Currently, India has five publicly listed Reits: Brookfield India Real Estate Trust, Embassy Office Parks Reit, Mindspace Business Parks Reit Nexus Select Trust, and Knowledge Realty Trust.
The US's recent 50 per cent tariff on Indian exports will have a trickledown effect on India's affordable housing, potentially derailing demand as well as supply in this segment, according to experts. Pointing to worker incomes and jobs in micro, small and medium enterprises (MSMEs), and small and medium enterprises (SMEs) that typically make up majority of the customer base of affordable housing, would take a hit in the near terms due to the tariff change, further crippling India's affordable housing sector, already reeling from the impact of the Covid-19 pandemic.
'Earlier, such beliefs were primarily observed among older buyers, but now we see younger buyers showing interest in aligning purchases with numerological or astrological significance.'
Housing sales in seven major cities rose 5 per cent annually to about 1.2 lakh units during the April-June period, while demand fell 8 per cent from the preceding quarter on surge in prices, according to Anarock. Real estate consultant Anarock, which is one of the leading housing brokerage firm, on Thursday released the data of housing market for the current April-June quarter. In April-June 2024, housing sales across seven major cities are estimated at 120,340 units, up 5 per cent from 115,090 units in the year-ago period.
Interest in green living is rising, with clean air and open spaces becoming key selling points for residential projects, particularly as Indian cities struggle with deteriorating air quality.
Home purchase affordability has improved in the first half of calendar year (CY) 2025, after the RBI reduced the repo rate by 100 basis points (bps), according to real estate consultancy Knight Frank India.
Housing demand should improve nationwide after the Reserve Bank of India (RBI) cut the repo rate by a larger-than-expected 50 basis points (bps) on Friday, said real estate industry executives. The rate cut comes after housing sales in top Indian cities in the first quarter of 2025 dipped 28 per cent due to skyrocketing residential property prices and geopolitical headwinds, according to Anarock.
Real-estate firms have welcomed the Goods and Services Tax Council's reforms, expecting better affordability for buyers, spurring demand. The council has reduced the rate on cement from 28 per cent to 18 per cent, while the rate on sand lime bricks or stone inlay work and granite blocks has been cut to 5 per cent from 12 per cent.
The net debt of top eight realty firms fell 43 per cent to Rs 23,000 crore last fiscal, from around Rs 40,000 crore in 2019-20, as their cash flow improved on strong housing sales, according to Anarock. Real estate consultant Anarock noted that the unfettered demand for housing across the country has enabled the country's leading large and listed developers to reduce their debt. Anarock analysed financial performances of the top eight developers engaged in the development of residential real estate.
India's top listed real estate developers reported steady growth in Q4FY25, supported by healthy pre-sales, even as earnings reflected signs of moderation amid elevated housing prices and subdued launches.
Part-I of this three-part series dives into Delhi-NCR's SPR, Sohna, Dwarka Expressway, and Jewar Airport leading the charge.
Housing sales have jumped over two-fold during July-September period at 62,800 units across seven major cities on better demand driven by low mortgage rates and hiring in IT/ITeS sector, according to property consultant Anarock. Sales of residential properties stood at 29,520 units in the year-ago period and 24,560 units in the previous quarter. The seven cities tracked by Anarock are Delhi-NCR, Mumbai Metropolitan Region (MMR), Chennai, Kolkata, Bengaluru, Hyderabad and Pune.
After the post-pandemic slump in demand, unsold inventory in the affordable housing segment in the top seven cities dropped by 19 per cent in the first quarter of the 2025 calendar year (Q1CY25), according to a report by real estate consultancy firm Anarock.
India's top listed real estate developers - DLF, Lodha Group, Prestige Estates, and Oberoi Realty, excluding Godrej Properties - reported strong presales growth in the first quarter (Q1) of 2025-26 (FY26), even as earnings showed a mixed trend. According to Nomura, the top five developers - DLF, Lodha, Prestige, Oberoi, and Godrej - recorded a cumulative 59 per cent year-on-year (Y-o-Y) growth in presales.
'Developers have started offering 70% to 100% extra area and beyond.' 'If the market cycle shifts -- as many are already predicting with signs of price saturation and reduction -- most recent redevelopment projects will unravel.'
'Legally clean farmland is difficult to find. It requires time, money, and legal effort to verify the title.'
Capital value appreciation outpaced rental value growth in several key micro-markets between 2021 and 2024, with Noida Sector 150 in the National Capital Region (NCR) leading the pack with a 128 per cent rise in capital values compared to rental value growth of just 66 per cent, according to a report by property consulting firm Anarock.
Strong demand for cultural and spiritual hubs is expected for destinations like Varanasi, Kolkata during Durga Puja, and Pushkar for the camel fair, besides leisure destinations like Goa, Udaipur, Jaipur and Coorg.
'Every delay directly increases the cost burden on developers. Land holding charges, financing costs, and compliance expenses escalate as approvals drag on.'
Even as sectors across India embrace technological transformation, the construction side of the real estate industry continues to trail global trends. While technologies like Building Information Modelling (BIM), 3D printing, drone surveillance, and IoT-enabled smart building systems are increasingly common overseas, their adoption in Indian construction remains limited and largely experimental, developers said.
Average residential property prices in seven cities increased 10% to 34% due to new supplies in the luxury and ultra-luxury segments and overall demand.
However, the consultant cautioned that security concern may keep prospective property buyers at bay for now.
Developers based outside Mumbai are making a beeline for India's largest real estate market through redevelopment projects. These include Delhi-based DLF, Bengaluru-based Prestige Estates and Puravankara, Pune-based Kolte-Patil Developers and Vascon Engineers, and Hyderabad-based Ramky Estates.
DLF will officially launch its Mumbai housing project in the next quarter as the company has received the RERA approval a day before, while the real estate major sold out all 1,164 units in its luxury residential project Privana North securing Rs 11,000 crore revenue, DLF Homes joint managing director and chief business officer Aakash Ohri said.
Office space owners are looking at good times ahead as rentals are expected to rise due to demand for Grade A office spaces outpacing supply that has been sluggish due to construction delays, long gestation periods and developers' interests shifting to residential.
The move is to align affordable housing finance flows to the increase in property costs and inflation, says Raghu Mohan.
The primary drivers: Geopolitical disruptions inflating fuel and operational costs, and a surge in travel demand.
Data centres are increasingly becoming a key part of the real estate landscape, as reality firms - with rich expertise in land acquisition, construction and dealing with government approvals - are seeing them as opportunities to build long-term assets with continuous revenue flow.
Real estate developers are hoping that the slew of tax concessions announced in Union Budget 2025, set to take effect this financial year, will spur demand for affordable and mid-segment housing, even as the broader housing market shows signs of fatigue.
Buying makes sense for those planning to stay in a city for at least 7 to 10 years. Financial preparedness is crucial.
While demand for sub Rs 50-lakh affordable housing prevails, market players cite increased land rates, escalated construction costs and low margins as key prohibiting factors.
'In the past six months, capital markets have seen a dip, and realty is struggling. The stock-market investor will be cautious of putting that investment in real estate when there may be a slowdown coming.'
India's hospitality sector is rolling out the red carpet for investors. A flurry of upcoming IPOs, or initial public offerings, the entry of new players, and ambitious expansion plans by Indian and global hotel brands are ushering in what could be the industry's most formalised era yet. Leading the charge are real estate titans, who are turning their hotel arms into global hospitality chains.
As the Union Budget 2025-2026 (FY26) inches closer, the Indian real estate industry is seeking stamp duty cuts, revised home loan limits and updated affordable housing norms through Pradhan Mantri Awas Yojna (PMAY), single-window clearance and eco-friendly policies, among others. Industry leaders and consultancy firms, including Anarock, Raheja, Gaurs, Kanodia Group, Reach, Urban Space, Justo and Eros Group, have shared their expectations.
Union Finance Minister Nirmala Sitharaman on Saturday announced a fresh Rs 15,000 crore 'SWAMIH Fund' for completion of 1 lakh units in stalled housing projects across various cities, a move aimed at providing relief to distressed homebuyers whose investments are stuck. In November 2019, the Centre announced a stress fund named 'Special Window for Affordable and Mid-Income Housing' (SWAMIH), to complete stalled housing projects across India.
'Always ensure that lease terms are clearly written in the agreement, including rent escalation clauses and notice periods.'
Mumbai -- home to industry titans and Bollywood stars -- is witnessing a slow offtake of houses priced between Rs 10 crore and Rs 50 crore. Industry insiders and real estate watchers explain why.
Mumbai metropolitan region, comprising Mumbai city, Navi Mumbai and Thane, leads the pack (in delayed projects) with 210,000 units at an approximate valuation of Rs 2.34 trillion.
India's flexible (flex) office segment, having breached pre-pandemic levels, is thriving as corporates, startups, multinational corporations, and global capability centres (GCCs) expand in India, seeking low-capital yet Grade A plug-and-play facilities. In the first quarter (Q1) of 2025, the flex office segment continued to grow, with flex space leasing rising by 22 per cent to 2.2 million square feet (msf), according to Colliers.
Housing sales rose 7 per cent annually in 2024 across eight major cities to reach 12-year high at 3,50,613 units on better demand for premium homes amid stable mortgage rates and strong economic growth, according to Knight Frank. Last month, real estate consultant Anarock, however, had reported that housing sales declined 4 per cent in 2024 to nearly 4.6 lakh units across seven major cities.
