India’s Real Estate Pre-Sales Surge amid Office Leasing Growth
Connaught Place in Delhi was covered in dense smog on Thursday afternoon
While residential pre-sales rose strongly, ICRA projects commercial office leasing to sustain record absorption levels in FY2026
By S JHA
MUMBAI, August 23, 2025 — India’s real estate sector continues to show resilience despite macroeconomic headwinds, with leading developers reporting robust pre-sales growth and office leasing activity hitting record highs.
According to StockEdge data, Keystone Realtors, DLF, and Prestige Estates led the momentum in year-on-year pre-sales growth. “Keystone posted a 46.7% jump in pre-sales at ₹3,485 crore, while DLF and Prestige Estates clocked ₹26,245 crore and ₹26,120 crore, respectively, reflecting the strength of premium and luxury housing demand,” said the Kolkata-based equity market research firm in a post shared on its Telegram channel.
Despite sales volumes declining 20% YoY in Q2 CY25, overall value grew 1%, suggesting buyers’ preference for high-value homes. Analysts note that while new launches fell 16%, sales and supply remain well above pre-Covid levels, reflecting a transition from aggressive expansion to a quality-driven market.
In the commercial segment, rating agency ICRA reported that India’s office leasing hit record highs of 65 million sq. ft. in FY2025, up 14% YoY. “Net absorption nearly matched fresh supply in Q1 FY2026 at 17 msf, keeping vacancy levels at a historic low of 13.9%,” it added in a media statement. The agency expects further tightening to 13.0–13.5% by March 2026, backed by sustained demand from Global Capability Centres (GCCs), BFSI players, IT-BPM firms, and flex-space operators.
Abhishek Lahoti, AVP & Sector Head, ICRA, said: “Leasing momentum remains strong despite global IT headwinds, with GCCs and BFSI dominating demand. We expect absorption to remain at record highs in FY2026.”
City-level trends show Bengaluru and Chennai maintaining sub-10% vacancy levels, while NCR, MMR, Hyderabad, and Pune continue to attract sustained occupier interest.
With both housing pre-sales and office leasing fundamentals strengthening, experts believe India’s real estate cycle is entering a phase of measured but sustainable growth, underpinned by premium demand and strong institutional leasing appetite.
The industry strength is also reflecting in gains in the stocks of the realty players. Shares of DLF are bouncing from the recent lows, closing at ₹762 on Friday. Shares of Sobha closed at ₹1480 on Friday. The two realty major stocks are almost 10% away from the respective peaks. On six-month horizons, both companies show gains ranging from 15% to 25%.
(Disclaimer: This article recommends no buy or sell of shares of any company)
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