India’s real estate industry significantly impacts the nation’s economy, encompassing housing, construction, commercial projects, logistics, and digital infrastructure. The ASSOCHAM-Knight Frank report reveals that real estate and home ownership have contributed approximately 7% to India’s annual GVA over the last ten years.
In 2025, construction provided about 12% of total employment, showing the sector’s role in driving investment, job creation, and economic development nationwide.
Growth in Emerging Cities and Affordable Housing Needs
The report stresses the importance of expanding real estate activities beyond India’s eight primary markets. As infrastructure and economic activities grow, emerging cities can accommodate more residential, commercial, and industrial projects.
Land Policy Reforms and Institutional Funding
Enhancing land governance and access to capital is key for future real estate development. Implementing digital land records, land pooling, redevelopment, and transit-oriented projects can optimize land use.
Streamlining approvals and standardizing processes can reduce project delays. Additionally, the report highlights REITs and other institutional investment avenues as vital funding sources for real estate ventures.
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Industry leaders like Robin Mangla, President of M3M India, emphasize real estate’s growing role in India’s economic expansion. Residential and commercial spaces are evolving to meet changing demands.
Mangla stated, “The report highlights that homes priced at ₹ 10 million and above accounted for 54% of residential sales in H1 2026, reflecting the growing preference for higher-value housing. In commercial real estate, India’s office stock has reached 1.05 billion sq ft, while GCCs (Grade A Commercial Complexes) contributed 43% of office transactions in H1 2026.”
Deepak Sangwan, Chairman of Origen Realty, noted that infrastructure, economic activity, and shifting residential preferences are transforming India’s real estate environment.
Prospects for the Future
As India progresses toward Viksit Bharat 2047, which refers to the country’s development goals, the real estate sector is expected to play a key role. Established markets such as Sector 88A stand to benefit from stronger integration with Global City, Vision City and the Rewari-Pataudi Highway, further strengthened by the operationalisation of Dwarka Expressway.
