India's Secondary Real Estate Market to Capture 43% Share by FY25: Square Yards Report

India’s Real Estate Market Sees a Shift: Secondary Sales Surge to 43% by FY25

The Indian real estate market is undergoing a significant transformation, driven by a growing preference for ready-to-move-in homes. According to a recent report by Square Yards, the secondary residential market has experienced a remarkable increase in share, rising from 38% before the pandemic to an anticipated 43% by FY25.

What is the Secondary Market?

In simple terms, the secondary market refers to the buying and selling of homes that have already been owned or occupied. Unlike the primary market, where buyers purchase newly constructed properties directly from developers, the secondary market deals with pre-owned properties. This shift towards the secondary segment has been particularly noticeable in well-connected, established locations, where demand for ready homes has surged.

CEO Insights from Square Yards

Tanuj Shori, the CEO and Founder of Square Yards, shares insights into this growing trend, stating, “Our data indicates that the growth in the secondary market is not just a temporary shift. There is sustained demand for ready-to-move-in homes, and this trend is pushing more buyers towards secondary properties.” Shori adds, “This momentum is expected to continue, with both primary and secondary markets driving residential demand.”

Rise in Transactions Across India’s Key Cities

The latest Square Yards report, titled “Primary Vs Secondary: Unpacking Demand Trends in India’s Residential Market,” highlights an impressive increase in registered residential transactions. From 3.07 lakh units in FY 2019, the total number of transactions is projected to rise to 5.44 lakh units by FY 2025—a 77% increase.

Market Share Breakdown

In FY 2025, primary market transactions—representing the first sale of properties directly from developers to buyers—will account for 57% of the total market share. Meanwhile, the secondary market will take a significant 43% share. The data also shows a clear increase in volume, with secondary transactions rising from 1.22 lakh units in FY 2019 to 2.33 lakh units by FY 2025.

The Growth of Secondary Market

The secondary real estate market has seen a growth trajectory that cannot be ignored. For instance, primary market transactions have risen from 1.84 lakh units in FY 2019 to an expected 3.11 lakh units in FY 2025, reflecting the overall boom in India’s residential property market. The report analyzes key cities such as Bengaluru, Hyderabad, Mumbai, Navi Mumbai, Noida, Pune, and Thane, where the growth of secondary property sales is most notable.

The Future of Real Estate in India

With these growing trends, industry experts predict that the momentum in both primary and secondary markets will continue to escalate. The preference for homes that are ready for immediate occupancy is fueling a surge in demand for secondary market properties, and this shift will shape the Indian real estate landscape in the coming years.