Real Estate Sector Update : Real Estate Developers and Flexible Workspace Market by Choice Institutional Equities

Real Estate Market:
Q1FY26 Sales and Launches- India registered 83,431 new housing unit launches in Q2 2025, reflecting a 7% YoY decline. Over the same period, 81,927 units were sold, marking a 6% drop compared to Q2 2024.
H1CY25
* India’s residential market took a pause in H1 2025 following 2 years of rapid expansion, with overall housing sales slipping 2% YoY across 8 major cities. The decline was led by an 8% and 3% drop in Delhi NCR and Bengaluru respectively, where rising property prices dampened buyer demand despite strong price growth in these markets. These 2 cities saw recorded 14% YoY price increase driven by a stronger focus on developing premium, high-rise properties.
* India’s residential market experienced a notable shift towards premium housing, with sales of units priced over INR 10Mn increasing by 17% YoY and launches rising by 18%. This trend underscores a growing preference for high-value properties, with premium homes now accounting for nearly half of all residential transactions.
Flexible Workspace Market
Q1FY26- The total area transacted in the Indian office market in Q1FY26 increased 12% YoY to 20.7 msf. Flexible workspace operators delivered a record quarter in Q1 FY26, leasing approximately 5.3 msf of office space—a striking 52% YoY and 8% QoQ increase. During the same period, flexible workspaces accounted for 26% of total office market leasing, up from 19 % in Q1 FY25 and 17 % in Q4 FY25—highlighting their growing significance across India’s office leasing landscape.
H1CY25
* India's flexible workspace sector experienced remarkable growth with operators leasing approximately 10.2 msf of office space, up 43% YoY marking the highest ever recorded for a six-month period. Coworking spaces accounted for 76% of this absorption, indicating a broad-based adoption across sectors.
* Flex operators contributed 21% to the overall office transaction volumes across India in H1 2025.
Rebased Price Chart
Source: Company, Choice Institutional Equities
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