Economic Survey: Backed by reforms, real estate momentum continuing

Real estate's momentum continues, says Economic Survey

The Economic Survey of 2025-26 said that the momentum in real estate sales have continued in recent quarters, starting from a sustained upcycle since September 2021, with the wind in the sails for the sector being backed by reforms such as the Real Estate Regulatory Act (RERA), goods and services tax (GST), and government policies such as housing for all.

The Survey added that the reforms have also caused household savings in the form of physical assets to increase. Till FY24, households had Rs 38.4 lakh crore in savings in the form of physical assets, compared to Rs 11-12 lakh crore around a decade ago.

"Backed by...reforms, the sector entered a sustained upcycle from September 2021, post-COVID, as reflected in improved sales, driven by higher household savings channelled towards physical assets. The momentum has continued in recent quarters, supported by favourable affordability conditions and easing inflation. On average, housing volume sales continue to remain higher compared to FY22-FY24," said the Survey.

Citing data from the National Housing Bank, the Survey noted that the formalisation of the sector has also been followed by the expansion of housing finance, both from banks and housing finance companies.

"Housing finance also expanded steadily, with outstanding individual housing loans more than tripling from about Rs 10 lakh crore as at the end of March 2015 to over Rs 37 lakh crore at end March 2025, raising housing loans from 8 percent to over 11 percent of GDP, indicating a deeper financialisation of housing demand," the survey said.