Exploring the Indian Real Estate Sector in 2025: An In-depth Analysis

The Indian real estate sector is globally recognised and comprises four primary sub-sectors: housing, retail, hospitality, and commercial. This sector’s growth is significantly driven by an expanding corporate environment and the increasing demand for office spaces, along with urban and semi-urban housing.

The construction industry, a major player in this sector, ranks third among 14 major industries in terms of its overall economic impact. Real estate is the second-largest employment generator in India, following agriculture. This sector is expected to attract substantial non-resident Indian (NRI) investments, both in the short and long term, with Bengaluru leading as the top investment destination, followed by Ahmedabad, Pune, Chennai, Goa, Delhi, and Dehradun.

Financial Performance of Major Real Estate Companies in FY24

The Indian real estate market is home to about 35 companies, each contributing to the sector’s growth. Let’s delve into the financial performance of some major players in FY24:

1. DLF Limited:

• Focus: Colonisation and real estate development, covering land acquisition, project construction, and marketing.
• Revenue: ₹6,427 crore, a 12.86% increase from ₹5,694.83 crore in FY23.
• EBITDA: Grew by 29.94%, reaching ₹2,654.94 crore from ₹2,043.19 crore in FY23.
• EBITDA Margin: Expanded by 543 bps to 41.31%.
• Net Profit: Increased by 48.09%, totaling ₹1,630.40 crore compared to ₹1,100.92 crore in FY23.

2. Oberoi Realty Limited:

• Focus: Premium residential developments, office spaces, retail, hospitality, and social infrastructure projects.
• Revenue: ₹4,495.79 crore, a 7.23% growth from ₹4,192.58 crore in FY23.
• EBITDA: Grew by 23.53% to ₹2,732.85 crore from ₹2,212.28 crore in FY23.
• EBITDA Margin: Expanded by 802 bps to 60.79%.
• Net Profit: Marginal increase of 1.16%, reaching ₹1,926.60 crore compared to ₹1,904.55 crore in FY23.

3. Macrotech Developers Limited:

• Focus: Affordable residential projects, logistics, industrial parks, and commercial real estate.
• Revenue: ₹10,316.10 crore, an 8.93% increase from ₹9,470.40 crore in FY23.
• EBITDA: Grew by 28.02%, totaling ₹2,829.10 crore from ₹2,209.90 crore in FY23.
• EBITDA Margin: Expanded by 409 bps to 27.42%.
• Net Profit: Surged by 220.14%, reaching ₹1,567.10 crore compared to ₹489.50 crore in FY23.

Also Read: The Growth of Power Sector in India in 2025

Market Outlook

The Indian residential property market experienced remarkable growth in FY23, with home sales reaching an all-time high of ₹3.47 lakh crore (USD 42 billion), marking a 48% year-on-year increase. Sales volume also saw a significant rise, with 379,095 units sold, a 36% increase. Major urban developers are set to complete approximately 558,000 homes in 2023. The demand for residential properties surged in India’s top eight cities, driven by mid-income, premium, and luxury segments, despite challenges such as high mortgage rates and property prices.

India’s retail sector is poised for substantial growth, with nearly 41 million sq. feet of retail space expected to become operational between 2024 and 2028 in the top seven cities. These spaces encompass various stages of development. Gross leasing in these cities reached a record 62.98 million sq. feet in 2023, a 26.4% increase from the previous year. The December quarter was notably the busiest on record with 20.94 million sq. feet.

Banking, financial services, and insurance (BFSI) firms led leasing activities with a 22% share, followed by technology companies at 21%, engineering and manufacturing at 15%, and flexible space operators at 14%. The demand for data centres is expected to increase by 15-18 million sq. feet by 2025. Office absorption in the top seven cities was 41.97 million sq. feet in 2023. Fresh real estate launches accounted for 41% of the market share in the first quarter of 2023, up from 26% four years ago. The Indian real estate sector’s robust growth trajectory indicates its pivotal role in the country’s economic landscape, offering promising opportunities for investors, developers, and stakeholders alike.

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