Jan

Real Estate Market 2025 Recap and Key Trends Shaping 2026

Introduction

The year 2025 marked a clear shift in how the Indian real estate market functions, grows, and creates value. The sector moved into a phase where decision-making became more deliberate, buyers showed stronger preference for quality and long-term usability, and developers focused on execution discipline rather than aggressive expansion.

Across major cities, housing demand demonstrated resilience despite global uncertainty and cautious consumer sentiment. Instead of chasing volume, the market rewarded projects that offered better planning, integrated living environments, and credible delivery timelines. This change in buyer mindset made 2025 a year of structural maturity rather than short-term exuberance.

This blog presents a comprehensive recap of India’s residential real estate performance in 2025, followed by an in-depth analysis of the trends that are expected to shape 2026 across residential, commercial, retail, and emerging real estate segments.

India Residential Market 2025: Sales and Value Overview

In calendar year 2025, residential home sales across India’s top seven cities reached approximately 3.95 lakh units. While this represented a moderation in overall transaction volumes, the total sales value exceeded ₹6 lakh crore, reflecting sustained growth in ticket sizes.

This contrast between unit sales and value highlights a defining theme of 2025. Buyers were willing to spend more per home, prioritizing space, amenities, and project credibility. Larger homes, premium specifications, and township-led developments gained prominence across metros and tier-one cities.

Key national observations from 2025 include:

Demand remained predominantly end-user driven.

Average home prices appreciated steadily without speculative spikes.

Branded and large-scale developers captured a growing share of demand.

Top Cities Driving Residential Demand in 2025

Residential sales activity across India remained concentrated in established urban markets.

Mumbai Metropolitan Region led with approximately 1.27 lakh homes sold, driven by redevelopment activity and high-end launches.

Pune ranked among the strongest performers with nearly 65,000 units sold, supported by IT-led employment and infrastructure growth.

Bengaluru recorded close to 62,000 units, reflecting sustained demand from technology professionals.

Delhi NCR, Hyderabad, Chennai, and Kolkata followed, each shaped by distinct local dynamics.

Collectively, these markets reinforced the importance of urban employment centers, infrastructure connectivity, and lifestyle-oriented housing in driving residential demand.

Pune Residential Market 2025: Sales, Value, and Direction

Pune recorded approximately 65,135 residential unit sales during 2025. While volumes were lower compared to the peak years, the city continued to demonstrate market stability and buyer confidence.

What defined Pune’s 2025 performance was not sheer volume, but the quality of demand:

Buyers gravitated toward well-planned townships and integrated developments.

West and North Pune corridors dominated demand, supported by IT employment and social infrastructure.

Average home prices increased modestly, reflecting a healthy, non-speculative market.

Pune’s real estate ecosystem benefited from its balanced buyer profile, a mix of first-time homeowners, upgraders, and long-term investors.

Supply Trends and Built Environment in 2025

On the supply side, developers maintained a calibrated approach throughout 2025. Across the top cities, approximately 4.19 lakh new residential units were launched, indicating controlled expansion aligned with absorption capacity.

Rather than flooding the market, supply focused on:

Phased township developments.

Mid-premium and premium housing segments.

Projects with integrated amenities and open spaces.

This supply discipline contributed to market stability, reduced inventory stress, and strengthened buyer confidence across regions.

Key Real Estate Trends Shaping 2026: A Detailed Outlook

1. Premiumisation as a Structural Trend

The shift toward premium housing is no longer cyclical. In 2025, homes priced in higher brackets accounted for a significantly larger share of total sales value. This trend is expected to deepen in 2026 as buyers increasingly seek homes that support long-term living, work-from-home flexibility, and lifestyle needs.

Developers focusing on superior layouts, quality materials, and holistic community planning are likely to benefit the most from this trend.

2. Integrated Townships and Large Developments

Large, integrated townships are emerging as a defining feature of the next real estate cycle. These developments offer housing, retail, social infrastructure, and open spaces within a single ecosystem.

In 2026, township-led growth is expected to accelerate across metro peripheries and emerging corridors, reducing dependence on fragmented standalone projects and enhancing liveability standards.

3. End-User Dominance and Market Stability

Speculative activity remained limited in 2025, and this pattern is expected to continue in 2026. The market is increasingly shaped by genuine homebuyers who prioritize usage, safety, and long-term value.

This end-user dominance supports sustainable price growth, better project absorption, and lower volatility across cities.

4. Financing Environment and Affordability

While interest rates remained relatively stable through much of 2025, expectations of gradual easing have strengthened buyer sentiment. Even marginal reductions in borrowing costs can improve affordability and unlock deferred demand, especially in mid-income and upgrade segments.

Sector-Wise Real Estate Trends Across India for 2026

Residential Real Estate

Residential housing remains the backbone of the Indian real estate sector. In 2026, demand is expected to remain strong in metro cities, driven by employment stability, urban migration, and lifestyle aspirations.

Key residential themes include:

Growing preference for 2.5, 3, and larger BHK configurations.

Demand for gated communities and managed townships.

Increased importance of developer reputation and delivery track record.

Commercial Real Estate

The commercial office sector enters 2026 with renewed momentum. Technology services, Global Capability Centers, and flexible workspaces are driving absorption across major cities.

Large-format campuses, ESG-compliant buildings, and mixed-use office developments are gaining traction. Office growth continues to act as a strong indirect driver for residential demand in surrounding micro-markets.

Retail and High-Street Development

Retail real estate is evolving toward experience-driven formats. Rather than standalone malls, retail is increasingly embedded within residential townships and mixed-use developments.

High-street retail linked to residential catchments is expected to perform better than isolated retail assets, supported by consistent footfall and daily-use consumption.

2025: A Landmark Growth Year for Krisala Developers

2025 emerged as a defining year for Krisala Developers, marked by rapid expansion, strategic collaborations, and strong brand-building initiatives. The year reflected the company’s evolution from a real estate developer into a diversified, future-focused organization.

Overall Krisala Growth and Brand Activities in 2025

Krisala expanded its footprint across multiple real estate verticals, reinforcing its presence across residential developments, commercial and studio formats, integrated townships, and plotted developments. This diversified launch strategy strengthened the brand’s ability to cater to evolving lifestyle needs and investment preferences across markets.

Major growth milestones:

Launch and announcement of the 105-acre Krisala x Hiranandani Township, North Hinjawadi, introducing large-scale integrated living.

Strategic collaboration with the Della Group for the world’s first resort-style township development.

Planning of the 40-acre Della Racecourse as part of the township ecosystem, enhancing lifestyle and experiential value.

Launch of “Krisala Land of Dreams”, a 63-acre plotted development in the Vadgaon–Lonavala growth corridor, inspired by a Bali-themed lifestyle concept.

Opening of Krisala’s first corporate office in Mumbai, marking a significant expansion beyond Pune.

Launch of the Krisala Konnect App for customers

Krisala x Hiranandani Township

The township witnessed an exceptional market response and strong positioning as a lifestyle-led development.

Key highlights:

1119 homes sold out in just 5 hours with 5000+ attendees at the launch event

Clear resort-style township positioning through collaboration with the Della Group.

Focus on lifestyle-led planning with integrated, future-ready amenities.

Collaboration with TERI (The Energy and Resources Institute) to address AQI challenges and promote sustainability, green living, and a clean, eco-friendly township environment.

Organizational and Development Milestones

Team strength grew from 273 professionals in January 2025 to 460 + professionals by December 2025.

Over 14 years of real estate experience.

20+ projects completed across residential segments.

2.5 million sq ft of area delivered.

10.5 million sq ft currently under development.

A growing base of 8,000+ happy families.

This growth underscores the company’s execution capability and long-term development vision.

Initiatives Beyond Real Estate (2025)

Beyond real estate, Krisala strengthened its brand presence through strategic partnerships and sports initiatives.

Brand-led initiatives:

Appointed as the Official Realty Partner of MPL 2025, enhancing national visibility.

Ownership of the professional basketball team Krisala PCMC Stallions.

Participation in the Krisala ABC Pro Basketball League, Season 4.

The Future of Krisala Developers: Looking Beyond 2025

The momentum of 2025 is shaping a clear and structured roadmap for the years ahead.

2026 Vision and Market Presence: A Year Marked by Quality

Krisala Developers will be actively present across all major real estate verticals, strengthening its role as a diversified developer across residential apartments, commercial developments, integrated townships, plotted developments and redevelopments. The focus remains on delivering well-planned, scalable, and long-term value-driven developments across segments, aligned with evolving buyer expectations and urban growth patterns.

Expansion Into Other Cities

Krisala Developers is also preparing for strategic expansion beyond Pune, targeting cities with strong infrastructure pipelines, employment growth, and long-term urban potential.

The expansion approach remains selective and disciplined, prioritizing:

Sustainable market demand

Scalable land opportunities

Consistency in delivery and quality standards

Portfolio Diversification and Long-Term Direction

Alongside apartments and plotted developments, future projects are expected to reflect a broader mix of residential formats and integrated components. This approach enables balanced growth across market cycles while reinforcing the company’s commitment to quality-led growth, execution discipline, sustainable scale, and long-term brand trust.

Conclusion: From a Defining Year to a Long-Term Vision

The Indian real estate market in 2025 demonstrated maturity, resilience, and a decisive shift toward quality-led growth. Integrated townships, premium housing, and execution discipline emerged as defining success factors.

For Krisala Developers, 2025 was a landmark year that strengthened organizational capability and market trust. With the upcoming Phase 2 of the Krisala x Hiranandani township, a growing focus on plotted developments, and expansion into new cities, the journey ahead is aligned with the future direction of Indian real estate.

The foundations laid in 2025 are now shaping a long-term vision focused on quality, scale, sustainability, and enduring value creation.

Sources

https://www.business-standard.com/industry/news/housing-sales-top-7-cities-fall-14pc-2025-value-rises-luxury-anarock-125122600341_1.html

https://www.hindustantimes.com/real-estate/housing-sales-in-the-top-seven-indian-cities-fall-14-in-2025-mumbai-pune-and-hyderabad-hit-the-most-101766746249212.html

https://m.economictimes.com/industry/services/property-/-cstruction/private-equity-capital-in-indian-real-estate-reaches-6-7-billion-in-2025/articleshow/126247353.cms?

https://maharashtratimes.com/business/real-estate-news/house-prices-increase-in-2026-or-consumers-get-benefit-know-what-experts-predict-about-real-estate-market/articleshow/126176934.cms?