End-user confidence returned decisively, premium and integrated developments gained traction, and regulatory discipline improved transparency across the market. As the sector enters 2026, the momentum appears far from over.
In this edition of ETMarkets Smart Talk, Aman Sarin, Director & CEO of Anant Raj Limited, explains why real estate is shaping up to be one of the most balanced and resilient asset classes for investors, how luxury and mid-income housing will drive the next phase of growth, and why new formats such as REITs and fractional ownership are expanding participation across generations. Edited Excerpts –
Q) How would you summarize the performance of the Indian real estate market in 2025 across residential, commercial, and alternative segments?
A) The Indian real estate market in 2025 delivered one of its strongest, most broad-based years in recent memory.
The Developers who have creditable names and past record of delivering projects on time has seen major traction from the investors and buyers.Established location such as Golf Course Extension Road where we have large integrated residential township has seen major traction and sustainable growth.The demand is backed by end users with limited and selective supply of Residential inventory.The residential segment stood out with record-breaking sales; its highest in more than a decade, driven by end-user confidence, rising incomes, and a continued shift toward homeownership post-pandemic.
Commercial real estate, which initially faced uncertainty, stabilized meaningfully with renewed leasing activity, especially from IT, GCCs (Global Capability Centres), and flex-workspace operators. Companies increasingly opted for hybrid-ready offices, pushing demand for Grade A spaces in major metros.
Overall, 2025 reinforced real estate as a structurally strengthening sector that continues to evolve with changing urban lifestyles and business needs.
Q) Which key trends defined the realty market in 2025—luxury demand, affordability, rentals, or institutional participation?A) In 2025, luxury demand surged notably, fueled by growing HNI wealth and a preference for premium, amenity-rich, and branded residences that emphasize wellness and smart living.
Institutional participation also deepened, with significant investments flowing into residential and commercial projects, enhancing market transparency and professionalism.
This combination has raised quality standards and boosted buyer confidence, making luxury developments more accessible and reliable while strengthening the sector’s overall capital inflow and long-term growth prospects.
Q) Going into 2026, what makes real estate a compelling asset class compared to equities, bonds, and gold?A) Real estate is entering 2026 as one of the most balanced and reliable asset classes for Indian investors. Real estate offers stable appreciation backed by tangible value.
Bonds and fixed-income products, while safe, often struggle to outpace inflation, whereas real estate provides both capital growth and steady rental yields.
Unlike gold, which is purely a store of value, property generates recurring income while also benefiting from urban expansion, regulatory reforms, and infrastructure upgrades such as metro expansions and expressways.
Investors also appreciate the increasing professionalism in the sector, transparent RERA processes, and the maturity brought in by REITs.
For diverse investor profiles, HNIs, first-timers, or long-term wealth builders, real estate combines safety, income generation, and inflation protection, making it a compelling choice for 2026.
Q) Do you expect the growth in luxury and premium housing to continue in 2026, or will the market broaden to mid-income segments?A) Luxury and premium housing are expected to maintain strong momentum in 2026, driven by rising aspirations, expanding HNI wealth, and the growing preference for smart, green, and amenity-rich living environments.
The luxury segment has matured significantly, with buyers valuing design, branded residences, wellness features, and integrated communities. However, the mid-income segment will continue to command the largest share of demand, as it accounts for substantial portion of India’s housing requirement.
Together, these dynamics point toward a balanced market, where luxury drives value growth and mid-income drives volume growth.
With urban migration rising and infrastructure corridors expanding, both segments will see healthy traction in 2026, making the market more inclusive and broad-based. Most importantly, timely extension of Projects has started & will always play a vital role in the Sector.
Q) Gen Z prefers digital and bite-sized investing—how does fractional real estate fit into their wealth-building journey?A) For Gen Z investors, fractional ownership via REITs and serviced apartments offers an accessible entry into real estate without high capital commitment.
REITs provide a regulated, liquid platform to invest in Grade A commercial assets, aligning well with Gen Z’s preference for digital, flexible investments. Serviced apartments add another dimension by combining hospitality with real estate exposure, offering steady rental yields.
These options democratize real estate investing, enabling younger buyers to build diversified portfolios with smaller amounts, benefiting from professional management and market growth.
Q) How is fractional ownership changing the perception of real estate from a “lumpy” investment to a “liquid, tech-enabled” asset?A) Fractional ownership in India is still in its early stages, with limited adoption compared to global markets. Currently, Real Estate Investment Trusts (REITs) represent the most reliable and regulated form of fractional ownership, allowing investors to buy units in large commercial properties without committing significant capital.
This model transforms real estate from a traditionally “lumpy,” illiquid investment into a more accessible, liquid, and tech-enabled asset class.
As awareness and digital platforms grow, fractional ownership has the potential to democratize real estate investing and attract a wider range of investors seeking flexibility and transparency.Q) What is your top advice for first-time real estate investors entering the market in 2026?A) First-time investors in 2026 should begin by identifying micro-markets that show strong long-term potential through infrastructure development, employment hubs, and consistent demand.
Due diligence is crucial: check the developer’s track record, past delivery timelines, financial health, and approvals. Understand your own investment goal; whether you want capital appreciation, rental income, or a mix of both, as different asset types perform differently.
Maintaining good credit hygiene will help secure favourable loan terms, improving overall returns. New investors should also consider diversifying through fractional real estate, which allows exposure to Grade A commercial assets without committing large sums.
Finally, stay updated with government incentives, regulatory norms, and market movements. A combination of informed choices, disciplined planning, and long-term commitment is key to building a strong real estate portfolio.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
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