India Market Monitor Q2 2025

The second quarter of CY 2025 (April to June) marked a continuation of the growth momentum India's real estate market. The following key trends observed during the quarter highlight the overall sector's resilience.

• Office: The office sector continued its strong momentum in Q2 2025, with steady absorption observed across key markets. Office leasing activity reached 20.3 million sq. ft. while new office supply of approximately 17.1 million sq. ft. became operational during the quarter. Space take-up by domestic corporates and global capability centres (GCCs) played a pivotal role in boosting office absorption across cities.
• Industrial and Logistics: India’s industrial and logistics (I&L) real estate sector demonstrated continued growth in Q2 2025, backed by a robust absorption of 14.6 million sq. ft., registering a significant ~86% Y-o-Y growth. Space take-up by third-party logistics (3PL) and e-commerce companies were pivotal in strengthening the warehousing leasing activity across cities.
• Retail: Supply addition in India's retail sector witnessed a significant boost in the first half of 2025 as approximately 2.2 million sq. ft. of new retail space became operational. Fashion and apparel brands continued to lead space take-up, accounting for a ~37% share of the overall leasing during Q2 2025. Shopping malls continued to refine their tenant mix to enhance the visitor experience, integrating a wider array of entertainment, dining, and innovative retail formats.
• Residential: India’s residential real estate market witnessed a 9% Q-o-Q growth in new unit launches as sales remained stable in Q2 2025. The mid-end and high-end housing segments continued capturing the attention of home buyers, constituting about 58% of the total sales across the top seven cities during the quarter.
• Investments: Investment activity witnessed an uptick in Q2 2025, driven by sustained momentum in land / development sites and capital deployment into built-up retail and office assets. Investment inflows were primarily fuelled by developers, followed by institutional investors, during the quarter.

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