Year Gone-By 2025 & Outlook for 2026

By Prashant Sharma, President, NAREDCO Maharashtra
 
The year 2025 has been a landmark period for India’s real estate sector, marked by significant policy reforms, robust demand across asset classes, and a renewed focus on sustainable urbanisation. As we reflect on the year gone by, the sector has not only demonstrated resilience but has also accelerated its transformation into a more transparent, tech-enabled, and consumer-centric industry.
 
2025: A Year of Consolidation, Confidence, and Consumer-Centric Growth
 
1. Strong Consumer Sentiment and Steady Housing Demand
Homebuyers continued to drive the market with sustained confidence in branded developers and organised players. The premium and luxury housing segments saw notable traction, fuelled by rising aspirations, favourable demographics, and increased purchasing power. Mid-income housing maintained steady momentum, supported by improved affordability and stable macroeconomic indicators.
 
2. Regulatory Stability Strengthening the Market
The regulatory framework — including RERA, GST consistency, and streamlined approval mechanisms — remained pivotal in enhancing industry credibility. Maharashtra, in particular, benefitted from proactive governance that encouraged smoother project execution and timely delivery. This stability encouraged both domestic and global institutional investors to deepen their commitment to the Indian real estate ecosystem.
 
3. Infrastructure-led Growth Transforming Urban Corridors
Major infrastructure projects across the Mumbai Metropolitan Region continued to redefine micro-markets. Key projects such as the Mumbai Trans Harbour Link (MTHL), metro expansions, coastal road progress, and enhanced suburban rail connectivity strengthened the growth potential of peripheral markets. These corridors emerged as hotspots for residential and commercial activity, driven by improved travel times and future-ready planning.
 
4. Commercial Real Estate and New-Age Segments Gain Momentum
While office demand stabilised at healthy levels, 2025 also saw strong appetite for flexible workspaces, Grade-A offices, and tech-driven commercial environments. New-age real estate segments — including data centres, warehousing, co-living, and senior living — continued to gain traction as evolving lifestyle and business needs shaped fresh opportunities for developers and investors.
 
5. Sustainability and Technology Take Centre Stage
2025 further cemented the industry’s transition towards green buildings, ESG compliance, and energy-efficient construction practices. Technology adoption — whether in project management, digital sales platforms, AI-driven customer engagement, or smart home features — reshaped the customer experience and enhanced operational efficiency across the value chain.
 
Outlook for 2026: A Year of Expansion, Innovation, and Policy Catalyst
As we enter 2026, expectations remain high for continued growth, innovation, and collaboration between industry, government, and stakeholders.
 
1. Anticipated Policy Interventions to Boost Housing Demand
The industry expects continued support from the government in the form of rationalised GST for under-construction properties, enhanced tax benefits for homebuyers, and incentives for rental housing. Policy reforms promoting ease of doing business and digitisation of land records will be crucial in enabling smoother development cycles.
 
2. Regional Expansion Driven by Infrastructure and Affordability
Tier-II and Tier-III cities are set to play a larger role in India’s real estate growth story in 2026. Improved connectivity, rising employment opportunities, and emerging industrial corridors will shift demand beyond metros. Maharashtra is poised to benefit significantly from these transitions, with regions around Pune, Nashik, Nagpur, and the MMR evolving into vibrant real estate clusters.
 
3. Rise of Integrated Townships and Community-Led Urban Planning
The next phase of development will focus on integrated, self-contained townships offering a blend of residential, commercial, retail, healthcare, and recreational infrastructure. These developments align with the growing preference for holistic living, walkability, and access to amenities within a single ecosystem.
 
4. Continued Momentum in Commercial and Industrial Real Estate
The office sector is expected to witness steady leasing activity driven by global capability centres (GCCs), tech firms, BFSI, and manufacturing-linked services. Industrial real estate — particularly warehousing and logistics — will thrive on the back of the “Make in India,” e-commerce expansion, and the push for domestic manufacturing.
 
5. Sustainability as Non-Negotiable
2026 will reinforce sustainability not just as a trend but as a fundamental development pillar. Developers will prioritise certified green buildings, renewable energy integration, waste management systems, and water conservation technologies. ESG-centric projects will continue to attract capital from global institutional investors and sovereign funds.
 
The journey from 2025 to 2026 reflects a sector ready for long-term transformation. With the convergence of strong demand, visionary infrastructure development, supportive policies, and a deep focus on sustainability, the Indian real estate industry is on the cusp of unprecedented growth. As we step into 2026, the focus remains clear: to create value-driven, sustainable, and customer-centric developments that shape India’s urban future.