Leading property developers are confident that the strong momentum in residential sales will persist into FY26, despite turbulent stock markets and economic uncertainty arising from the new US tariffs.
Though property consultants reported a dip in overall residential sales in Q4, leading developers such as Godrej Properties, Macrotech Developers (Lodha), and Signature Global recorded all-time high bookings in FY25, driven by robust demand for residential properties. Godrej Properties posted the highest sales in the country by any developer in FY25.
Irfan Razack, chairman and managing director of Prestige Estates Projects, said the residential real estate market continues to see strong demand across categories and regions. “Some of our recent launches in Bengaluru, Hyderabad, and Mumbai in March were very well received. We expect this robust demand to continue into FY26 as well,” Razack said.
Razack said the company has already recorded over `5,000 crore in sales bookings within a month from the three launches combined. Prestige on Wednesday announced it had launched 14 million sq ft of projects in Q3 FY25, compared to just 0.83 million sq ft in Q4 FY24. The company now plans to double its launches in FY26.
Razack said the strong end-user demand and GCCs setting up their centres in India, providing huge employment opportunities, will boost sales, and these factors will largely remain unaffected by the volatility of stock markets. Strong end-user demand, along with Global Capability Centres (GCCs) setting up operations in India and creating significant employment opportunities, will continue to drive sales. He added that these factors are likely to remain resilient despite stock market volatility, he added.
Amit Kumar Sinha, managing director at Mahindra Lifespace Developers, recently told FE that the overall real estate market remains buoyant, with absorption growing around 6% year-over-year. “While stock market movements may temporarily impact investor sentiment, our customer base primarily consists of end-users who make long-term, well-planned homebuying decisions,” Sinha said. The company reported a 41% increase in pre-sales during the first nine months of FY25.
Pradeep Aggarwal, chairman of Gurugram-based Signature Global, is equally optimistic about sales. “We remain optimistic that this momentum will carry into FY26, supported by steady end-user demand, rising incomes, and a growing preference for well-designed homes with modern amenities,” Aggarwal said.
Pradeep Aggarwal, chairman of Gurugram-based Signature Global, is equally optimistic about sales. In FY25, the company recorded its highest-ever annual sales bookings of ₹10,290 crore.
Aggarwal added that supportive policies, such as income tax relief in the budget and the RBI’s rate cuts, including the recent one in the first MPC meeting of FY26, have given the year a strong start and are expected to further boost housing demand across segments.
While top developers reported record numbers in Q4, overall housing sales across the top seven cities declined by 28% year-on-year, according to Anarock Property Consultants. Anuj Puri, chairman of Anarock, said the exuberance seen in residential demand during 2023 and early 2024 has started to slow. “We witnessed significant growth in housing sales through 2023 and up to Q1 2024, but it began to taper off thereafter,” Puri said.
Over the past two to three years, several investors entered the residential market, particularly in the luxury segment. However, with prices rising sharply over the last one to two years and global economic headwinds intensifying, the market began to stabilise from Q2 2024, as investors grew cautious and adopted a wait-and-watch approach. The impact of the so-called global economic slowdown on the residential segment, if any, will become clearer in the upcoming quarters, Puri added.
He attributed the slowdown partly to factors such as stock market volatility. However, he noted that new launches are performing well and there is no significant decline in demand.
Continued premiumisation
Developers like Razack of Prestige said buyers have been snapping up luxury and premium developments at an unprecedented pace over the past couple of years. Anarock’s Puri agrees, saying that luxury homes will continue to drive the Indian residential segment in 2025, as the rise of high-net-worth individuals (HNIs) and ultra-high-net-worth individuals (UHNIs) in 2024 presents a compelling landscape of opportunity, influence, and ambition.
India is currently home to over 850,000 HNIs, with this number expected to nearly double to 165,000 million by 2027. Interestingly, 20% of these millionaires are under the age of 40, highlighting the rising influence of young wealth creators, Puri said.