Economic Survey: Real Estate Momentum Continues, Driven by Reforms and Savings

• The Economic Survey 2025-26 highlights continued momentum in real estate sales since September 2021, supported by reforms like RERA and GST.
• Household savings in physical assets have significantly increased, reaching Rs 38.4 lakh crore by FY24, up from Rs 11-12 lakh crore a decade ago.
• The sector's upcycle post-COVID is attributed to higher household savings channeled into physical assets, favorable affordability, and easing inflation.
• Housing volume sales consistently remain higher compared to FY22-FY24, indicating sustained growth.
• Housing finance has expanded substantially, with individual housing loans tripling from Rs 10 lakh crore in March 2015 to over Rs 37 lakh crore by March 2025, deepening housing demand financialization.

Why It Matters: Real estate sector shows sustained growth, fueled by government reforms, increased household savings, and expanded housing finance.