India’s Residential Market Sees 77% Growth, Reaches 5.44 Lakh in FY 2025

India's residential real estate market has seen a sharp rebound post-pandemic, with total registered residential transactions in major cities rising by 77 per cent from FY 2019 to FY 2025. According to a recent report by Square Yards titled "Primary Vs Secondary: Unpacking Demand Trends in India’s Residential Market," 5.44 lakh units were registered in FY 2025, up from 3.07 lakh in FY 2019.

This increase in activity reflects a growth in both primary and secondary market transactions. Primary transactions, which represent the direct sale of new or under-construction homes from developers to buyers, accounted for 57 per cent of the total in FY 2025. Secondary transactions, involving the resale of properties, made up the remaining 43 per cent, showing a notable shift from the 38 per cent share recorded in FY 2019.

The report analyzes trends across seven major Indian cities: Bengaluru, Hyderabad, Mumbai, Navi Mumbai, Noida & Greater Noida, Pune, and Thane. In volume terms, secondary market transactions surged from 1.22 lakh units in FY 2019 to 2.33 lakh in FY 2025, while primary transactions grew from 1.84 lakh units to 3.11 lakh units during the same period.

Key Insights from the Report:

- Bengaluru: The city's residential market saw significant growth, with a 33 per cent increase in primary transactions, which made up 54 per cent of the total in FY 2025. The share of secondary transactions rose sharply from 31 per cent to 46 per cent as demand for ready-to-move-in homes, especially in tech hubs, surged.

- Hyderabad: Secondary transactions in Hyderabad accounted for 51 per cent of total registrations in FY 2025, maintaining a balanced market profile. However, this represented a slight decline from 54 per cent in FY 2019, as demand for newly launched properties in areas like the western suburbs increased.

- Noida & Greater Noida: The share of secondary market transactions grew from 29 per cent in FY 2019 to 40 per cent in FY 2025. The region's growth was driven by strong investor interest and anticipation surrounding the development of Jewar International Airport.

- Mumbai: As a mature market, Mumbai's secondary transactions accounted for 51 per cent of all registered units in FY 2025. However, primary transactions saw significant growth, with numbers almost doubling to 71,000 in FY 2025, reflecting an increase in redevelopment projects and new launches in central parts of the city.

- Pune: With 76 per cent of the market driven by primary transactions, Pune's residential market remains largely focused on new developments, particularly in areas like Hinjewadi, Kharadi, and Wagholi. The share of secondary transactions rose marginally from 24 per cent in FY 2019 to 28 per cent in FY 2025.

- Thane: Primary transactions in Thane represented 62 per cent of the market, with a strong demand for new housing in the West. However, the secondary market also grew, with resale transactions more than doubling from 14,000 units in FY 2019 to 30,000 in FY 2025.

- Navi Mumbai: Navi Mumbai witnessed a 7 per cent increase in the share of secondary transactions, driven by buyer confidence related to the ongoing construction of the Navi Mumbai International Airport.

Tanuj Shori, CEO & Founder of Square Yards, commented on the market trends, stating, "The residential market's V-shaped recovery post-pandemic has been driven by renewed interest in homeownership, significantly boosting primary sales. At the same time, secondary transactions have also gained traction, with a 43 per cent share of the market in FY 2025, up from 38 per cent in FY 2019. The growing preference for ready-to-move-in homes, especially in well-connected locations, has contributed to the rising popularity of the secondary market."

Shori further noted that, despite the shift in market dynamics, the outlook for both primary and secondary markets remains positive. The increase in both new launches and resale transactions signals sustained growth, with demand expected to continue across India's key residential markets.