Leading real estate developers are optimistic that the impressive surge in residential sales will extend into FY26, despite the ongoing fluctuations in stock markets and the economic challenges posed by new tariffs from the U.S. While property consultants noted a decline in overall residential sales during the fourth quarter, top developers like Godrej Properties, Macrotech Developers (Lodha), and Signature Global achieved record-breaking bookings in FY25, fueled by a robust appetite for residential units.

Record Sales and Growing Demand

Godrej Properties emerged as a frontrunner, achieving the highest sales figures seen in the country for any developer during FY25. The chairman and managing director of Prestige Estates Projects, Irfan Razack, emphasized the enduring demand for residential real estate across various categories and regions. “Our recent projects launched in Bengaluru, Hyderabad, and Mumbai this March received an enthusiastic response. We foresee this strong demand trend continuing into FY26,” Razack remarked.

• Prestige’s recent launches generated over ₹5,000 crore in sales bookings within just one month.
• The company unveiled 14 million square feet of new projects in Q3 FY25, a significant increase from 0.83 million square feet in the previous quarter.

Razack believes that the robust demand from end-users, coupled with the establishment of Global Capability Centres (GCCs) in India, will create substantial job opportunities, thereby sustaining sales momentum despite stock market fluctuations.

Buoyant Market Trends

Amit Kumar Sinha, managing director at Mahindra Lifespace Developers, recently shared insights on the resilient real estate market, noting a year-on-year absorption growth of around 6%. “While market volatility might briefly sway investor sentiment, our primary clientele consists of end-users committed to long-term home purchases,” Sinha explained. The company reported a remarkable 41% increase in pre-sales during the initial nine months of FY25.

Similarly, Pradeep Aggarwal, chairman of Signature Global, expressed confidence in the ongoing sales momentum. “We anticipate that this positive trend will persist into FY26, driven by consistent end-user demand, increasing incomes, and a preference for modern homes equipped with contemporary amenities,” Aggarwal stated. In FY25, Signature Global achieved its highest annual sales bookings at ₹10,290 crore.

Supportive Policies Fueling Growth

Aggarwal also highlighted how governmental policies, such as income tax relief in the recent budget and the RBI’s interest rate cuts, including a recent reduction in the first Monetary Policy Committee meeting of FY26, are poised to further stimulate housing demand across various segments.

Despite top developers reporting record sales in Q4, overall housing sales across the top seven cities saw a 28% decline year-on-year, according to Anarock Property Consultants. Anuj Puri, chairman of Anarock, noted that the excitement in residential demand that characterized 2023 and early 2024 has begun to subside. “We observed substantial growth in housing sales through 2023 and into Q1 2024, but a tapering off followed,” Puri remarked.

Market Stabilization Amid Challenges

In recent years, numerous investors have entered the residential market, particularly in the luxury segment. However, with property prices escalating sharply and global economic challenges mounting, the market began to stabilize from Q2 2024, as investors adopted a more cautious approach. Puri indicated that the potential impact of the global economic slowdown on the residential sector will become clearer in the forthcoming quarters.

Despite the slowdown attributed in part to stock market instability, new project launches continue to perform well, with no significant decline in demand.

Luxury Market Resilience

Developers like Razack from Prestige noted that buyers are increasingly gravitating toward luxury and premium developments at an unprecedented pace. Puri concurs, asserting that luxury homes will remain a driving force in the Indian residential market throughout 2025. The rise of high-net-worth individuals (HNIs) and ultra-high-net-worth individuals (UHNIs) in 2024 paints a promising picture of opportunity and ambition.

Currently, India boasts over 850,000 HNIs, with projections indicating this number will nearly double to 1.65 million by 2027. Notably, 20% of these millionaires are under the age of 40, underscoring the growing influence of young wealth creators in the market.