Developers Confident As Residential Real Estate Set To Maintain Momentum In FY26

Leading real estate developers in India remain optimistic about the residential sector’s performance in FY26, expecting sustained demand despite challenges like stock market volatility and global economic uncertainties.

Real Estate Record-Breaking Sales In FY25

Major developers such as Godrej Properties, Macrotech Developers (Lodha), and Signature Global reported record-high bookings in FY25.

Godrej Properties posted the highest sales by any developer in the country during the year, reflecting continued strong demand for residential properties.

Prestige Estates Projects also witnessed an impressive performance. Chairman and Managing Director Irfan Razack revealed that recent launches in Bengaluru, Hyderabad, and Mumbai brought in over ₹5,000 crore in bookings within a month.

The company now plans to double its project launches in FY26.

End-User Demand Driving Growth

Developers credit the ongoing demand to strong end-user interest and the expansion of Global Capability Centres (GCCs) in India, which are generating substantial employment.

They believe these factors will continue to drive growth, largely unaffected by stock market fluctuations.

Amit Kumar Sinha, Managing Director at Mahindra Lifespace Developers, emphasized that most homebuyers are long-term end users who make thoughtful purchasing decisions.

The company saw a 41% increase in pre-sales during the first nine months of FY25.

Signature Global Chairman Pradeep Aggarwal also remains confident, highlighting the company’s highest-ever sales of ₹10,290 crore in FY25. He noted that rising incomes, a preference for modern homes, and recent policy support are all contributing to a healthy market outlook.

Market Stabilization Amid Investor Caution

Despite positive developer performance, housing sales across India’s top seven cities declined 28% year-on-year in Q4. Experts point to investor caution due to rising home prices and global economic headwinds.

Many investors, particularly in the luxury segment, have taken a wait-and-watch approach since mid-2024.

However, new project launches are still performing well, and developers see no major signs of reduced buyer interest.

Continued Surge In Luxury Housing

The premium and luxury housing segments continue to thrive, with high-net-worth individuals (HNIs) and ultra-HNIs driving demand.

India’s growing population of wealthy young professionals is playing a key role in the surge, and developers expect this trend to remain strong in 2025 and beyond.

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