India's real estate sector begins FY26 with transactions of Rs. 60,415 cr, driven by tech advancements in Environmental, Social, and Governance (ESG)

India's real estate market demonstrated significant resilience in FY25, in the face of global economic challenges, supported by major reforms, swift urban growth, and evolving consumer preferences, as per a report from Grant Thornton Bharat. The sector saw 99 transactions totaling Rs. 60,415 crore (US$ 6.99 billion), with private equity leading the way in capital inflows at Rs. 27,225 crore (US$ 3.15 billion) across 48 deals. The number of mergers and acquisitions rose to 36 transactions valued at Rs. 5,350 crore (US$ 619 million), highlighting a trend towards mid-sized consolidations and platform-oriented acquisitions. Public market activity was also robust, with initial public offerings (IPOs) and qualified institutional placements (QIPs) generating Rs. 25,843 crore (US$ 2.99 billion), fueled by institutional interest in Grade A commercial, warehousing, and retail properties. Sales in the residential sector of major cities increased by nearly 77% from FY19 to FY25, indicating a resurgence in buyer confidence, with primary transactions accounting for 57% of the market in FY25. While sales of affordable housing dropped by 9% in Q1 FY25, unsold inventory decreased by 19%, reflecting strong absorption alongside a trend toward premium housing. Office leasing experienced a notable recovery, driven by demand from global capability centers, IT/IT-enabled services, e-commerce, and flexible workspace providers, particularly in tier one and emerging tier two cities. Key trends include a growing preference among investors for Grade A, Environmental, Social, and Governance (ESG) compliant properties and an increased use of artificial intelligence, blockchain, and the Internet of Things, which are revolutionizing development and leasing. Despite facing challenges like affordability issues and regulatory delays, India's real estate sector is positioned for sustainable, inclusive, and technology-driven growth in FY26.