Infomerics Report Forecasts Structural Growth and Shift to Premium Housing in Indian Real Estate
New Delhi, April 18, 2026: Infomerics Valuation and Ratings Ltd. has released a comprehensive outlook report titled “The Indian Reality Matrix: Drivers, Dynamics, and Disruptions,” authored by Chief Economist Dr. Manoranjan Sharma. The report signals that India’s real estate sector is entering a structural growth phase, underpinned by rapid urbanization and a robust infrastructure push, with national GDP growth projected between 7.3% and 7.4%. A significant shift in funding was also noted, as institutional investments reached a record USD 8.5 billion in 2025. Notably, domestic capital now accounts for a 57% share of these investments, indicating a move toward more stable and localized funding sources for the industry.
The residential market is undergoing a fundamental transition from volume-led to value-led growth, with premium housing priced above ₹1 crore now accounting for approximately 62–63% of total sales. However, the report highlights a widening gap in the affordable housing segment, where demand remains weak. This disparity is exacerbated by deteriorating affordability; housing price growth has maintained a 9.3% CAGR, significantly outpacing the 5.4% growth in income. This trend is pushing price-to-income ratios higher and creating a demand-supply mismatch characterized by a potential luxury oversupply and a persistent shortage of affordable units.
In the commercial sector, the report identifies the office segment as a primary growth driver, achieving record absorption of approximately 61.4 million square feet in 2025. This momentum is largely attributed to the expansion of Global Capability Centers (GCCs), IT/ITeS firms, and a rising demand for flexible workspaces. Furthermore, the report notes the emergence of micro-market driven growth, where specific infrastructure and employment hubs—rather than entire cities—determine real estate performance. While government initiatives like REIT monetization and PMAY-U 2.0 provide structural support, the sector continues to face hurdles including liquidity constraints, high construction costs, and regulatory complexities.
