India’s Real Estate Sector Grows Sustainably in 2025, Driven by Luxury Housing, Smart Infrastructure, and Redevelopment

India’s Real Estate Sector Grows Sustainably in 2025, Driven by Luxury Housing, Smart Infrastructure, and Redevelopment

By:-Idris Rajkotwala, Executive Director, Unitile
“As we conclude 2025, India’s commercial real estate sector has decisively transitioned toward performance-led, sustainability-driven development. Since 2019, green-certified assets have accounted for approximately 65% of the growth in India’s Grade A office stock, and by mid-2025, sustainable buildings represented over 70% of new office leasing activity across major markets. This reflects a fundamental shift in occupier priorities, where ESG compliance, operational efficiency, and employee well-being are now core to real estate strategy.

The past year has also reaffirmed the permanence of hybrid working and flexible space adoption. Flex and managed office formats continue to represent a rising share of annual leasing, while both domestic and global occupiers are demanding assets that can adapt quickly to evolving workforce patterns, technology requirements, and cost pressures. As a result, capital investment is increasingly flowing into performance-based specifications such as acoustic comfort, indoor environmental quality, and durable, resilient material systems.

Looking ahead to 2026, we expect this focus to deepen as regulatory frameworks and incentive structures begin to actively support low-carbon construction and retrofit-led modernisation. Modular and sustainable building systems, ranging from raised access flooring and advanced acoustic solutions to structural ceiling systems, will play a critical role in enabling flexibility, faster reconfiguration, and long-term environmental performance.

Ultimately, the next growth cycle in India’s commercial office market will be defined by how intelligently buildings are designed as integrated systems. Assets that combine modularity, sustainability, and performance beneath the surface will be best positioned to attract occupiers, command rental premiums, and protect long-term value.”

By Mr. Cyrus Mody – Founder and CEO of Viceroy Properties

In 2025, Mumbai’s Real Estate Sector has had a favourable outcome due to the continued demand from end users, better infrastructure being developed, and the creation of an enhanced regulatory framework that provides long-term stability and peace of mind. Buyers have been increasingly moving toward purchasing homes that are constructed with an emphasis on quality, sustainability, community-oriented designs, and better amenities. The stability of interest rates and the benefits of GST have created a more positive environment for buyers when it comes time to purchase homes and to complete development projects. As we move into 2026, we expect the continued high demand for luxury homes, increased focus on redevelopment will continue,  increased smart transportation corridors, and new technology-driven construction techniques to develop a more resilient and forward-looking Real Estate Industry.

By:-Aakash Patel, Managing Director of Atul Projects 

“Mumbai’s increasing connectivity through Infrastructure development continues to shape different Micro Markets. For example, new West and Central Metro Connection enhancements will support higher Housing Buyer Confidence and provide long-term value Creation, as will the new Coastal Road Linkages and Improved Arterial Networks. Each of these Corridors, i.e., Metro lines, Coastal Road Linkages, and Improved Arterial Networks, is experiencing an increase in Housing Buyer Confidence and a long-term increase in Value Creation as a result of this work. Historically, Redevelopment has unlocked opportunities for Modern Living in today’s most established Neighbourhoods. In 2026, due to the efficiencies created by GST, this momentum will only continue. We are committed to developing Structurally Sound and future-ready developments in terms of design and constituent construction materials that align with the growth potential of each evolving Micro Market.”

Neel Achary

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