New Delhi, December 27, 2025:
Year Gone-By 2025 & Outlook for 2026
By Mr. 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.
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2025 Year Gone-By & Outlook for 2026
By Mr. Kaushal Agarwal, Chairman, The Guardians Real Estate Advisory
The year 2025 has been a defining period for India’s real estate sector, marked by resilience, reform-driven stability, record sales, and a notable shift in consumer behaviour. Even in the face of global economic uncertainties, the Indian real estate market continued its upward trajectory—powered by robust end-user demand, investor confidence, and unprecedented infrastructure development across key metros.
2025: A Year of Strong Consumer Sentiment and Structural Strength
2025 reaffirmed that India’s real estate sector is no longer cyclical but structurally strong. Multiple factors contributed to this:
1. Sustained Housing Demand across Segments
Homebuyers continued to prioritize ownership—driven by lifestyle upgrades, hybrid work models, and long-term wealth creation. The mid-income and upper mid-income segments remained the volume drivers, while luxury and ultra-luxury housing experienced record absorption fuelled by HNIs, NRIs, and global investors seeking stability in Indian assets.
2. Infrastructure-Led Market Momentum
Critical infrastructure projects such as metro expansions, inter-city connectors, coastal roads, new airports, and transit-oriented corridors significantly enhanced the liveability and investment attractiveness of emerging micro-markets. This infrastructure push has redefined urban mobility and enabled balanced growth across regions.
3. Regulatory Maturity and Transparency
RERA-led transparency, GST parity discussions, and consistent policy support continued to restore consumer faith. Developers with strong balance sheets and delivery track records enjoyed maximum traction, pushing the industry further towards consolidation.
4. NRIs & Institutional Capital Strengthen India’s Position
NRIs continued to invest aggressively, particularly in Mumbai, Pune, Bengaluru, Hyderabad, and NCR. Additionally, private equity and institutional inflows reaffirmed belief in India’s economic fundamentals and real estate’s stable returns.
Other Key Trends That Defined 2025
- Shift towards larger, amenity-rich homes as consumers prioritized health, community living, and holistic lifestyles.
- Redevelopment gained extraordinary momentum, especially in Mumbai and Pune, due to ageing buildings and favourable government policies.
- Luxury housing boomed, becoming an asset class of its own with demand far exceeding supply in prime markets.
- Technology-driven transformations—from AI-based sales platforms to digital documentation—enhanced transparency and accelerated transactions.
- Sustainability & green living moved from being differentiators to standard expectations for homebuyers.
Outlook 2026: A Year of Optimism, Expansion & Evolution
As we look ahead, 2026 is poised to be another landmark year for Indian real estate, shaping the next phase of long-term growth. Several themes will define the industry’s direction:
1. Strong Demand Will Continue Across Major Cities
With stable economic indicators, rising disposable incomes, and favourable demographics, housing demand is expected to remain robust. Tier II and III cities will emerge stronger as infrastructure expands and corporate footprints widen.
2. Redevelopment & Infill Development to Take Centre Stage
Cities like Mumbai will continue to witness rapid redevelopment activity, unlocking value from brownfield sites, enabling vertical growth, and modernizing urban living environments.
3. Luxury & Branded Residences to Lead Value Creation
Demand for exclusive residences, gated villa communities, second homes, and branded developments will continue to rise. HNIs and NRIs will remain key demand generators.
4. Commercial Real Estate Will Enter a New Growth Cycle
Flexible offices, Grade-A assets, and well-planned integrated business districts will see significant traction as companies consolidate and expand. Warehousing and industrial real estate will also experience a steady uptick driven by e-commerce, manufacturing, and supply chain modernization.
5. Plotted Land Investments to Gain Strategic Relevance
Plotted land investments are expected to gain renewed interest as investors increasingly recognize the long-term value of land ownership. Improved road, rail, and metro connectivity is opening up new growth corridors around urban centres, making plotted land a compelling option for both end-users and long-term investors seeking capital appreciation and flexibility. At The Guardians, we see this trend influencing our forward-looking strategy as we evaluate opportunities within the plotted land segment.
6. Technology & AI Will Reshape Real Estate Advisory
AI-led advisory, precision marketing, consumer analytics, virtual site tours, and digital transactions will form the backbone of real estate sales and advisory services. Customer experience will become the ultimate differentiator.
7. Sustainability Will Drive Investment Decisions
Green buildings, energy-efficient design, and ESG parameters will influence both homebuyers and institutional investors. Developers who invest in sustainable innovation will lead the next wave of growth.
The Indian real estate industry enters 2026 with record-high consumer confidence, a strengthened regulatory environment, and unmatched infrastructure momentum. Developers, policymakers, and advisory firms have an extraordinary opportunity to build on this foundation.
We believe the next year will unlock greater innovation, transparency, and customer-centricity—redefining the way India buys, builds, and experiences real estate.
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Year Gone By 2025, and the Road Ahead
Why Real Estate Is No Longer About Assets, but About Intelligent, Human-Centric Ecosystems
By Mr. Shilpin Tater, Managing Director, Superb Realty
As 2025 draws to a close, it has become increasingly clear that real estate, in India and globally, is undergoing a structural shift. The conversation has moved beyond scale and asset creation toward intelligence, experience, and long-term relevance.
This change is not merely perceptual. According to JLL’s Global Occupier Survey, a majority of occupiers today prioritize employee experience, wellness, and sustainability over pure cost efficiency while selecting real estate. In India, this shift played out strongly through 2025, with occupiers and homebuyers alike choosing fewer but better-designed spaces that deliver measurable everyday value.
2025: The Year Expectations Changed
Across asset classes, real estate evolved from static infrastructure into experience-led ecosystems. Offices transitioned from attendance-driven environments to collaboration-first spaces. While overall footprints became more efficient, expectations from every square foot increased significantly.
This mirrors a global pattern. CBRE’s workplace research shows that hybrid work has not reduced the relevance of offices, but has instead raised the bar for design quality, flexibility, and technology integration. Indian commercial markets reflected this clearly in 2025, with stronger demand for Grade A, well-managed buildings that support collaboration, focus, and well-being.
In residential real estate, buyers also became far more intentional. Larger homes were no longer the default aspiration. Instead, natural light, efficient layouts, access to green spaces, and a sense of community emerged as key decision drivers. A home increasingly came to be seen not just as an investment, but as an enabler of balance.
Design and Well-Being as Measurable Performance Drivers
One of the most important shifts in 2025 was the way design began to be evaluated. Design moved beyond aesthetics and into performance.
Research by the Harvard T.H. Chan School of Public Health has consistently demonstrated the link between indoor environmental quality, including air, light, and acoustics, and cognitive performance, health, and productivity. In India, this thinking gained momentum during 2025 as developers and occupiers began assessing buildings on daylight optimization, acoustic comfort, circulation planning, and energy efficiency.
Well-being followed a similar trajectory. What was once positioned as a premium offering is now increasingly seen as a baseline expectation. Access to cleaner air, greenery, quieter environments, and spaces that support mental recovery are no longer differentiators. They are fundamentals for both homes and workplaces.
Technology as the Invisible Backbone
Technology continued to play a decisive but understated role. The most impactful innovations in real estate today are not visible features, but integrated systems that quietly improve performance, reliability, and user comfort.
Global benchmarks across smart buildings indicate that AI-led energy management and predictive maintenance can reduce operating costs while improving uptime and operational efficiency. In India, 2025 marked a turning point where such systems moved from optional enhancements to core infrastructure in forward-looking developments.
When technology works best, it disappears into the background, simplifying daily life while making buildings more resilient over time.
Sustainability Moves from Narrative to Strategy
Perhaps the clearest signal from 2025 was the maturation of sustainability. Across global markets, green-certified buildings continue to demonstrate stronger occupancy, rental resilience, and investor interest. This trend is increasingly evident in India as well.
Sustainability is no longer discussed only in the context of responsibility. It is now firmly linked to long-term value creation, risk mitigation, and future-proofing. Developers and investors alike are recognizing that environmentally responsive buildings are better positioned to remain relevant as regulatory expectations, climate realities, and user awareness continue to evolve.
Looking Ahead to 2026
As we step into 2026, several forces are converging. Integrated, mixed-use developments aligned with global principles of walkability and proximity will gain prominence. Demand for flexible and personalized spaces will rise as occupiers and residents seek environments that reflect their lifestyles and values.
Well-being will evolve into fully integrated ecosystems, while AI-led building intelligence will redefine how spaces adapt and perform over time. Sustainability will continue to influence valuations, financing, and occupier decisions, firmly establishing itself as a long-term value driver rather than a short-term narrative.
Beyond Buildings
The defining lesson of 2025 is clear. Real estate is no longer just about constructing spaces. It is about shaping human experiences with responsibility, empathy, and foresight.
Buildings that fail to adapt will age faster. Those designed around people, intelligence, and balance will remain relevant for decades. As an industry, our opportunity is not just to respond to today’s demand, but to anticipate tomorrow’s way of living and working.
The future is not just being built. It is being thoughtfully shaped.
And as we say, the future is Superb.
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Indian Real Estate: 2025 in Review and the Road Ahead for 2026
By Mr. Kamlesh Thakur, Co-Founder & Managing Director, Srishti Group
The year 2025 marked a clear shift in India’s real estate landscape; from a focus on mere connectivity to the broader and more meaningful concept of accessibility. Homebuyers today are no longer evaluating locations solely on distance, but on ease of daily movement, time savings, and seamless access to workplaces, social infrastructure, and lifestyle hubs. This evolving mindset has also accelerated the development of new signature addresses, redefining urban living across key markets.
Infrastructure development remained the primary catalyst for growth through 2025. Strategic projects such as the Goregaon–Mulund Link Road (GMLR) have significantly strengthened east–west connectivity in Mumbai, easing congestion and unlocking new residential and commercial micro-markets. Alongside this, the rapid metro network expansion improved last-mile accessibility, while enhanced connectivity to Navi Mumbai and Thane expanded the residential catchment and supported steady demand across emerging hubs.
From a market standpoint, 2025 witnessed sustained end-user demand, particularly in mid-income and premium housing segments. Buyers increasingly gravitated towards well-planned developments that combine strong accessibility with quality design, leading to the emergence of distinctive, future-ready neighbourhoods as the next generation of signature addresses.
Looking ahead to 2026, the sector is poised for more structured and sustainable growth. With multiple infrastructure projects nearing completion, several underserved corridors are expected to transform into prominent residential and mixed-use destinations. Developers will focus on creating landmark projects and signature addresses aligned with evolving mobility patterns, urban aspirations, and long-term value creation.
In essence, as India’s cities continue to evolve, accessibility-led planning and the rise of new signature addresses will remain central to shaping real estate demand in 2026.
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Year-Ender 2025 & Outlook for 2026: Building the Next Chapter of Mumbai’s Urban Story
By Mr. Vijay Choraria, Managing Director, Crest Ventures Limited
As 2025 draws to a close, it is evident that Mumbai’s real estate landscape has entered a phase of structural transformation, driven largely by accelerated infrastructure development and improved urban mobility. The year gone by reinforced a simple yet powerful truth—connectivity is no longer an enabler; it is the primary driver of real estate value.
Over the past year, key infrastructure upgrades such as the Santacruz–Chembur Link Road (SCLR) strengthening east–west connectivity, the seamless flow enabled by the Eastern Freeway, and capacity enhancements along the Eastern Express Highway have significantly reduced travel times across the city. Simultaneously, the rapid expansion of the Mumbai Metro network has redefined daily commuting, bringing once-distant micro-markets closer to commercial and lifestyle hubs. Enhanced connectivity to Navi Mumbai through Sion-Panvel Highway and Atal Setu has further expanded the city’s effective boundaries, unlocking new development potential while easing pressure on traditional cores.
2025 also marked a shift in how “signature addresses” are perceived. Prime locations are no longer defined only by legacy or pin codes; they are being reshaped by redevelopment, better infrastructure, and integrated urban planning. Established neighbourhoods are witnessing a renewed relevance as modern development blends with improved access, creating aspirational addresses that offer both convenience and long-term value.
Outlook: Mumbai’s Next Five Years — A City Redefined by Connectivity
Over the next five years, Mumbai will undergo a structural expansion that fundamentally redefines what constitutes “Greater Mumbai.” The city will no longer be viewed as a compact island core with peripheral extensions; instead, it will evolve into a multi-nodal metropolitan region spanning Panvel, Virar and Alibaug, enabled by a once-in-a-generation infrastructure build-out.
Landmark projects such as the Atal Setu have already compressed travel time between Mumbai and Navi Mumbai, effectively integrating Panvel and the new airport zone into the city’s daily commute map. The ongoing Mumbai Coastal Road is transforming north–south mobility along the western edge, while the rapidly expanding Mumbai Metro network is stitching together east–west corridors that were historically underserved. The upcoming Navi Mumbai International Airport and the proposed Mumbai–Ahmedabad Bullet Train further cement Mumbai’s position as a globally connected urban region rather than a constrained island city.
The implication for real estate is clear: connectivity will dictate demand more decisively than legacy pin codes. As commuting friction reduces, residential and commercial demand will increasingly concentrate around well-linked nodes that offer rapid access to multiple business districts. Micro-markets that sit at the intersection of these infrastructure corridors will emerge as the most sought-after addresses.
In this context, locations such as Chembur are poised to see sustained demand and value appreciation. With seamless access to the Eastern Freeway, SCLR, metro corridors, and direct connectivity to Navi Mumbai via Atal Setu, Chembur exemplifies the future of urban living in Mumbai—central, connected, and efficient. As the city’s effective boundaries expand, it is these strategically positioned neighbourhoods that will define the next chapter of Mumbai’s real estate growth.
Mumbai’s transformation over the coming years will not be about sprawl, but about integration—where infrastructure collapses distance, expands opportunity, and reshapes the hierarchy of urban value across the metropolitan region.
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2025 Year Gone-By & Outlook for 2026
By Ms. Shraddha Kedia-Agarwal, Director, Transcon Developers
As 2025 draws to a close, India’s real estate sector continues to demonstrate remarkable resilience, adaptability, and long-term promise. Both the residential and commercial segments have gained solid momentum as evolving consumer preferences, robust infrastructure growth, and renewed investor confidence shaped the year’s trajectory. The year gone by marked a phase of consolidation, innovation, and transformative development—particularly in Mumbai, where large-scale connectivity projects have begun to redefine the urban landscape.
Year Gone By 2025: Key Trends That Defined the Market
1. Residential & Commercial Segments Show Strong Growth
The residential sector witnessed sustained demand across mid-income, premium, and luxury categories. Homebuyers continued to prioritize well-designed living spaces, flexible floor plans, and integrated community offerings. At the same time, the commercial segment recorded stable absorption with Grade-A offices, flexible workspaces, and mixed-use developments gaining significance. Corporates showed increased preference for sustainable workplaces and digitally enabled office ecosystems, reaffirming long-term confidence in India’s commercial realty.
2. Gated Communities Emerge as the Preferred Choice
2025 further cemented the popularity of gated communities, especially in metro cities like Mumbai. Buyers are increasingly drawn to secured, well-amenitized townships that offer open spaces, wellness facilities, co-working zones, and green landscapes—all within a single ecosystem. This trend reflects the rising desire for a holistic lifestyle where convenience, safety, and wellness go hand in hand.
3. Luxury Housing Continues its Upward Curve
The luxury housing segment sustained its strong performance through the year. A surge in HNI and NRI investments, coupled with the aspiration for premium living, elevated the demand for high-end residences. With global design sensibilities, state-of-the-art amenities, and curated lifestyle offerings, luxury developments in Mumbai’s western suburbs gained significant traction. For many buyers, luxury is no longer about opulence alone—it is about exclusivity, sustainability, and experiential living.
4. Connectivity & Infrastructure Fuel Market Sentiment
2025 was a landmark year for infrastructure in Mumbai. Major connectivity projects reached crucial milestones:
- Coastal Road: Enhanced north–south travel and significantly reduced commute times, improving liveability in key micro-markets.
- Goregaon–Mulund Link Road (GMLR): Work progressed steadily, promising a future with seamless east–west connectivity and decongested suburban traffic.
- Metro Network Expansion: Multiple new corridors strengthened last-mile connectivity, reshaping residential and commercial demand patterns across the city.
These developments played a pivotal role in driving real estate activity, particularly in micro-markets with direct access to these transit corridors. Improved mobility continues to directly correlate with increased buyer interest and price appreciation.
Outlook for 2026: A Year of Consolidation, Innovation & Responsible Growth
1. Demand for Integrated Living Will Strengthen
As consumers increasingly seek comprehensive lifestyle offerings, integrated living and gated communities will remain in strong demand. Projects that offer a balance of open spaces, smart amenities, security, and sustainability will lead market preference.
2. Luxury Housing to Grow Beyond Traditional Pockets
Luxury housing in 2026 is expected to broaden its footprint beyond conventional high-value zones. Emerging micro-markets—boosted by infrastructure upgrades—will attract affluent buyers looking for spacious apartments, bespoke amenities, and distinctive architectural design. Developers will focus more on experiential luxury and personalized services within residential spaces.
3. Commercial Spaces to Evolve into Hybrid Ecosystems
With workplace dynamics continuing to evolve, commercial real estate will lean further into hybrid designs that prioritize collaboration, energy efficiency, and health-driven layouts. Demand for boutique offices, flexible spaces, and high-quality retail formats will expand.
4. Infrastructure Will Continue to Be the Biggest Catalyst
The full impact of Coastal Road Phase-II, accelerated Metro network commissioning, and continuous work on GMLR will be felt more strongly in 2026. Improved connectivity will open up new real estate corridors and support socio-economic development across the MMR. Infrastructure will remain the backbone of all meaningful realty growth in the coming year.
5. The Sector Will Move Towards Responsible, Future-Ready Development
In 2026, sustainability will play an even more central role. Developers will prioritize eco-conscious construction practices, energy-efficient solutions, and environmentally responsible design. Community-centric planning and wellness-oriented living will further shape the next phase of urban real estate.
As we enter 2026, the Indian real estate sector stands on the brink of a new era—defined by innovation, enhanced infrastructure, and evolving consumer aspirations.
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2025 Year Gone-By & Outlook for 2026
By Mr. Gaurav Varma, Director, ORA Group
The year 2025 marked a decisive phase for India’s real estate sector, driven by regulatory stability, infrastructure momentum, and a clear shift toward quality-led, end-user-focused development. Despite global headwinds, the sector demonstrated resilience across redevelopment, residential, warehousing, plotted developments, and luxury housing—setting a strong foundation for 2026.
SRA & Redevelopment: A Year of Acceleration
SRA and redevelopment activity gained strong traction in 2025, particularly in Mumbai and the MMR, with an estimated 20–25 million sq ft of projects under planning and execution. Redevelopment now contributes nearly 40% of Mumbai’s annual housing supply, supported by faster approvals and improved policy clarity. Developers with strong balance sheets and execution capabilities emerged as leaders. This momentum is expected to accelerate further in 2026.
Residential & Warehousing: Dual Engines of Growth
India’s residential market recorded sales of 4.5–5 lakh housing units across the top seven cities in 2025, led by end-user demand across mid-income, premium, and luxury segments. Unsold inventory declined to 18–20 months, reflecting healthier absorption levels.
Warehousing remained a strong institutional play, with 45–50 million sq ft of absorption, driven by e-commerce, 3PL, and manufacturing. Tier II and III cities gained prominence due to improved logistics connectivity.
Plotted Development & Gated Communities: The Aspirational Shift
Plotted developments saw 25–30% year-on-year demand growth in 2025, as buyers increasingly preferred land ownership, flexibility, and long-term appreciation. Gated communities offering security, open spaces, and lifestyle amenities emerged as the preferred choice for families and professionals—a trend expected to strengthen further in 2026.
Luxury Housing
Luxury housing accounted for 20–22% of total residential sales value across major metros in 2025. Cities such as Mumbai, Bengaluru, Pune, Hyderabad, and Delhi-NCR recorded strong demand for villas, penthouses, and branded residences, supported by rising HNI participation and double-digit price appreciation in select micro-markets. The luxury segment is poised for further growth in 2026.
Connectivity & Infrastructure: The Real Game-Changer
2025 witnessed transformative infrastructure progress, including the Mumbai Trans Harbour Link (MTHL), Navi Mumbai International Airport, Panvel–Karjat rail corridor, and Goregaon–Mulund Link Road. These developments triggered 15–30% capital value appreciation across emerging MMR locations such as Panvel, Ulwe, Karjat, Malad and Goregaon reshaping investment and end-user demand.
Sectoral Outlook: Stability, Scale, and Smart Growth
The broader real estate sector in 2025 was characterized by strong end-user-led sales, declining unsold inventory, increased institutional investments in warehousing, rental housing, and data centres, and growing consolidation favouring credible developers. Sustainability, ESG compliance, and technology-driven development emerged as key differentiators.
As we enter 2026, the outlook remains distinctly optimistic. With policy stability, rising consumer confidence, improved financing access, and expansion into new micro-markets, Indian real estate is positioned for sustainable, scalable, and smart growth.
The year gone by marks the beginning of a transformative decade for Indian real estate. With redevelopment gaining momentum, residential and warehousing acting as growth anchors, plotted developments rising, luxury housing scaling new benchmarks, and connectivity reshaping urban contours—2026 stands out as a year of accelerated opportunities and long-term value creation.
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2025 Year Gone-By & Outlook for 2026
By Mr. 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.
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Real Estate 2025: A Year of Stability; 2026 Poised for Structured Growth
By Mr. 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.
