India’s Real Estate Soars: Valuations Cross ₹16 Lakh Crore

India’s Real Estate Soars: Valuations Cross ₹16 Lakh Crore

According to the 2025 GROHE–Hurun India Real Estate 150 report, the combined enterprise value of India’s top 150 real estate firms reached a staggering ₹16 lakh crore (about $188 billion) as of July 31, 2025, up from ₹14.1 lakh crore the previous year.

That’s more than the entire GDP of Kuwait, and even exceeds the combined GDP of Jordan and Bulgaria.

Growth Slows but Momentum Continues

• The sector still delivered a robust 14% annual growth, though this is a slowdown from the 70% leap seen the year before.

• The BSE Realty Index dipped by 12%, reflecting broader market adjustments.

• 63 new companies joined the valued top‑150 list this year, with 29 debuting directly in the top 100—a strong sign of rising investor confidence.

Metro Leaders: Where the Big Players Are

• Mumbai leads in clout: 42 firms valuing ₹6,96,800 crore collectively.

• Bengaluru follows with 23 firms worth ₹1,97,400 crore.

• Delhi-NCR holds third place (16 firms; ₹89,700 crore), followed by Hyderabad and Pune (13 firms each), and Gurugram with 12 firms valued at ₹3,23,300 crore.

Top Players in India’s Realty Valuation

Based on the report:

Rank	Company	Valuation (₹crore)
1	DLF	≈ 2.07 lakh crore
2	Lodha Developers (Macrotech)	≈ 1.38 lakh crore
3	Indian Hotels Company (Taj)	≈ 1.08 lakh crore

DLF retains its top slot for the second year running. Lodha holds second, while Taj (Indian Hotels Company) jumps into third spot with strong year-over-year growth of around 37%, underscoring the rising importance of hospitality in real estate.

Additional top names include Prestige Estates (≈ ₹71,500 crore), Godrej Properties (≈ ₹70,600 crore), Oberoi Realty, Phoenix Mills, and Adani Realty (~₹52,400 crore).

Two regional players—M3M India and Aparna Constructions—also earned spots in the top ten with valuations of around ₹37,400 crore each, signaling the emergence of strong local themes.

Financial Health & Sector Outlook

• Real estate credit from banks nearly doubled in four years—from ₹17.8 lakh crore in FY21 to ₹35.4 lakh crore in FY25, increasing its share of total bank lending from 16.3% to 19.4%.

• Gross non-performing assets (GNPA) in construction dropped sharply—from 23.5% in March 2021 to just 3.1% in March 2025—highlighting improved credit quality and stronger balance sheets.

• A credit rating uplift-to-downgrade ratio among real estate firms stood at 23:1 in H2 FY25—far better than broader economy’s ratio of 2.3:1.

• Operating margins above 20% were reported by 66% of listed realty firms (up from 55% in FY21); net margin over 10% was seen in 62% (vs 23% in FY21).

Improved governance, cost discipline, and strong end‑user demand are helping the sector evolve from a cyclical market to a more institution-friendly space.

Looking Ahead: Trends Shaping Real Estate

• Hospitality and co‑working firms are gaining traction—as seen in Indian Hotels and newer entries like OYO, WeWork India, and SmartWorks valued at ₹1,100 crore+.

• SM‑REITs (small and mid‑sized REITs) may soon democratize access to industrial parks, student housing, and co‑living assets.

• Structural changes—like tighter financing norms and greater institutional participation—are solidifying real estate as a stable investment class.

Takeaway

India’s real estate sector has carved out global significance: with valuations now exceeding Kuwait’s GDP, and a diversified mix of residential, commercial, hospitality, and co‑working players, the sector is setting new benchmarks. While growth has cooled from last year’s peak frenzy, the fundamentals—balanced financing, healthier margins, and expanding investor pools—suggest a sustainable trajectory.