Despite the concerns, analysts believe that while geopolitical tensions may affect investor sentiment in the short term, Dubai’s real estate market has historically demonstrated strong resilience and an ability to recover quickly from external shocks.

Record-Breaking Momentum Heading Into 2025

Dubai entered the current geopolitical phase from a position of exceptional strength. In 2025, the emirate recorded nearly AED 917 billion (around $250 billion) in real estate transactions, the highest ever in its history. Transaction volumes exceeded 270,000 deals, highlighting strong investor participation and deep market liquidity.

Residential real estate played a dominant role in this surge. Nearly 200,000 residential transactions valued at approximately AED 538 billion were recorded during the year. Since 2021, residential property prices in Dubai have risen by nearly 60–75%, making it one of the strongest post-pandemic housing cycles globally.

According to Dr. Prashant Thakur, Executive Director & Head – Research & Advisory at ANAROCK Group, the current geopolitical uncertainty must be evaluated in the context of these strong market fundamentals.

Investor Psychology: Confidence Matters

Markets experiencing strong expansion often react to geopolitical shocks differently compared to weaker markets. Instead of immediate price corrections, the first signs of disruption typically appear in the form of slower transaction activity and cautious investor behaviour.

However, the current conflict introduces a new dimension. Reports of attacks reaching parts of the UAE challenge Dubai’s long-standing perception as a safe economic and investment hub in the Middle East.

Even though the physical damage from these incidents has been limited, the psychological impact on global investors could influence short-term investment decisions.

Off-Plan Sales Could Feel the First Impact

Dubai’s property market relies heavily on international investors and expatriate buyers. Any perception of rising geopolitical risk often pushes investors toward a “wait-and-watch” approach.

This sentiment shift usually impacts off-plan property purchases first, as these investments involve longer construction timelines and greater speculative risk. Developers launching new projects could therefore see slower booking velocity if uncertainty persists.

Ready properties and long-term rental assets, however, tend to remain relatively stable during such periods.

Tourism Could Become a Transmission Channel

Tourism represents another potential channel through which geopolitical tensions could affect Dubai’s property market.

The broader Middle East tourism industry is estimated to be worth nearly $367 billion annually. Analysts suggest that prolonged geopolitical instability could result in 23–38 million fewer visitors, translating into a potential $34–56 billion decline in tourism revenues across the region.

If tourism sentiment weakens significantly, the immediate impact could be seen in:

• Short-term rental apartments
• Hospitality properties
• Retail spaces in tourist-heavy districts

However, Dubai’s housing demand is not driven by tourism alone. The emirate’s large expatriate population continues to create a stable underlying demand for residential housing.

A Highly Diversified Global Investor Base

One of Dubai’s biggest structural strengths is the diversity of its investor base.

Buyers from over 150 nationalities participate in the emirate’s property market, making it one of the most internationalised real estate ecosystems in the world. Additionally, expatriates account for approximately 88–89% of the UAE’s population, creating consistent housing demand across multiple price segments.

This diversity reduces the risk of the market being overly dependent on any single investor group or economic region.

Indian Investors Remain a Key Pillar

Indian investors play a particularly important role in Dubai’s property market.

Indian nationals account for around 20–22% of all foreign property purchases, making them the largest international buyer group in the emirate. Several factors drive this strong investment interest, including:

• Geographical proximity between India and the UAE
• The stability of the UAE dirham’s peg to the US dollar
• Attractive rental yields ranging between 6% and 9%

These returns are significantly higher than rental yields in many global gateway cities.

Growing Presence of Indian Developers

Indian-origin developers have also started expanding their presence in Dubai’s real estate market.

While the sector continues to be dominated by regional giants such as Emaar Properties, DAMAC Properties, Nakheel, and Meraas, Indian developers are gradually increasing their footprint.

Companies like Sobha Realty and Danube Properties have already launched several residential developments in the emirate.

Sobha Realty has developed the Sobha Hartland community, spanning nearly 8 million square feet, while Danube Properties has launched over 20 residential projects across Dubai.

Other Indian developers, including Shapoorji Pallonji Real Estate and Casagrand, have also entered the Dubai market with premium housing projects.

Lessons from Past Market Cycles

Dubai’s real estate market has experienced several major cycles over the past two decades.

During the Global Financial Crisis, property prices in Dubai fell by 50–60%, and the market took nearly six to seven years to fully recover.

Another correction occurred between 2014 and 2019, when prices declined by 25–30%, largely due to falling oil prices and oversupply in the housing market.

More recently, the COVID-19 pandemic caused only a short-lived disruption. Dubai’s real estate market recovered within 12–18 months, highlighting its improved resilience.

Short-Term Caution, Long-Term Strength

The current geopolitical tensions are likely to introduce short-term caution among investors, particularly in speculative segments such as off-plan projects. Transaction volumes may moderate as buyers assess evolving geopolitical risks.

However, Dubai’s strong fundamentals—including its global investor base, policy flexibility, high rental yields and status as an international financial and lifestyle hub—continue to provide structural support to its property market.

Ultimately, the key question may not be whether geopolitical tensions affect Dubai’s real estate sector, but how quickly investor confidence returns once the geopolitical environment stabilises.

If historical patterns are any guide, Dubai’s property market has repeatedly demonstrated its ability to bounce back faster than many global real estate markets.

Also Read: Chennai-Based Real Estate Company Sends 1,000 Employees on All-Expenses-Paid Trip to Spain

The post Iran Conflict Puts Dubai Real Estate Under Watch: Sentiment Shock or Structural Risk? appeared first on Square Feat India.

For homebuyers, the biggest immediate impact is stability in home loan Equated Monthly Instalments (EMIs). Since most floating-rate home loans are linked to external benchmarks like the repo rate, today’s hold means no upward revision in borrowing costs. Existing borrowers avoid any EMI shock, while new buyers gain predictability to plan purchases without fear of sudden rate hikes.

Industry experts and real estate leaders have welcomed the move for providing much-needed certainty in an environment of rising economic optimism post-Union Budget 2026-27, improved trade agreements, and infrastructure momentum.

Prashant Sharma, President, NAREDCO Maharashtra, noted: “The RBI’s decision to maintain the repo rate at 5.25% provides much-needed stability to the real estate sector… policy continuity will help sustain housing demand and enable developers to plan investments with greater confidence.”

Kaushal Agarwal, Chairman, The Guardians Real Estate Advisory, added: “Stable interest rates will play a crucial role in sustaining homebuyer sentiment and investment activity… reinforcing real estate’s appeal as a stable, long-term asset class.”

Kamlesh Thakur, Co-Founder & Managing Director, Srishti Group, highlighted: “This policy stability brings much-needed clarity on financing costs… we anticipate sustained momentum across residential segments, particularly in infrastructure-driven growth corridors.”

Shilpin Tater, Managing Director, Superb Realty, said: “The RBI’s neutral stance… will support occupier and investor sentiment, particularly for long-gestation commercial projects that rely on long-term cost visibility.”

Shraddha Kedia-Agarwal, Director, Transcon Developers, emphasized: “Stable borrowing costs… create a supportive environment for housing demand, especially in metropolitan markets… This policy continuity will help sustain residential demand and support long-term housing affordability.”

Dhruman Shah, Promoter, Ariha Group, observed: “The continued pause on interest rates provides much-needed predictability… positioning the sector for stable, long-term growth.”

Nihar Jayesh Thakkar, Founder, The Mandate House Pvt. Ltd., stated: “Unchanged interest rates combined with a stronger growth outlook enhance investor confidence across asset classes.”

Samantak Das, Chief Economist and Head – Research and REIS, India, JLL, provided deeper insight: “The unchanged rate… preserves stability in borrowing costs, supporting consumer spending, housing demand, and business investment… The residential market… experienced a sales slowdown in 2025… the combination of accelerated GDP growth, moderating housing price appreciation, and the prospect of additional rate cuts is expected to revive housing sales volumes in 2026.”

Anuj Puri, Chairman – ANAROCK Group, pointed out a balanced view: “RBI’s decision… means that home loan EMIs will not change… This will keep buyers engaged but does nothing to lift demand further… A rate cut would have potentially brought at least some fence-sitters back to the market.” He noted subdued affordable housing trends and called for targeted fiscal measures.

Manju Yagnik, Vice Chairperson of Nahar Group and Senior Vice President of NAREDCO-Maharashtra, said: “An unchanged rate has ensured that EMIs on floating-rate loans remain steady, offering predictability… This clarity on borrowing costs has supported affordability and enabled homebuyers… to plan long-term purchases with greater confidence.”

Dharmendra Raichura, VP and Head of Finance, Ashar Group, concluded: “An unchanged rate environment brings stability to funding costs… From a homebuyer’s perspective, predictable lending rates preserve EMI visibility and reinforce purchase confidence.”

While the hold shields EMIs from rises and supports overall sector momentum amid a robust 7.4% GDP growth outlook for FY26, experts note that affordability challenges persist in segments like affordable housing. Many anticipate potential future cuts if inflation remains controlled, which could further ease EMIs.

This policy continuity underscores the RBI’s calibrated approach—balancing growth support with inflation vigilance—offering homebuyers a window of EMI stability to make informed decisions in a strengthening economy.

Also Read: RBI Monetary Policy – Can the Housing Market Absorb Another Hike?

The post How RBI’s Unchanged Repo Rate at 5.25% Keeps Home Loan EMIs Steady: A Boost for Homebuyers’ Financial Planning appeared first on Square Feat India.

India’s housing market stands at a critical inflection point. While luxury home sales are breaking records and property prices continue to rise, the foundation of inclusive growth — affordable housing — is steadily eroding. The risk is no longer theoretical. India is fast heading towards a two-tier housing market, where luxury homes flourish while millions of middle- and lower-income households are priced out of ownership altogether.

Union Budget 2026 could prove decisive. Without strong, targeted policy intervention, the affordability gap will only widen, making homeownership increasingly unattainable for a vast section of urban India.

The Market Paradox: Growth That Masks a Crisis

At first glance, residential real estate appears robust. According to ANAROCK Research, the total value of homes sold in 2025 touched nearly ₹6 lakh crore, marking a 6% year-on-year increase. Institutional investments in real estate also surged, reaching USD 8.9 billion in 2024, a sharp 51% rise over the previous year.

However, these headline numbers conceal a deeper structural problem.

While the value of sales rose, the number of homes sold declined by 14% in 2025. The growth is being driven almost entirely by the luxury segment. Luxury housing sales to HNIs, NRIs, and wealthy professionals jumped 170% in 2024, transforming homes into investment instruments and inflation hedges.

Affordable housing, meanwhile, has fallen into a prolonged slump.

Affordable Housing: From Backbone to Bottleneck

Affordable housing’s share of the residential market has plunged from 38% in 2019 to just 18% in 2025, according to ANAROCK Research. This is not a cyclical slowdown but a structural collapse.

In 2018, over 52% of new homes launched in India’s top seven cities were priced below ₹50 lakh. By 2025, that figure has shrunk to just 17%. In metros, homes under ₹50 lakh now account for only one in six new launches.

The consequence is a rapidly widening urban housing shortage. India currently faces a deficit of 9.4 million urban homes, a number that could escalate to 30 million units by 2030 without corrective policy measures.

The Homebuyer Squeeze Is Real

For ordinary households, affordability has deteriorated sharply. The EMI-to-income ratio for homebuyers has risen from 43% in 2020 to nearly 60% today, well above sustainable thresholds. For middle-income families, the ratio has climbed from 28% to 40% over the same period, driven by rising property prices and higher interest rates.

ANAROCK’s latest Consumer Sentiment Survey reveals the scale of the problem. In Bengaluru alone, 42% of prospective buyers seeking homes under ₹1 crore have been priced out, despite demand for budget housing rising 13% year-on-year.

This is not a matter of preference but of compulsion — buyers simply cannot afford what the market offers.

Why Developers Are Abandoning Affordable Housing

The crisis is not demand-driven. It is rooted in the economics of real estate development.

Affordable housing typically offers 10–12% margins, while luxury and premium projects yield 25–30% or more. With land prices soaring, construction costs for steel, cement, and skilled labour remaining elevated, and approval timelines growing longer, affordable projects have become financially unviable.

Developers are responding rationally. Many have rebranded mid-income projects as premium offerings or exited the affordable segment altogether.

Compounding the issue is an outdated policy framework. The current definition of affordable housing — capped at ₹45 lakh, a threshold fixed in 2017 — bears little resemblance to today’s market realities. In Mumbai’s peripheral areas, a modest 600 sq ft apartment now costs ₹60–75 lakh. Pune, Bengaluru, and Delhi-NCR face similar mismatches.

Worse, developers building within this outdated cap are denied critical tax benefits.

The Missing Incentive: Section 80-IBA

The 100% tax holiday under Section 80-IBA, which played a catalytic role between 2016 and 2021, expired four years ago and has not been revived.

During its tenure, Section 80-IBA bridged the margin gap between affordable and mid-income housing, encouraging widespread developer participation. Its absence has sharply curtailed new launches.

Each year without this incentive potentially leaves 1.5 million households unable to transition into formal homeownership, increasing financial exclusion and informal housing growth.

A time-bound revival of Section 80-IBA, applicable to projects approved over a 24–36 month window, would be fiscally defensible and immediately impactful.

Infrastructure: The Silent Catalyst

Where policy has lagged, infrastructure has advanced. Metro rail expansions, expressways, ring roads, airports, and logistics corridors have consistently unlocked new housing markets.

Cities like Bengaluru, Hyderabad, NCR, and Pune demonstrate a clear pattern: infrastructure precedes real estate growth. Improved connectivity opens peripheral areas, attracts developers, and makes housing more affordable through land availability.

Budget 2026 must accelerate last-mile urban infrastructure, particularly metro extensions, suburban rail, and peripheral connectivity, to expand the affordable housing footprint.

Redefining Affordability for Urban India

The ₹45 lakh affordability cap is no longer viable. Budget 2026 should revise these thresholds based on city-specific realities:

• Mumbai & MMR: ₹85 lakh
• Delhi-NCR, Bengaluru, Pune, Hyderabad: ₹75 lakh

These limits reflect actual land and construction costs, not luxury creep. Crucially, carpet area norms must remain unchanged to prevent misuse.

Raising the price cap while retaining size limits could double the affordable housing supply, increasing its share of new launches from 18% to over 40%.

Strengthening Homebuyer Support Through CLSS

The Credit-Linked Subsidy Scheme (CLSS), reintroduced under PMAY-U 2.0, remains underutilized. Budget 2026 should strengthen it by:

• Increasing subsidy rates to offset higher interest costs
• Raising loan limits to ₹8–10 lakh for EWS/LIG and ₹15–18 lakh for MIG
• Simplifying disbursement to ensure faster, frictionless delivery

An annual CLSS outlay of ₹10,000–15,000 crore could support 1.5–2 million first-time buyers over five years — a direct, targeted intervention.

Budget 2026: A Defining Moment

India’s housing market stands at a crossroads. One path leads to deepening inequality — luxury homes for the wealthy and shrinking ownership for the middle class. The other promises balanced, inclusive growth powered by affordable housing, infrastructure, and smart incentives.

The policy tools are known. The need is urgent. Budget 2026 must act decisively, or the cost of inaction will be borne by millions of Indian families locked out of homeownership.

Also Read: 35 Lakh Homes, ₹50 Lakh Crore Investment: Maharashtra Unveils Massive Housing Push for MMR

The post How Budget 2026 Can Revive Affordable Housing in India appeared first on Square Feat India.

A repo rate cut is one of the quickest ways to soften the cost of borrowing. For homebuyers, this translates into lower EMIs, especially because most home loans today are linked to external benchmark rates that transmit policy changes faster than earlier systems. If banks pass on the full 25 bps cut, borrowers can expect a meaningful drop in monthly EMIs, improving affordability across segments.

Lower EMIs Can Revive Demand — Especially in Affordable & Mid-Income Housing

Real estate experts view this decision as well-timed and transformational.

Shishir Baijal – Knight Frank India

“We welcome the RBI’s positive move to cut rates by 25 bps, as it signals growing confidence that inflation will remain low on a durable basis. The reduction in borrowing costs should offer timely relief to the real estate sector… We hope this will be instrumental in boosting affordable and mid-income housing sales, which have been witnessing a sequential decline over the past few quarters.”

Baijal’s point about sequential declines is critical—end-user demand in these segments had begun softening as property prices rose across major markets.

Price-Rise Pressure Meets a Rate-Cut Cushion

According to ANAROCK Research, average housing prices across India’s top 7 cities jumped nearly 10% in 2025. For many buyers, this created a affordability mismatch—even if incomes were rising.

Anuj Puri – ANAROCK Group

“The RBI’s decision to cut the repo rate by 25 bps is a distinct positive… this move further sweetens the value proposition for homebuyers, particularly in the affordable and mid-income segments which are highly sensitive to interest rate fluctuations.”

“This rate cut provides a critical cushion to affordability… encouraging aspiring homebuyers who had paused their decisions due to price hikes to finally take the plunge.”

Puri also highlights a crucial factor: swift transmission.

“If banks swiftly pass on this rate cut to borrowers, we anticipate a renewed surge in sales velocity carrying firmly into Q1 2026.”

Luxury housing is expected to stay strong irrespective of the rate cut, but the biggest boost will likely come from fence-sitters in the mid and affordable categories.

Developers See This as a Sentiment Lifter for Both Buyers & Builders

Manju Yagnik – Nahar Group / NAREDCO Maharashtra

“A 25 basis point rate cut at this stage will meaningfully support homebuyer sentiment and improve affordability across categories. Demand has remained resilient despite elevated prices, and a reduction in borrowing costs will give fence sitters the confidence to move ahead with their purchase decisions.”

Yagnik adds that developers too gain from a softer rate environment, especially with persistent inflationary pressures in construction materials.

“The real estate sector has been navigating higher input costs… so a softer rate environment will ease financial pressure for both buyers and developers.”

Rupee Depreciation Adds Another Layer to the Demand Story

Dharmendra Raichura – Ashar Group

“The rate cut to 5.25% gives an immediate boost to affordability for home-buyers… At the same time, the depreciation of the rupee makes imported building materials costlier — a challenge for developers’ margins.”

Interestingly, this same rupee weakness creates a positive effect too:

“For NRIs… the weaker rupee makes Indian real estate more attractive and affordable, balancing demand dynamics.”

Developers who manage cost inflation well stand to gain from increased NRI participation and a broader buyer base.

A Macroeconomic Signal of Confidence — With Direct EMI Relief

Dr. Samantak Das – JLL India

“The RBI’s decision to cut the repo rate by 25 bps is a powerful, proactive signal that strategically leverages India’s macroeconomic strength — a robust 8.2% Q2 GDP expansion alongside record-low inflation.”

Das stresses that this is not a reactive move but a strategic push to make growth more inclusive.

“For the residential sector, this is a direct boost to affordability… Given the high penetration of external benchmark-linked loans, the transmission to homebuyers is expected to be quick, providing tangible EMI relief.”

He also notes that India saw price resistance in the affordable and mid-segment categories this year, with projected residential sales 8–9% lower than last year in the top cities.

The repo cut, therefore, is seen as a catalyst:

“This move… will activate the crucial segment of first-time affordable and mid-market homebuyers who have been waiting on the sidelines.”

Das expects demand revival not just in metros but across India’s Tier 2 and Tier 3 cities as well.

What This Means for You: Lower EMIs, Higher Eligibility

If banks pass on the full 25 bps cut:

• Your home loan EMI will reduce across floating-rate loans.
• Loan eligibility increases because your EMI-to-income ratio improves.
• First-time buyers in mid-income segments will find it easier to enter the market.
• Developers get relief through better sales momentum and sentiment stability.

This rate cut has arrived at a moment when the market needed a confidence push—and it may very well carry the housing sector with stronger momentum into 2026.

Also Read: RBI Repo Rate Hike May impact Home buyer sentiments

The post Repo Rate Cut to 5.25%: How Your Home Loan EMI Will Now Fall appeared first on Square Feat India.

The platform integrates both generative AI and predictive AI/ML and has already powered 700 home sales worth ₹750 crore across more than 80 developer projects.

The launch comes at a time when India’s residential segment faces a 9% year-on-year decline in Q3 2025 primary sales, underlining a growing need for technology-driven sales efficiency.

Nine AI Tools Across Three Suites

Developed over two years, ANAROCK.AI features nine AI tools classified into three categories:

1. Genie Suite (Generative AI)

• Walk-in Genie
• CP Genie
• ORM Genie
• Referral Genie

These tools offer chatbot and voice bot–based engagement for customers and channel partners.

2. Astra Suite (Predictive AI)

• Astra Platinum
• Astra Phoenix
• Astra Hire
• Astra Sales Boost

These tools use ANAROCK’s proprietary data to score leads, revive dropped opportunities, and optimize sales team performance.

3. CP 360

A channel partner–focused module with CP Ranker, CP Genie, and Walk-in Genie to boost channel partner contribution.

Proven Impact on Sales Velocity

Sunil Mishra, Chief AI & Strategy Officer at ANAROCK Group, noted strong early results.

“Four core tools have been operational since 2024 across 80+ projects, contributing to 700 home sales valued at ₹750 crore—about 10–15% of the total sales in these projects,” he said.
“In a recent Chennai project, AI-enabled processes accounted for nearly 60% of total bookings.”

The platform’s predictive model shows that the top 10% of AI-identified leads account for 40–60% of total bookings.

Other significant outcomes include:

• Astra Phoenix reviving 8–9% of dead leads, contributing to 5–6% of bookings
• CP Ranker identifying top 5% channel partners who generate 40–50% of bookings
• Walk-in Genie engaging dropped and night-time leads 24/7

Why Real Estate Needs AI Now

ANAROCK data shows:

• Q3 2025 sales: 97,080 units (down from 1,07,060 in Q3 2024)
• Sales value: up 14% to ₹1.52 lakh crore
• Prices: up 9% YoY to ₹9,105/sq.ft

This market paradox—lower unit volumes but higher revenue—signals a shift toward premium housing and selective high-intent buyers.

According to Anuj Puri, Chairman, ANAROCK Group:

“Developers are competing for a smaller set of high-intent buyers focused on premium projects. Identifying and engaging this audience efficiently requires AI-driven tools.”

Millennials and Gen Z Are Redefining Homebuying

The market is undergoing a demographic shift:

• 80%+ homebuyers start their property search online
• Millennials + Gen Z will form 60% of India’s homebuyer base by 2030
• 73% of active seekers engage with RE platforms 3+ times per week

These digital-native customers expect:

• Virtual tours
• Instant responses
• AI-powered, personalized recommendations
• Multi-channel engagement

ANAROCK.AI aims to deliver precisely this experience, blending predictive scoring with 24/7 generative engagement.

A Platform Built on India’s Largest Residential Sales Dataset

ANAROCK.AI’s predictive engine leverages ANAROCK’s own historic transaction and behaviour dataset:

• 90,000+ unit sales
• 950+ projects covered
• $12 billion in cumulative residential sales facilitated
• Across metros, Tier 2/3 cities, and all price bands

The platform is expected to significantly enhance lead conversion, reduce marketing costs, and speed up sales cycles for developers across India.

The post ANAROCK Launches AI-Driven Home Sales Platform Backed by 90,000+ Unit Data; Targets Millennials & Gen Z Buyers appeared first on Square Feat India.

India’s housing market may touch a record ₹6.65 lakh crore in total sales value by the end of FY26 — but the number of homes sold may barely rise, according to fresh data from ANAROCK Research & Advisory.

The report points to a sharp disconnect between rising sales values and stagnant volumes, as luxury and high-ticket homes dominate demand in major cities.

Sales Value Soars, Volume Stalls

In FY25, the top seven cities collectively sold 4.22 lakh housing units worth ₹5.59 lakh crore — a 6% jump in value despite a 14% drop in sales volume.
For FY26, ANAROCK estimates that overall housing sales value will grow nearly 20% year-on-year, surpassing ₹6.65 lakh crore, while unit sales may grow no more than 4%.

“After peaking in FY24, overall absorption has slowed amid global and domestic headwinds,” said Dr. Prashant Thakur, Executive Director and Head of Research at ANAROCK.
“However, the total value of homes sold continues to climb as buyers shift to premium and luxury segments.”

Half-Year Numbers Already Cross 50% of FY25 Levels

During H1 FY26, over 1.93 lakh units were sold across the top seven cities for a combined ₹2.98 lakh crore, already 53% of FY25’s total sales value.

City performance varied sharply:

• NCR achieved 74% of its FY25 sales value in just six months.
• Chennai followed at 71%, while MMR lagged at 45% of last year’s total.

City-Wise Breakdown: Sharp Contrasts

• NCR: ~29,175 units sold in H1 FY26 worth ₹75,859 crore, compared to FY25’s 58,775 units (₹1,02,810 crore).
• Chennai: ~11,670 units sold worth ₹12,370 crore (FY25: 17,765 units, ₹17,387 crore).
• MMR (Mumbai Metropolitan Region): ~61,540 units sold worth ₹1,00,000+ crore (FY25: 1.44 lakh units, ₹2,23,220 crore).
• Bengaluru: ~29,955 units sold worth ₹43,627 crore (FY25: 62,440 units, ₹79,819 crore).
• Pune: ~32,030 units sold worth ₹30,324 crore (FY25: 74,200 units, ₹66,058 crore).
• Hyderabad: ~22,345 units sold worth ₹30,646 crore (FY25: 48,980 units, ₹59,243 crore).
• Kolkata: ~7,655 units sold worth ₹5,429 crore (FY25: 16,580 units, ₹10,753 crore).

Luxury Segment Leads the Charge

Nearly 42% of all new housing supply in H1 FY26 was in the luxury and ultra-luxury segments, ANAROCK data shows.
The steady appetite for premium homes — especially among high-income end-users and NRIs — has offset the slowdown in mid- and affordable housing categories.

“Luxury continues to drive value growth, while affordability challenges have limited momentum in the lower segments,” Dr. Thakur noted.
Average residential prices across cities have risen sharply, adding further pressure on first-time homebuyers.

Market Outlook

ANAROCK projects that the full-year FY26 performance will reflect a “value-led growth” cycle rather than volume-led expansion.
While housing demand remains healthy, the mix is shifting — fewer homes are being sold, but at much higher ticket sizes.

Also Read: Housing Sales Plummet by 28% in Q1 2025 Across India’s Top 7 Cities

The post Home Sales May Hit ₹6.65 Lakh Crore in FY26 — But Volumes Could Flatline appeared first on Square Feat India.

Despite a relatively late start with its first listing in 2019, the Indian REIT market has demonstrated strong fundamentals. “Indian REITs are late to the party, but now lead the dance,” said Shobhit Agarwal, CEO of ANAROCK Capital. He noted that the average distribution yields are competitive with fixed-income instruments but offer the additional benefit of potential capital appreciation.

Currently, Indian REITs account for just 20% of institutional real estate, significantly lower than the penetration in the US (96%), Singapore (55%), and Japan (51%). This is largely due to the sector’s concentration in Grade A commercial office assets. The report highlights significant untapped potential, noting that out of a total 520 million sq. ft. of REIT-worthy office stock in India’s top seven cities, only 32% (166 million sq. ft.) is currently listed.

The future growth of the sector is expected to be driven by diversification into new asset classes. “Over 60% of India’s REIT market value today rests with very small set of players,” stated Mr. Shekhar Patel, President of CREDAI, adding that REITs will eventually expand into retail, logistics, housing, and other new-age assets. The report predicts that as the market matures, India’s REIT penetration could reach 25–30% of institutional real estate by 2030.

A key growth area is industrial and data centre REITs, mirroring a global trend. Globally, data centre REITs were valued at around USD 250 billion in 2024 and are projected to double within seven years. India is showing strong indicators in this direction, with a 60% year-over-year surge in industrial and logistics leasing in the first half of 2025 and a threefold increase in institutional investment in the sector to USD 2.5 billion in 2024.

The proactive regulatory environment, shaped by SEBI since 2014, has been crucial in building investor confidence. Progressive reforms, including reduced lot sizes and dividend tax exemptions introduced in 2025, have enhanced transparency and retail participation. However, the report notes that dividend taxation rates in markets like the USA and Singapore are lower, making them more attractive for retail investors compared to India.

Overall, the Indian REIT market is on a strong growth trajectory, supported by deep office market demand and a stable regulatory framework, making it a compelling investment avenue for both domestic and global investors.

Also Read: Data Benchmarking Institutions Launched to Empower Indian REIT Investors

The post Indian REITs Deliver 6-7% Yields, Outperforming Global Peers; Market Cap to Hit $25 Bn by 2030 appeared first on Square Feat India.

Rs 50L–1Cr Homes Lead Buyer Demand

Between 2022 and 2024, homes priced between ₹50 lakh and ₹1 crore consistently held the largest share of buyers:

• 2022: ~28%
• 2023: ~32%
• 2024: ~35%

At the same time, demand in the up to ₹25 lakh budget category fell from 16% in 2022 to 14% in 2024. The ₹1–2 crore segment saw steady growth, from 14% to 17% in the same period.

Shift Toward Premium Properties

According to Aayush Puri, Head – ANAROCK Channel Partner & ANACITY, there has been a notable rise in buyers opting for premium homes above ₹1 crore — jumping from 18% in 2023 to 32% in 2024.
This is particularly driven by buyers over 41 years, many of whom are purchasing ₹2+ crore properties. Interestingly, ultra-luxury homes above ₹3 crore recorded shorter decision cycles of just 16 days in 2024.

Buyer Age Trends: Older Demographics Dominate

While the 31–35 age group has historically dominated, 2024 saw 36–40-year-olds emerge as the largest buyer group. The share of homebuyers under 25 years dropped to just 4% in 2024, compared to 8% in 2020.

Decision Cycles Getting Longer

AI-tracked data shows average inquiry-to-booking days increased from 25 days in 2022 to 28 days in 2024. However, luxury buyers are quicker to close deals once engaged.

Buying Channels: Brokers Gain Ground

While digital sources (developer and aggregator websites) fell from 35% in 2022 to 30% in 2024, channel partners rose from 28% to 32%.
Offline direct visits also increased, while referrals stayed steady at ~12%.

3BHKs Rising, 1BHKs Declining

Configuration preferences are shifting toward larger homes:

• 3BHK: Rose from 38% in 2022 to 45% in 2024
• 1BHK: Declined notably over the same period

This change reflects evolving lifestyle needs and remote work’s influence on space requirements.

AI’s Expanding Role in Real Estate

ANAROCK’s ASTRA platform uses 74 AI models to analyse 2.8 million qualified leads, delivering insights that are transforming sales strategies. AI-powered lead scoring, property matching, and behavioural analysis have improved conversion rates by up to 30%, while enabling a 95% accuracy rate in matching buyers to suitable properties.

This data-driven approach marks a decisive shift away from intuition-led selling, bringing measurable efficiency and targeted marketing to India’s housing market.

Also Read: Affordable Homes Selling Faster, Luxury Homes Slowing Down

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H1 2025: Record-Breaking Performance

From January to June 2025, Mumbai clocked 75,672 property registrations as of June 30 noon. This marks a 4% increase compared to 72,491 registrations in the corresponding period of 2024. Revenue collected by the state government from these registrations also reached a peak of INR 6,699 crore, a 14% year-on-year growth from INR 5,874 crore in the same period last year.

Mumbai Property Registrations & Revenue (H1 Comparison)

Source: IGR, ANAROCK Research

June 2025 Trends and Historical Context

June 2025 alone saw 11,211 properties registered by noon, generating INR 1,004 crore in revenue. While registrations for June dipped slightly (about 4% lower than June 2024’s 11,673 deals), revenue held firm, nearly matching last year’s figure with only a 1% decline.

Anuj Puri, Chairman – ANAROCK Group, commented, “June 2025 saw Mumbai notch up its second-highest property registrations for the month in six years, with 11,211 properties changing hands and revenue collections hitting an impressive INR 1,004 crore.” He added, “While registrations dipped slightly – about 4% lower than June 2024’s 11,673 deals – this year’s revenue held firm, matching almost last year’s figure. In fact, June 2025’s revenue was just 1% lower than last year, highlighting the market’s resilience despite a marginal drop in transactions. Mumbai’s real estate continues to deliver strong numbers, even as the pace has cooled a bit.”

June Revenue Trends (2019-2025)

Source: IGR, ANAROCK Research (Note: Only specific years provided in source data)

Sales Volume vs. Registrations: A Paradox Explained

Despite the strong registration numbers, overall housing sales across the Mumbai Metropolitan Region (MMR), including Mumbai City, remained muted in early 2025. ANAROCK Research indicates that Mumbai saw about 189,570 units sold in H1 2025, a 32% drop from the same period last year.

Puri attributes this apparent paradox to a record-breaking March. “Behind this seeming paradox lies a record-breaking March,” Puri stated. “After the announcement of a 3.9% hike in Maharashtra’s ready reckoner rates for FY26, buyers rushed to register properties, resulting in a whopping 15,501 registrations – the highest March tally in three years.” For comparison, only December 2020 (19,581) and March 2021 (17,728) recorded higher numbers, both influenced by COVID-era stamp duty reductions. March 2025 was exceptional, collecting over INR 1,589 crore in revenue from property registrations alone.

Average Ticket Price Indicates High-Value Sales

Further analysis of property registrations and demand trends from January to June 2025 reveals that the average ticket price of homes sold stood at INR 1.60 crore. This is over 3% higher than INR 1.56 crore recorded in H1 2024, and a significant 55% jump from INR 1.02 crore in the corresponding period of 2021. This trend indicates a continued preference for high-ticket priced homes over more affordable ones in the Mumbai market.

Also Read: Mumbai Real Estate Market Updates

The post Mumbai Property Registrations Reach All-Time High in First Half of 2025 appeared first on Square Feat India.

Despite changing lifestyles, growing urbanisation, and a rising gig economy, the Indian obsession with owning property remains as strong as ever. In fact, it’s evolving, with younger generations now buying homes not just to live in — but to earn from, pass on, and hold close as a symbol of identity.

This enduring love for real estate, experts say, is deeply tied to India’s socio-cultural values, family structures, and long-term financial behavior.

“Owning a home in India is not just a financial decision — it’s a deeply emotional and cultural milestone. It’s about legacy, pride, and a sense of arrival,” says Dr. Prashant Thakur, Regional Director & Head – Research, ANAROCK Group.

Legacy over Liquidity

For many Indian families, property remains the only real form of generational wealth. Ancestral homes are often cherished for decades, even centuries, becoming part of the family’s identity.

In Kolkata’s Shobha Bazar, a 120-year-old mansion still houses five generations. The owners have refused redevelopment offers, saying the home is their “living history.”

A 2023 ANAROCK report found that 68% of Indian homebuyers are end-users, and 80% plan to pass on their property to their children, underscoring that homeownership here is as much about legacy as it is about investment.

Renting Still Seen as a Stopgap

While renting is a lifestyle choice in many Western countries, in India it is often viewed as a temporary solution — or even a wasteful expense.

A 2022 RBI survey showed that 77% of household wealth in India is in real estate, compared to just 35% in the US. For most Indians, paying rent is considered “money lost,” while EMIs are seen as equity in progress.

Take Rajat, a 32-year-old software engineer in Pune. Despite having company-sponsored housing, he chose to buy a ₹1 crore apartment. “Renting feels like a leak. At least an EMI is building something for me,” he said.

The Safe Bet Mindset

Indians have long viewed real estate as a safer investment compared to volatile alternatives like stocks, mutual funds, or crypto.

During the 2008 global financial crisis, while global property markets tanked, prices in India’s top cities remained largely stable. The COVID-19 pandemic also saw a quick rebound in the Indian housing sector — by 2023, over 4.76 lakh units were sold across the top cities.

“Unlike other investment classes, real estate is tangible, slow-moving, and emotionally satisfying — all key factors for the Indian buyer,” says Dr. Thakur.

Policy Support and the Power of EMIs

Government incentives have also played a pivotal role in promoting homeownership. Tax benefits, interest subsidies, and favourable GST rates on affordable housing have made buying more accessible.

Key initiatives include:

• Tax deductions under Sections 80C and 24(b) (recently increased to ₹3 lakh for interest repayment)
• 1% GST on under-construction affordable homes
• Subsidies under PMAY-CLSS, with interest benefits up to 6.5%
• Stamp duty rebates for first-time buyers in several states

These schemes, along with relatively easy loan access, have led to strong uptake. According to SBI, over 70% of its 2023 home loan portfolio was to salaried individuals aged 30–45 — mostly first-time buyers.

Social Status and Matrimonial Market Value

Homeownership is often tied to social perception. In matchmaking and societal interactions, owning property is seen as a mark of stability and success.

A marketing professional in Delhi NCR noted that when he updated his matrimonial profile to include “2BHK owner in Gurgaon,” responses noticeably improved.

Urbanisation and FOMO

As India rapidly urbanises — with urban population projected to hit 42% by 2035 — property prices are soaring. This has triggered a Fear of Missing Out (FOMO), especially among younger buyers who fear being “priced out” of the market.

In Mumbai, average ticket sizes have jumped from ₹1.5 crore in 2020 to ₹2.15 crore in 2024, according to ANAROCK.

Homes as Income Engines

Unlike previous generations, today’s buyers aren’t just looking for a place to live — they’re looking to earn. From renting spare rooms on Airbnb to investing in co-living or commercial spaces, homes have become income-generating assets.

Platforms like Strata and hBits are enabling fractional ownership in commercial real estate, attracting HNIs and NRIs with entry points of ₹10–25 lakh and returns of 8–10% annually.

Conclusion: More Than Bricks and Mortar

Real estate in India isn’t merely about square footage. It’s about security, belonging, and ambition — and often, the culmination of a lifelong dream.

“In India, buying a home is not a transaction — it’s a statement,” Dr. Thakur concludes. “It’s how we define stability, express success, and plan for future generations. It’s our story, written one EMI at a time.”

Also Read: MahaRERA Issues Guidelines to Ensure Safe Home Buying Practices

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