India RERA Tracks Uneven Growth Across Property Markets

India’s property market is showing a sharper divide between commercial and residential activity, with office leasing reaching record levels while listed housing developers reported a steep fall in pre-sales in the June quarter. The divergence matters beyond property companies: it could shape where jobs, transport demand, housing supply and new urban infrastructure concentrate over the next year.

Office demand remained the stronger engine. Gross leasing across major Indian markets reached 24.6 million sq ft in the second quarter of 2026, taking first-half absorption to 45.5 million sq ft, according to market data from CBRE and Equirus. GCCs, or Global Capability Centres that handle technology, engineering and business functions for multinational firms, remained a major source of demand. Bengaluru continued to be the leading GCC market, while southern cities accounted for a large share of overall office take-up. The growth is also influencing the investment structure of commercial property, with REITs gaining a larger presence in organised office assets. For cities, however, rising commercial occupancy also means greater pressure on public transport, roads, utilities and surrounding housing. The contrast is visible in residential real estate. Listed developers recorded aggregate pre-sales of about ₹36,600 crore in Q1 FY27, down 26% from a year earlier and 33% from the preceding quarter, according to Equirus Securities.

Yet the weakness was not uniform: excluding two major developers, sector pre-sales were reported to have risen year-on-year. Supply and approvals appear to be an important part of the picture. Developers launched around 38.1 million sq ft during the quarter, 20% below the year-earlier level. Industry analysts have attributed the slower rollout partly to approval-related delays and deliberate phasing of projects, while many developers continue to retain their broader FY27 launch plans. This is where RERA becomes relevant for the next phase of residential expansion. The Real Estate (Regulation and Development) Act requires covered projects to be registered before advertising, marketing, booking or sale, while its broader framework is designed to improve transparency and protect homebuyers.

For citizens, the bigger issue is whether delayed launches eventually translate into concentrated construction, higher housing costs or pressure on already stretched urban services. Stronger commercial demand can support employment and investment, but sustainable growth depends on matching development with public transport, water, energy efficiency and social infrastructure. The next few quarters will therefore be less about whether real estate is growing and more about where growth is occurring, how quickly housing supply returns, and whether cities can absorb the expansion without adding new infrastructure and climate pressures.

Also Read: India Real Estate Expands Beyond Housing for Investors

India RERA Tracks Uneven Growth Across Property Markets