Real Estate 2025: A Year of Stability; 2026 Poised for Structured Growth

By Nihar Jayesh Thakkar, Founder, The Mandate House Pvt. Ltd.
 
The year gone by marked a phase of stability and consolidation for India’s real estate sector. After multiple years of post-pandemic recovery, 2025 stood out as a year where fundamentals strengthened and demand remained resilient across key asset classes.
 
Residential real estate continued to be the primary growth driver. Large Indian cities witnessed steady absorption levels, supported by end-user demand, improved affordability, and sustained interest in mid-income and premium housing. Notably, the share of organized developers crossed a dominant threshold, reflecting increasing buyer preference for credibility, compliance, and timely execution.
 
On the commercial front, office leasing activity continued to improve, driven by steady demand from technology, GCCs, and flexible workspace operators. India’s position as a global services hub strengthened further, translating into consistent absorption across top cities. Retail real estate also saw renewed momentum, supported by improving consumption trends and strong footfalls in organized malls.
 
A key highlight of the year was the sector’s improving financial discipline. Developers increasingly focused on faster execution, reduced leverage, and timely delivery, resulting in higher consumer confidence. Regulatory clarity and stronger governance frameworks further contributed to investor confidence. Institutional capital remained selective but active, favouring projects and platforms with strong governance, clear cash-flow visibility, and long-term scalability.
 
Outlook for 2026
Looking ahead, 2026 is expected to be a year of consolidation and calibrated growth for the real estate sector. Demand is likely to remain end-user driven, with a continued preference for well-located, lifestyle-oriented projects. Infrastructure-led development will play a critical role in unlocking new micro-markets and improving project viability.
 
Capital flows are expected to become more structured and disciplined, with investors prioritizing asset quality, compliance, and execution capability over aggressive expansion. Technology adoption, data-backed feasibility planning, and robust advisory frameworks will further support informed decision-making across the value chain.
 
Overall, the real estate sector enters 2026 on a stronger footing—more transparent, financially stable, and aligned with long-term fundamentals—positioning it as a reliable contributor to India’s economic growth story.