Archive · 8 Sep 2025
Indian Real Estate: Launches Increase Amid Price Concerns
The Indian real estate market is seeing more new projects being planned, which is good news.
Big companies are doing well and selling a lot of homes.
However, prices are going up, especially for luxury homes, which could make it harder for people to afford them.
Rising land costs and potential IT sector job losses due to tariffs are other risks.
Despite strong sales, the stock market for real estate companies has gone down this year.
Infrastructure projects have caused land prices to spike.
Overall, the market is growing, but affordability issues and external factors could slow things down.
New residential project launches are expected to increase in the second half of FY26.
Listed developers aim for 18-20% year-on-year growth in pre-sales in FY26.
Average residential prices in top cities rose significantly in Q2CY25, hurting affordability.
Rising land prices present challenges for business development.
Layoffs in the IT sector pose a potential downside risk to real estate demand.
- Who
- Indian real estate market
- What
- Anticipated launch improvements, increasing prices, and challenges
- When
- Q2FY26, FY26, and recent years
- Where
- India, particularly Mumbai, Bengaluru, and Delhi-NCR
- Why
- To analyze the current state and future trends of the real estate sector
Challenges
Opportunities
Affordability
Challenges
Rising prices and reduced affordability.
Opportunities
Increase in project launches will offset price increase.
Land Costs
Challenges
Higher land acquisition costs.
Opportunities
Large companies can acquire land parcels to boost market share.
- Q1FY26 Pre-Sales (Listed Developers)
- ₹43,200 crore (up 45% year-on-year)
- Targeted Pre-sales in FY26
- ₹1.4 trillion (up 20% year-on-year)
- Q1FY26 Industry-Level Launches
- 229 million square feet (down 12% YoY, down 5% sequentially)
- Average Price Increase (Top 7 Cities, Q2CY25)
- 6% to 27% YoY
- Yamuna Expressway Land Price (2019 to H12025)
- ₹1,600/sq. ft to ₹6,500/sq. ft
- Devanahalli Land Price (2019 to H12025)
- ₹2,200/sq. ft to ₹7,300/sq. ft
- Nifty Realty Index Decline (CY25)
- 16%
Sources
Is NCR’s Hottest Property Hub Gurugram Losing Its Charm? Here’s What The Report Says
Indian real estate’s ‘Never Burst’ bubble: Financial advisor explains the paradox
Realty launches to improve, but pricier homes may dampen demand