space, bespoke amenities, green design, and branded lifestyles. This segment is no longer only about aspiration—it is about experience, exclusivity, and long-term value creation.
 
Connectivity & Infrastructure: The Backbone of Market Confidence
The completion and advancement of large-scale infrastructure projects have been crucial in shaping the city’s realty landscape in 2025:
•    Mumbai Coastal Road has drastically improved north–south travel, enhancing the value proposition of key micro-markets.
•    Goregaon–Mulund Link Road (GMLR) promises seamless east–west connectivity, opening up newer residential corridors.
•    Metro expansion across Routes 2A, 7, and upcoming lines has reduced travel time and boosted demand around transit-connected hubs.
These infrastructure upgrades have not only improved liveability but also widened the scope for future development. For homebuyers, connectivity remains a primary decision-making factor, and for developers, it continues to unlock new growth pockets.
 
The Generic Market Perspective: A Sector Growing in Maturity
One of the most encouraging trends of the year has been the increasing maturity of the Indian homebuyer. The market is shifting towards long-term stability, driven by a preference for organized, reputed developers; demand for green, energy-efficient projects; emphasis on compliance, safety, and quality delivery along with increased willingness to invest in future-ready communities. This behavioural shift ensures that the sector continues to expand sustainably rather than cyclically.
 
Outlook for 2026: A Year of Consolidation, Innovation & Urban Renewal
As we move into 2026, the real estate sector stands poised for another year of robust performance. Several themes will shape the future:
•    Redevelopment will overtake new greenfield launches in land-starved micro-markets.
•    Luxury and premium housing will continue to lead sales, supported by rising affluence and lifestyle aspirations.
•    Transit-oriented development around Metro and infrastructure corridors will unlock new investment destinations.
•    Sustainability and smart design will no longer be optional but essential project components.
•    Consolidation among developers will improve sector quality and reduce risk for homebuyers.