What's covered under the Article:

India’s residential housing market has experienced a remarkable surge in the past six years, with the total number of registered housing units increasing by an impressive 77% from FY19 to FY25. According to Square Yards, a leading real estate platform, a total of 5.44 lakh housing units were registered during FY25, reflecting a significant rebound in housing transactions across major Indian cities. This surge highlights a broader trend of recovery, driven by renewed demand for homeownership and changing preferences among buyers.

Key Market Trends:

The residential property market in India has been primarily divided into two segments: the primary market and the secondary market. Primary market transactions, which involve new homes directly from builders or developers, accounted for 57% of the total transactions during FY25. Meanwhile, secondary market transactions, which include resales of existing homes, made up 43% of the total, marking an important shift in buyer preferences. The secondary market, in particular, has seen a significant increase in activity, with transactions rising from 1.22 lakh units in FY19 to 2.33 lakh units in FY25.

In comparison, primary market transactions also saw substantial growth, increasing from 1.84 lakh units in FY19 to 3.11 lakh units in FY25. This reflects a strong demand for both newly built homes and established properties that offer immediate availability.

V-Shaped Recovery in Residential Market:

According to Mr. Tanuj Shori, CEO & Founder of Square Yards, the Indian housing market has experienced a V-shaped recovery since the pandemic. The recovery has been bolstered by several factors, including government policy support, low-interest rates, and a shift in consumer behavior favoring homeownership. The pandemic pushed many people to reconsider their living arrangements, leading to increased demand for homes with better amenities, more space, and prime locations.

A key factor contributing to this resurgence is the growing preference for ready-to-move-in homes. Buyers have shown a marked preference for homes that are ready for immediate possession, particularly those located in well-connected and established areas. This demand for ready-to-move-in properties has contributed to the increased activity in the secondary market, where resold homes often come with the advantage of immediate availability and less waiting time compared to properties still under construction.

Regional Insights:

The analysis by Square Yards covers seven major cities: Bengaluru, Hyderabad, Mumbai, Navi Mumbai, Noida & Greater Noida, Pune, and Thane. These cities have shown varying levels of growth, with some areas witnessing a higher concentration of secondary market transactions due to their established infrastructure and connectivity. Cities like Bengaluru and Hyderabad have seen considerable demand for both new and resale properties, driven by the expanding tech industry and increasing urbanization.

Secondary Market's Growing Share:

One of the most notable trends in the Indian residential market has been the growth of the secondary market. Pre-pandemic, the secondary market accounted for just 38% of total transactions. By FY25, this share had increased to 43%, reflecting a shift in buyer behavior. The increase in secondary market transactions is not only driven by demand for ready-to-move-in homes but also by the growing appeal of established, well-connected neighborhoods that offer easy access to schools, hospitals, and transportation.

The secondary market has gained substantial traction due to the advantages it offers, such as the ability to inspect the property in person and immediate possession. In comparison, the primary market can involve longer waiting times due to ongoing construction.

Conclusion:

India’s housing market has witnessed a strong resurgence, with a 77% growth in registered transactions between FY19 and FY25. The continued preference for ready-to-move-in homes, along with the rise in secondary market transactions, highlights a dynamic shift in buyer preferences. The market’s V-shaped recovery post-pandemic, coupled with favorable economic conditions and changing buyer needs, has positioned the Indian real estate sector for continued growth. As demand for both primary and secondary market properties remains strong, the market is expected to remain resilient in the near future, driven by urbanization, affordability, and evolving preferences for well-connected, ready-to-occupy homes.

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