Mumbai: India’s real estate sector is undergoing a significant transformation, as new growth centers emerge and traditional leaders like Delhi-NCR fall behind. According to a recent report by HDFC Securities, cities such as Bengaluru, Mumbai Metropolitan Region (MMR), and Pune are poised to overtake Delhi-NCR in terms of growth by the second quarter of the financial year 2026. One of the key drivers behind this shift is the recent reduction in interest rates, which has improved affordability and spurred demand in key urban centers.
Entering a Phase of Stable, Balanced Growth
After record-breaking sales in FY 2024 and 2025, the Indian real estate market is now entering a more stable and balanced growth phase, according to HDFC Securities. Growth is no longer restricted to metro cities. Smaller Tier-2 and Tier-3 cities are showing increased demand for mid-premium homes, while luxury segments continue to dominate in major metros. Urbanization, rising incomes, and the growing trend of nuclear families are ensuring sustained housing demand across segments.
Office Demand Fuels Residential Growth in Bengaluru and Pune
One of the most important factors behind the rise of cities like Bengaluru and Pune is the surging demand for office space. The expansion of Global Capability Centers (GCCs) has led to a 17.6 percent annual increase in leasing activity. As prime office districts in Hyderabad and Bengaluru become saturated, rental rates have also risen by 6-8 percent annually. This, in turn, is attracting a professional workforce, which is boosting demand for quality residential projects in these cities.
City-Wise Comparison Reflects Clear Momentum Shift
Data from Cushman & Wakefield for Q3 2025 highlights this trend. Bengaluru recorded 2,844 new unit launches, a 43 percent jump from the previous year, the highest for any quarter. In contrast, Delhi-NCR saw a 37 percent decline, launching only 10,245 units. Mumbai followed with 15,388 units, although it showed a 9 percent year-on-year decline. While Bengaluru’s strength lies in the high-end and luxury segment (51 percent), Mumbai remains mid-segment driven, while Delhi-NCR struggles to keep pace.
This shift underscores a broader trend: India’s real estate boom is no longer confined to Delhi-NCR—it now has new champions in Bengaluru, Mumbai, and Pune.
