Runwal Enterprises Ltd. IPO

India’s real estate sector has been a cornerstone of the economy, consistently contributing over 7% to the overall Gross Value Added (GVA) in the past decade. The sector has undergone a significant transformation over the last two decades, driven by technological advancements, a maturing ... investment landscape, and regulatory reforms. As CY 2020 approached, the industry was poised for growth after navigating through disruptions such as demonetization, GST implementation, RERA, and the NBFC crisis. However, the COVID-19 pandemic and subsequent nationwide lockdown disrupted this momentum, causing turmoil in the markets and distress in the realty industry. Despite these challenges, the real estate sector demonstrated remarkable resilience. The residential market began showing signs of recovery in Q3 CY 2021, driven by easing interest rates and improved affordability. Since then, it has achieved new milestones, with sales reaching unprecedented highs over the past 2-3 years. CY 2023 saw record-breaking sales of 290,425 units, surpassing the previous peak of CY 2010 by about 25%. New launches also hit a historic high of 306,543 units in CY 2023. The momentum continued into CY 2024 with the year achieving new historic highs. Sales was recorded at 321,518 units while new launches stood at 313,051 units. New launches maintained strong momentum in CY 2025, though slightly lower than CY 2024 reaching 96% of full-year 2024 volumes. Sales too maintained a healthy pace achieving 89% of the previous full year’s record highs. Several factors have contributed to this resilience, including rapid urbanization, rising income levels, the emergence of nuclear families, and enhanced financing options for developers and homebuyers. Moreover, the COVID-19 pandemic has further reinforced the desire for homeownership, acting as a catalyst for the residential sector. The office market has shown similar vibrancy. After reaching a historic high in net absorption of about 48.2 mn sq ft in CY 2019, the market experienced a setback due to the pandemic. However, it made a full recovery in CY 2022, surpassing the four-year pre-pandemic average (2016-19). Following 2022, the office market has demonstrated consistent growth with net absorption increasing each successive year. This upward trajectory reached its peak in 2025, when the market achieved its highest-ever annual net absorption of 57.0 mn sq ft, representing a significant milestone in India’s office market. Looking ahead, the sector has entered a phase of ‘accelerated growth’. The residential market is scaling new peaks, while the office market is expected to maintain robust absorption levels. These levels are anticipated to match and even surpass pre-pandemic peaks, with annual net absorption estimated to range between 50-60 mn sq ft from CY 2026 through CY 2028. This resilience and growth trajectory underscore the Indian real estate sector’s vital role in the country’s economic landscape and its ability to adapt and thrive in the face of challenges. Read more