Retail Leasing Soars 65% As Housing Market Value Nears Rs 6.65 Lakh Crore

The Indian real estate market continues to show its strength, with the housing sector showing robust growth despite the global economic uncertainty. Recent trends show how India's property landscape is undergoing a transformation, driven by demand for premium spaces and a surge in retail expansions across major cities.

When it comes to the retail sector, total leasing activities have reached 3.2 million sq. feet in the third quarter of 2025, marking a sharp 65 per cent year-on-year (YoY) growth. This is a reflection of the renewed strength of retail and housing sales at a time of global tensions. This is also a chance for global and domestic brands to grow. Delhi-NCR and Hyderabad have dominated this activity, contributing a total of 57 per cent of total leasing together in this quarter. The spike was led by retail and then housing, due to high demand for fashion, food service brands, and quick-service restaurants.

The high street locations and well-managed malls became home to this surge primarily, as they have more potential for growth and expansion opportunities due to high footfall.

As for the residential side, the property market is witnessing a strong rise in value and volume. The total housing sales across the top seven cities are estimated to surpass Rs 6.67 lakh crore in the FY26, which would be nearly 20 per cent growth YoY. This upward chart is driven by the demand in premium and luxury segments, which account for a share in the growing metropolitan markets.

Developers are constantly catering to buyers who are on the lookout for bigger and better spaces that offer modern amenities, high-quality construction, and have limited unit sales.

Delhi NCR and Chennai have stood out for the markets; these regions have already surpassed 70 per cent of the previous year's total sales value within the first half of FY26. In contrast, the Mumbai Metropolitan Region (MMR) has experienced slow growth, achieving approximately 45 percent of the previous fiscal year's sales value. These numbers don't just represent the ever-changing market dynamics; they also show which place is able to cater to the people's needs. While MMR remains a key market, the north and south are also showing stronger and faster growth patterns.

The Indian real estate story in FY26 is expected to become a value-led growth rather than just being a volume-led expansion. Developers are focusing on projects with limited units, project quality, prime locations, and brand trust.