Adobe StockMarket Radar: India Surges with 8.2% Growth and a Real Estate Renaissance
GDP beats estimates despite US trade tensions while Japanese investors bet big on Indian real estate
December 2, 2025Real Estate
Written by:Jorge Aguinaga
Key Takeaways
- India defied US trade tensions to post a stronger than expected 8.2% growth rate, though the achievement was clouded by a dispute with the IMF over a grade C rating for the quality of its national accounts data.
- Japanese property giants are pouring capital into India with Sumitomo Realty committing USD 6.5 billion to Mumbai projects, capitalising on construction costs that are a fraction of those in global hubs alongside surging rental yields.
- While Indian developers rush to capture Dubai’s booming property market, the domestic sector is maturing fast with the local REIT market projected to expand by INR 10.8 trillion over the next four years.
The Macro View
India’s economy has delivered a robust 8.2% growth rate for the July-September quarter, comfortably outpacing the market expectation of 7.3%.This acceleration, the fastest in six quarters, was driven largely by private consumption - which grew 7.9% thanks to tax cuts and festival stocking - and a 9.1% jump in manufacturing output.
However, this stellar performance arrives amidst a sharp divergence in economic narratives. Just days before the GDP release, the IMF assigned India’s national accounts a C grade, citing methodological weaknesses such as an outdated 2011-12 base year and a lack of seasonal adjustments.
While the Fund acknowledged that India’s statistics are broadly adequate for surveillance, it highlighted that the current data granularity makes it difficult to parse precise growth trends.
Indian authorities have pushed back strongly, labelling the rating "skewedly weighted" and arguing it overlooks the country’s progress.
The growth figures also defy significant external headwinds. Despite the shock of fresh 50% US tariffs on various Indian exports, domestic demand has provided a critical buffer.
Looking ahead, the IMF has lowered its forecast for the coming financial year to 6.2%, warning that prolonged tariffs could dampen investment.
Trend Spotlight
A fascinating dynamic is unfolding in India’s property market, characterised by a massive influx of Japanese capital and a strategic expansion of Indian developers abroad.Japanese Giants Move In
Japanese developers are increasingly viewing India as a primary growth engine. Sumitomo Realty has committed USD 6.5 billion across projects in Mumbai, describing the city as its second most important market after Tokyo.Similarly, Mitsui Fudosan is planning a fresh investment of up to JPY 35 billion (USD 225 million). The appeal is financial: construction costs for premium offices in Mumbai are just USD 656 per square metre - compared to over USD 8,000 in New York - while rents in key districts like Bandra Kurla Complex have surged 14.2%.
Indian Developers Go Global
Simultaneously, top Indian firms are capitalising on the booming Dubai market, where transactions hit USD 117 billion in the first half of 2025. Developers such as Sunteck Realty and Casagrand are launching major residential projects in the Emirate, drawn by high transaction volumes and a swift approval process.Sunteck alone has mapped out AED 15 billion in investments over the next three years to capture demand from global investors and resident Indians.