As 2025 draws to a close, India’s real estate sector tells a story not of frenzy, but of maturity. This was a year marked by resilience, recalibration, and quiet confidence, shaped by infrastructure push, digital transformation, premiumisation, and steady end-user demand. The road ahead, most industry leaders agree, points toward more disciplined, technology-led, and institutionally aligned growth in 2026.
One of the clearest shifts in 2025 was the way technology embedded itself into construction and infrastructure. Pete Nicholson, Senior Vice President at Nemetschek Group, describes the year as a turning point where digital engineering moved decisively from experimentation to execution. He said, “In 2025, India’s construction and infrastructure sector crossed a defining threshold as digital engineering moved from experimentation to execution. AI, BIM, and digital twins became integral to how projects are designed, delivered, and managed.”
Across metros, logistics corridors, industrial parks, and smart cities, cloud-based BIM platforms improved coordination and reduced risk, while digital twins enabled data-led planning and lifecycle cost optimisation. Nicholson also pointed to the role of public initiatives like the National Infrastructure Pipeline and PM Gati Shakti in reinforcing integrated planning, transparency, and sustainability. Importantly, digital maturity is now influencing investor confidence and partner selection, not just project execution.
On the ground, infrastructure continued to reshape real estate demand patterns. Akshay Taneja, CEO of TDI Infrastructure, noted that while interest rate volatility and construction costs remain risks, real estate linked to infrastructure-led corridors has emerged as a safer bet. He said, “As 2025 comes to an end, real estate remains a good investment, especially in infrastructure-led corridors, where you can see public capital expenditure being placed into real demand for real, in real time.”
Taneja highlighted a clear movement away from saturated metro cores towards emerging zones such as Kundli and Sonipat, driven by projects like the KMP Expressway, UER II, the Delhi–Panipat RRTS corridor, and proposed metro extensions. Backed by employment anchors like large manufacturing plants and industrial belts, these micro-markets offer what he describes as a more prudent risk-return balance, with the focus firmly on long-term capital appreciation and rental stability rather than speculation.
Housing, particularly in the mid-income and premium segments, remained a strong pillar through 2025. Pradeep Aggarwal, Founder and Chairman of Signature Global, said, “India’s housing sector continued to display strong momentum through 2025, supported by healthy economic fundamentals, rising consumer confidence, and steady demand across mid-income and premium segment homes.”
Aggarwal pointed to the RBI’s cumulative 125 basis points rate cut, income tax relief in the Union Budget 2025, and GST rationalisation as key factors easing borrowing costs and improving sentiment. Premium housing stood out, with nearly 42 percent of new supply in Delhi NCR falling in the luxury and ultra-luxury category, according to an ANAROCK report. Among key micro-markets across Delhi NCR, Dwarka Expressway, Southern Peripheral Road, and South of Gurugram (Sohna) remained at the top of homebuyers’ preference lists, supported by rapid infrastructure development, improved connectivity, availability of larger plotted and high-rise formats, and strong potential for long-term capital appreciation. With inflation stabilising, continued policy support, and developers increasingly focusing on quality, sustainability, and timely execution, the sector is firmly positioned for sustained growth. Going ahead, real estate is expected to remain a preferred long-term investment avenue while playing a pivotal role in employment generation, urban infrastructure development, and India’s broader ‘Viksit Bharat’ vision.”
Echoing this confidence, Ashok Kapur, Chairman of Krishna Group and Krisumi Corporation, highlighted Delhi-NCR’s standout performance in 2025. He said the region recorded the highest housing price growth among India’s top cities, rising around 24 percent year-on-year. Kapur also cited CBRE data showing that home sales and new launches crossed 200,000 units between January and September 2025, with luxury apartment sales surging 97 percent year-on-year. Improved connectivity through projects like the Dwarka Expressway and Urban Extension Road II has played a crucial role in boosting absorption and buyer confidence.
Looking ahead, industry leaders see 2026 as a year of consolidation and institutionalisation. Avneesh Sood, Director at Eros Group, said, “India’s real estate sector enters 2026 on a more mature footing, driven by premiumisation, institutional capital, and alignment with global demand.” He noted that while residential volumes are stabilising, value growth remains strong, with homes priced above Rs. 1 crore contributing over 60 percent of total sales value.
Sood also highlighted the rise of new growth engines such as data centres, senior living, student housing, flexible workspaces, and tier-2 cities, some of which have seen value appreciation of 20 to 50 percent. Strong office demand, led by Global Capability Centres, is expected to push leasing beyond 70 million sq. ft in 2026.
Talking about the outlook for 2026, Pyush Lohia ,Director Lohia Worldspace said that the outlook is positive. He adds, "Stable home-loan rates and continued public investment in housing infrastructure should sustain demand, while decentralising urbanisation is expected to lift the share of new launches from Tier-2 and Tier-3 regions to nearly 45%. Lohia Worldspace will pursue disciplined regional expansion through mixed-use residential clusters that integrate retail, green corridors and community amenities, delivering neighbourhoods that support everyday life. We are also evaluating modular construction techniques and low-carbon concrete innovations to enhance resource efficiency, while digital project tracking and AI-driven supply-chain management will sharpen delivery timelines and cost control. With increasing institutional capital flowing into the mid-segment and stronger customer preference for climate-smart homes, 2026 will be a year of measured, sustainability-led growth and deeper regional diversification for the company."
Developers, too, see a more structured future. Robin Mangla, President of M3M India, described 2025 as an inflection point driven by homeownership demand, rapid infrastructure delivery, and a shift toward experiential living. He pointed to the growing acceptance of branded residences as the next leap in luxury and said the sector is now more transparent, confident, and innovation-led.
Murali Malayappan, Chairman and Managing Director of Shriram Properties, summed up the sector’s evolving character by noting increased consolidation and buyer preference for large, trusted developers. He said sustainability, digital integration, and proptech adoption will move from differentiation to necessity in 2026, with green building practices becoming a market standard.
Taken together, 2025 was not about explosive growth but about building foundations. As 2026 approaches, Indian real estate appears ready to reward disciplined capital, technology-driven execution, and developments aligned with long-term urban aspirations.
