Policy Stability Drives India's Real Estate Growth

In an interaction with Homes India, Ashwani Kumar, Head Sales & Marketing, Pyramid Infratech, points out that Indian real estate has gone through changes and become a structurally stronger and more policy-driven sector with regulatory stability and financial discipline. He says that developers nowadays are more focused on execution, capital prudence, and demand, aligned supply, rather than speculative expansion.

Ashwani Kumar is an expert real estate professional who possesses extensive leadership experience in sales and marketing at Pyramid Infratech, leading strategic growth initiatives across residential and commercial sectors in Delhi, NCR.

Indian real estate has undergone a fundamental shift in the last decade or so, transitioning from an industry characterised by cyclical volatility and diverse capital practices to one increasingly defined by policy stability, balance sheet discipline, and institutional credibility. This is creating a major shift in sentiment, moving real estate towards a more mature investment product rather than a cyclical trade. This change is the culmination of various regulatory changes, undiluted infrastructure-based governance, and an outright shift from developers towards asset quality and financial discipline. This is causing a paradigm shift towards the way capital, both global and domestic, is faring with the Indian market.

A major factor that has boosted intent is the predictability of the policy environment. Reforms in policies, such as the implementation of RERA and GST, have caused standardisation, especially in the residential market.

The stability in the Indian economy has been further solidified through the implementation of the Union Budget, which retains a high emphasis on capital expenditure in infrastructure as well as urban infrastructure across the country. Continued investment in transportation corridors, metro rail systems, logistics infrastructure, as well as last-mile connectivity options, is directly impacting the viability of real estate in the micro-markets emerging in the NCR region. Instead of stimulus-driven swings, there is a long-term commitment to capacity building in the Indian economy.

Also Read: Future of Work: How Office Design Is Being Redefined

Just as important, however, is the shift in behaviour among developers. Indeed, capital discipline has become a hallmark of leading real estate companies over the last few years, just as land banking and leveraging have become a thing of the past. This change has impacted the quality of supply. For instance, as noted by ANAROCK, new supply in larger markets is continuing to closely track genuine demand, reducing the overall level of inventory overhang and boosting absorption levels. The focus is on execution, completion, and supply-demand fit, which in turn has meaningfully increased buyer confidence.

The pricing trends, too, have shown this discipline. The market has not shown any sharp spikes, but calibrated growth at a regular rate, all thanks to the increase in costs of construction, increased features, and demand as opposed to shortages.

Research by Knight Frank India and JLL India regularly reaffirms the attractiveness of the Indian market as a destination for the Indian real estate industry, backed by robust office absorption, increasing office yield, and the advent of REITs in the Indian market. NCR continues to benefit from the diversified demand from the information technology services sector, the GCC sector, and the manufacturing-linked occupiers.

Also Read: Triple-Reinforced Cut-to-Size Marble Redefining Interiors 2026

Overall, the indications underlying the respective segments suggest structural as opposed to speculative growth. Residential real estate is experiencing strong demand from end-users as a result of stable rates, higher incomes of people, and improving affordability. Commercial property, on the other hand, remains to be boosted by India’s increasing position in the global services and manufacturing landscape. Office space in the NCR region has sustained leasing activity, while industrial and logistics markets are benefiting from supply-chain diversification and e-commerce.

Going forward, the perspective also remains constructive for Indian real estate. The continuity of policy, sustained public investment in infrastructure, and disciplined private capital should ensure that volatility remains contained. Indeed, rather than rapid booms and corrections, the sector appears set for a phase of steady, compounding growth.

For developers, it offers an environment that incentivises operational excellence and long-term thinking. For consumers and investors, this means transparency, lower risk, and predictability. And for markets like NCR, it opens the door for real estate to behave not just as a consumable or investment commodity, but as a stable economic asset class.