Grant Thornton Bharat Report Highlights 77% Rise in Residential Real Estate Sales Since FY 2019
Delhi NCR: India’s residential real estate market has delivered an exceptional performance, with sales surging by nearly 77% from FY 2019 to FY 2025, as highlighted in the recent Grant Thornton Bharat report. This growth, translating to an increase from 3.07 lakh units in FY 2019 to 5.44 lakh units in FY 2025 across major cities, marks a remarkable V-shaped recovery post-pandemic and underscores renewed confidence in homeownership and real estate as a stable asset class.
Key Drivers and Trends
Primary Market Momentum: 57% of all sales in FY2025 were primary transactions, or sales of new or under-construction houses. This is an increase from previous years and demonstrates the strong buyer trust in developers and regulatory framework in RERA.
Secondary Market Growth: When more buyers look for ready-to-move-in houses in established regions, the percentage of secondary (resale) transactions also increased, rising from 38% in FY 2019 to 43% of sales.
Luxury Segment Expansion: Luxury housing (above 1 crore) has seen robust demand, driven by rising incomes, lifestyle aspirations, and targeted offerings from developers, especially in metropolitan and emerging urban centres.
Mohit Agarwal, Business Head, Conscient Infrastructure Pvt. Ltd. Said,“Luxury homes are becoming the new normal for young buyers in Gurugram, driven by a blend of aspirational, investment acumen, and lifestyle expectations. With high-end infrastructure, immaculate connectivity, and a thriving corporate ecosystem, Gurugram offers the apt standards of living that appeals to millennials and young professionals seeking more than just a residence. They seek smart features, holistic amenities, and a community-centric environment. The surge in high-rise luxury developments, coupled with attractive property offerings, reflects a generational shift where young buyers view luxury real estate as both a status symbol and a smart investment tactic. New Gurugram, in particular is emerging as a seamless blend of modern luxury and strategic urban planning, making it a hotspot for discerning young homeowners. Gurugram’s dynamic growth pattern further ensures that luxury living is not just a fleeting trend, but the new benchmark for urban homeownership.”
Institutional and Private Equity Inflows: Institutional investment has played a pivotal role in this transformation. Private equity inflows and innovative models like small and medium REITs have not only fueled capital availability but also improved market transparency and investor participation. The sector’s appeal is further strengthened by the expansion of alternative assets such as data centers, logistics, and warehousing, aligning with India’s digital and infrastructure growth. In FY 2024-25, the industry saw $6.99 billion in real estate transactions, with private equity accounting for the largest share at $3.15 billion. This indicates that investors are confident in the sector and that there is ample funding available for both residential and alternative real estate.
Rakesh Malhotra, founder and chairman of PRIME Developments,“The Indian residential real estate market has demonstrated extraordinary resilience and dynamism in the post – pandemic period, sales across major cities surging by an impressive 77% between FY 2019 and FY 2025. This trend is a reflection into the renewed confidence in homeownership, driven by growing lifestyle aspirations, rising disposable incomes, and a strong desire for asset security. Notably, both primary and secondary market segments have seen a positive momentum, reflecting a growing appetite for new developments. As we move forward, this growth, sustained by technological innovation and a stable policy environment is expected to sustain the sector’s upward movement.”
Market Outlook
The surge is further supported by policy reforms, digital innovation, and the rise of flexible living models such as co-living and organised rentals, catering to evolving urban lifestyles. Tier-2 cities are also gaining traction due to improved connectivity and infrastructure, while luxury and premium housing formats continue to attract discerning buyers.
In summary, India’s residential real estate market is on a robust growth trajectory, underpinned by strong fundamentals, evolving consumer preferences, and sustained investor interest, positioning the sector as a key pillar of the country’s economic revival.