Real Estate Sector and Infrastructure - Newspaper Summary

 The sources indicate that the Real Estate and Infrastructure sectors experienced a notable surge in demand, particularly in housing, during the October 20–21, 2025 period, counteracting broader economic concerns. Simultaneously, the sources detail significant progress and challenges related to large-scale infrastructure and industrial investment, especially concerning emerging technologies and environmental impact.

I. Real Estate Sector Performance (Residential)

The Indian housing market demonstrated resilience and robust performance during the festival season (Dussehra-Diwali period).

Festival Season Surge and Market Trends

• Sales Growth: Realty developers reported a 10–25 per cent year-on-year (Y-o-Y) rise in home sales across major cities during the festival season. This performance bucks the trend of falling demand that characterized earlier parts of the year.
• Segment Preference: Sales were primarily driven by the mid-premium and luxury segments, as buyers sought larger homes, superior amenities, and properties from reputed developers.
  • Demand concentrated specifically on the ₹2–5 crore mid-premium and luxury homes, particularly 2BHK–3BHK ready units.
  • Buyers showed a marked preference for ready-to-move-in homes.
  • There is increased demand for branded, amenity-rich, and environmentally sustainable homes.
• Regional Performance:
  • Mumbai: Property registrations in Mumbai saw a 23% Y-o-Y jump during the Navratri-Ganesh Chaturthi period. This surge reflects deep structural confidence in the housing market.
  • National Capital Region (NCR): This festive quarter was described as one of the most positive in recent years, with strong momentum in the mid- and premium segments. The Delhi-NCR region accounted for the largest share of sales (45%) for the Prestige group in H1FY26, surpassing Bengaluru and Mumbai.
  • Southern Markets: Momentum remained steady, supported partly by the expansion of Global Capability Centres (GCCs) in India. Hyderabad, Bengaluru, and Chennai collectively saw a significant 47% increase in sales of residential properties in the July-September (Q2) period compared to the previous year. However, overall demand across India's top eight primary housing markets saw a 1% decline during Q3 (July-September), mainly due to lower demand in Mumbai, Pune, and Delhi-NCR in that specific quarter.

Factors Driving Demand

Key elements supporting the housing market momentum include:

• Economic Policies: Stable loan rates, Goods and Services Tax (GST) rate relaxations, and GST reforms have encouraged purchases.
• Investment Appeal: Tangible assets like real estate continue to attract investors.
• Infrastructure Projects: Large infrastructure projects, such as the Mumbai Trans Harbour Link, Navi Mumbai International Airport, and metro expansions, are seen as decisive factors influencing buying decisions due to improved connectivity.
• Developer Quality and Consolidation: Buyers increasingly favour trusted, branded, and listed developers, leading to a structural shift toward market consolidation. Listed developers, in particular, outperformed smaller peers.

Developer Strategies and Outlook

• Prestige Group Expansion: Bengaluru-based Prestige group saw sales worth ₹18,143 crore in H1FY26, surpassing its full-year sales for FY25. The group is planning rapid expansion in Delhi-NCR and intends to create a long-term presence there. They are capitalizing on demand for plotted developments by offering them as developed communities with premium infrastructure. The company expects the entire third quarter (October–December) to be the strongest for the residential segment, predicting a 20–25% increase in sales compared to the preceding quarter.
• Affordable Housing & Loans: Within the financial sector, upcoming RBI guidance suggests that if a parent bank focuses on traditional housing loans, its subsidiary could specialize in areas like affordable housing or loans against property, aiming to prevent duplication of work while expanding market coverage.

II. Infrastructure Development and Challenges

The sources highlight major industrial and public infrastructure trends, focusing primarily on manufacturing investment and the environmental costs of the booming AI sector.

Industrial Investment and Employment

• Capital Investment Outpaces Hiring: In the industrial sector, fixed capital addition (investment in plant, machinery, and land) was at its fastest rate in seven years in FY24.
• Sectors accounting for about 70% of total factory employment showed a double-digit rise in investments, but only single-digit growth in hiring (a median fixed capital increase of 12.6% vs. a median employment growth of 7.8%).
• This discrepancy suggests a movement toward greater automation or capital-intensive production, potentially driven by the need to upgrade technology, meet global competitive standards, and manage strict labor laws.

Infrastructure Planning and Projects

• Defence and Self-Reliance: Prime Minister Narendra Modi celebrated Diwali on board the aircraft carrier INS Vikrant, emphasizing it as a towering symbol of 'Aatmanirbhar Bharat' (self-reliant India). The carrier, built at the Cochin Shipyard, signifies a major domestic infrastructure and manufacturing achievement in defense.
• Green Hydrogen Hubs: India is prioritizing maritime transport decarbonization and aims to become Asia’s central green shipping hub. Three major ports owned by the central government—Deendayal Port Authority (Gujarat), V.O. Chidambaranar Port Authority (Tamil Nadu), and Paradip Port Authority (Odisha)—have been recognized as green hydrogen hubs under the National Green Hydrogen Mission.

Environmental Impact of Tech Infrastructure (Data Centers)

The global AI building boom, which relies heavily on data centers, is severely straining local infrastructure worldwide, including in India.

• Resource Strain: Data centers require vast amounts of electricity for computing and water for cooling. Similar concerns regarding resource strain have surfaced in India, alongside countries like Ireland, Chile, and South Africa.
• Local Disruptions: In communities near data centers in central Mexico, power cuts and prolonged water outages have increased, leading to school cancellations and health issues.
• Lack of Transparency: Tech giants like Google, Amazon, and Microsoft often use subsidiaries or service providers, masking their presence and revealing little about the resources consumed by these facilities.
• Government Policy: Many governments, eager for an AI foothold, offer welcoming policies, cheap land, tax breaks, and access to resources, often taking a hands-off approach to regulation. In Mexico's Querétaro, officials described power and water interruptions as "happy problems" associated with development, and stated that non-disclosure agreements (NDAs) with tech companies require keeping resource consumption information secret from the public and utility companies.
• Global Backlash: International opposition to data center construction is mounting, leading authorities in places like Ireland and the Netherlands to restrict new developments due to risks to power supplies and environmental concerns.