Homesfy Realty Ltd Management Discussions

India’s economic growth is projected at 6.5% in FY25, reflecting a moderation from the previous fiscal year’s marked growth of 9.2%. This slowdown can be attributed to continuing uncertainties in global trade and cautious domestic investment activity, especially in the context of recent proposals for tariffs on Indian exports to the United States. In spite of these external pressures, India’s underlying economic fundamentals remain strong. The year was marked by buoyant domestic consumption, improvement in agricultural output due to supportive monsoon conditions, and resilient performance in the services sector.

The inflation environment became sharply more favourable over the review period. Headline inflation fell to 3.34% in March FY25, representing the lowest reading in the last five years. The decline was broadly driven by a significant reduction in food inflation which reached 2.69%. Softening inflation in housin g and fuel added further support. In response to these conditions, the Reserve Bank of India undertook two repo rate reductions, bringing the benchmark rate down to 6.0% and signalling continued monetary support for growth as inflation remains contained.

Sectorally, there is evidence of continued positive momentum. Manufacturing is seeing an improvement on the back of rising capacity utilisation, a stable policy regime, and sectoral incentives. While global challenges have weighed on certain export-oriented businesses, robust domestic demand, supply chain diversification, and improvements in logistics have supported growth in consumer and light manufacturing.

Infrastructure activity benefited from focused government investment and fiscal support, lifting business confidence across industrial and allied sectors. The services sector maintained steady growth, reinforced by ongoing demand and favourable market conditions.

Strength in internal demand is reflected in resilient

Goods and Services Tax collections, which registered a 9.4% increase to reach 22.08 lakh crore for FY25. This demonstrates the continued resilience of India’s formal consumption base and progress in compliance and tax collection practices. Looking forward, the Reserve Bank of India maintains its growth outlook for FY26 at 6.5%, with early estimates suggesting an improvement to 6.7% in FY27. The stage is set for stable medium-term growth, underpinned by sound macroeconomic management, demographic advantages, ongoing formalisation, and continuing economic reforms.

India’s real estate sector remains integral to the national economy, supporting more than 250 ancillary industries and contributing to employment generation at a significant scale.

With 18% of the country’s workforce engaged in this sector, real estate stands as one of the largest employment creators after agriculture. The current estimated market size of the Indian real estate industry is USD 482 billion, accounting for 7.3% of the nation’s total economic output. Projections indicate that by 2034, the sector could expand to USD 1.5 trillion and contribute 10.5% to economic output, reflecting both the ongoing urban transformation and growth in consumption across the country.

Demand for real estate in India is broad based, fuelled by factors such as a rapidly urbanising population, rising disposable incomes, greater aspirations for quality housing, and strong growth in the commercial segment. Urbanisation has moved at an accelerated pace, with more individuals and families seeking improved lifestyles and better infrastructure in cities. Additionally, the growth of sectors such as hospitality, organised retail, and logistics continues to translate into increased demand for commercial real estate, and modern offices.

E-commerce, in particular, has proven transformative, generating a marked rise in the requirement for and storage capacity, while technological progress and the digital economy have led to the creation of new asset classes, including data centres and advanced logistics parks. Government policy has played a pivotal role in driving growth and formalisation across real estate. Forward looking initiatives such as the government’s focus on affordable housing, the Smart Cities Mission, tax relief on home loans, and incentives for housing for all, have collectively fostered increased investment and provided impetus for supply creation. Measures in favour of digitising land records, regulating the market through legislations such as the Real Estate Regulatory Authority Act, and encouraging public private partnerships, have made the sector more transparent, accountable, and attractive to both domestic and overseas capital.

The residential real estate market in India has witnessed notable transformation over the last two decades. Policy reforms, economic cycles, and structural shifts have shaped the sector into its current state. Events such as the global financial crisis in 2008, demonetisation, the implementation of the Goods and Services Tax, periodic liquidity challenges, and the COVID 19 pandemic temporarily restrained growth. Nevertheless, these events also prompted greater formalisation, improved regulatory oversight, and restored confidence among homebuyers. The introduction of the Real Estate Regulatory Authority Act has been instrumental in improving transparency and safeguarding buyers’ interests. India’s residential sector is presently characterised by vigour, as ongoing economic momentum, rising wealth, and a renewed focus on personal home ownership continue to drive demand. There has been a marked shift in consumer aspirations, as more households are now seeking not only affordable and mid segment homes but also premium and luxury residences. This transition is underpinned by higher disposable incomes and the proliferation of high paying jobs in services industries like IT, banking, and financial services.

In 2018, luxury housing across the top 8 cities formed 16% of total sales. By 2023, the share had doubled to 34%, highlighting a significant growth in demand for upscale homes. Despite this growth in the high end, affordable and mid price homes remain fundamental, meeting the core needs of the rising urban and aspiring rural population.

By 2034, India’s population is projected to reach 1.55 billion, with an urban population share of 42.5%. To accommodate this demographic transformation, urban centres are estimated to require an additional 78 million housing units between 2024 and 2034. The value of this residential demand could equate to USD 906 billion over the coming decade. Furthermore, the share of households categorised as high net worth or ultra high net worth is expected to grow from the current 3% to 9% by 2034, reinforcing continued demand for luxury housing. At the same time, the concentration of lower middle and upper middle income groups will preserve robust demand for affordable and mid segment options. Alongside large cities, there is considerable potential for smaller towns and rural markets to develop into urban like centres, further diversifying demand for housing.

India’s commercial real estate sector continues to demonstrate resilience and outperformance, particularly when measured against global benchmarks. The sector has benefited from a range of government interventions, including the development of special economic zones, export oriented units, and software technology parks. In recent years, the impact of international economic trends such as the widespread adoption of remote working has led to a rebalancing of global commercial markets. Although many developed markets report muted office leasing activity, India’s top 8 cities registered an aggregate office transaction volume of 60 million square feet in 2023.

Growth in the IT and business process management sectors, the establishment of Global Capability Centres, an increasing number of India centric businesses, and the expansion of co working and flexible office space have all contributed to this momentum. Artificial intelligence, data science, and other technology driven businesses are reshaping office space requirement patterns in major cities. By 2030, India is projected to host an estimated 2,400 Global Capability Centres, with this number rising to 2,880 by 2034, as the country continues to solidify its status as a global powerhouse for innovation and technology exports.

Commercial real estate is also benefitting from increased institutional investment. Positive sentiment is supported by ongoing infrastructure improvements, logistics efficiency, and sector friendly policy initiatives. Furthermore, the and logistics segment is registering high growth, fuelled by the flourishing digital economy, quickly expanding e-commerce, and the establishment of large scale data centres.

The prospects for India’s real estate sector remain robust and broad based. Rapid urbanisation, rising income levels, strong demographics, and supportive government policy are set to underpin consistent and sustainable growth. Demand is expected to extend across affordable, mid price, and luxury housing, reinforced by potential in smaller towns and upcoming urban centres.

In the commercial segment, the continued development of technology, manufacturing, and services industries, along with increased foreign capital participation, are likely to sustain high absorption levels in office and industrial assets.

The demand for logistics infrastructure, and data centres is projected to accelerate in tandem with advancements in technology and the digital transformation of the economy. As the sector moves forward, it will be marked by greater formalisation, improved transparency, and increased adoption of sustainable and smart solutions. The collaboration between public and private participants, coupled with innovation and adaptive business models, will maintain India’s real estate as a central driver of economic growth, employment, and inclusive development for years to come.

Mumbai’s residential market in 2024 recorded sales of 96,187 units, registering 11% year-on-year growth. New launches totalled 96,470 units, representing a 4% annual rise. Sales in properties priced above 10 million constituted 34% of total transactions. The 20 to 50 million segment grew by 34%, reflecting ongoing demand for larger homes and improved amenities. Sales in the sub- 5 million segment declined, a trend attributed to supply constraints and shifting preferences toward mid and high-value properties. Residential prices increased by 5% year-on-year. The Central Suburbs and Thane continued to lead in new supply and absorption. Inventory expanded, with a Quarters to Sell metric of 7.2 quarters. In the office market, leasing volumes rose by 40% year-on-year. Office rents grew by 4.1%, driven by continued demand from domestic businesses and infrastructure upgrades.

In 2024, Pune’s residential sales rose 6% year-on-year, supported by high demand from IT professionals and infrastructure projects. New launches increased by 40% for the year and 49% for the second half. The mid-range segment ( 5 to 10 million) accounted for 45% of H2 2024 sales, while homes above 10 million comprised 23%, up from 18% the previous year. Inventory increased by 18% but remained well absorbed, with a Quarters to Sell of 3.7 quarters. Residential prices rose 6% year-on-year. Launch activity concentrated in Hinjewadi and Baner provided consistent supply aligned with preference shifts toward gated communities and larger units.

Bengaluru’s residential market in H2 2024 recorded a 1% year-on-year increase in sales, reaching a 10-year annual high. The 10 to 20 million segment led with 35% of citywide sales, and the 20 to 50 million bracket expanded to 21% of sales. Inventory in higher-priced categories increased, with a 38% year-on-year increase in the 10 to 20 million segment and a 154% increase above 100 million. Quarters to Sell across major premium categories remained stable at 2.2 to 9.1 quarters, while lower-priced properties exhibited slower absorption. South and East Bengaluru contributed the most, supported by transport expansions and proximity to employment zones. North Bengaluru saw rising launches and demand due to airport access and infrastructure works. Residential supply shifted outward as buyers sought well-connected options. In the office market, leasing volumes reached 1.7 million square metres, up 45% year-on-year, maintaining Bengaluru’s office sector leadership.

Hyderabad’s residential market in 2024 posted sales of 36,974 units, growing 12% year-on-year. West Hyderabad accounted for 63% of transactions, primarily due to proximity to employment hubs. In H2 2024, homes above 10 million represented 63% of transactions, with the 10 to 20 million segment increasing 28% year-on-year. Sales of homes under 5 million declined 41%. Residential launches declined 6% for the year, following new regulatory oversight, and inventory rose to 52,544 units. The market saw quicker absorption in premium segments, reflected by lower Quarters to Sell. Residential prices increased by 8% for the year. The city’s current demand is sustained by ongoing projects in infrastructure, education, and healthcare.

NCR’s residential market in H2 2024 recorded 30,119 units launched and 28,656 units sold. Gurugram remained the largest submarket, with 51% of launches and 49% of sales.

Properties priced above 10 million accounted for 88% of sales, up 30% year-on-year. Sales of affordable homes below 5 million declined. Noida and Greater Noida collectively comprised 33% of sales, while Ghaziabad retained a 13% share. Regional inventory increased by 3% year-on-year to 106,652 units. Quarters to Sell for the region was 7.3. Residential prices in NCR increased by 6% year-on-year, driven primarily by premium launches. Ongoing and planned infrastructure projects, such as the Dwarka Expressway and regional metro extensions, continued to shape demand at the city and micro-market level.

India’s real estate agency and brokerage industry is witnessing a foundational transformation, shaped by regulatory clarity, market formalisation, technological innovation, and rising consumer expectations. As real estate demand strengthens across both residential and commercial segments, brokerage firms are evolving rapidly to stay relevant in a more transparent and service-oriented ecosystem. The shift from fragmented, commission-driven models to structured, tech-enabled and multi-service platforms is evident across urban and semi-urban markets.

The brokerage business, once fragmented and largely informal, is now formalising at scale. The implementation of the Real Estate (Regulation and Development) Act has mandated agent registration, periodic renewal, and adherence to compliance norms across states. Brokers are now regarded as regulated professionals under the supervision of state RERA authorities. This has led to growing trust among homebuyers, developers, and institutional clients. Industry bodies such as NAR India have enhanced this shift by promoting ethical conduct and continuous training. Verified agent databases, licensing enforcement, and client grievance mechanisms are further reinforcing sector-wide discipline. Over time, formalisation is expected to attract skilled talent and institutional partnerships into the brokerage ecosystem.

Technology is redefining the way brokerage services are delivered and consumed. From AI-driven property recommendations to immersive virtual tours, digital tools are becoming integral to property transactions. Brokers are now leveraging CRM platforms, video consultations, and mobile-first engagement to improve response time and client satisfaction. Peer-to-peer portals have introduced commission-free models, prompting traditional firms to evolve their value proposition. In addition, financial technology integrations such as instant home loan approvals and online documentation are streamlining the buyer journey. Some firms are also piloting blockchain applications for property title verification and smart contracts. As digital adoption accelerates, firms that embrace a technology-first approach will be best placed to scale efficiently.

Brokerages are increasingly offering comprehensive, bundled services to enhance client retention and operational relevance. This includes assistance with home financing, legal documentation, property registration, interiors, leasing, and resale advisory. Many digital platforms have embedded mortgage APIs and EMI calculators to support buyers during decision-making. Firms are also developing property management and asset monetisation services to support long-term ownership needs. This end-to-end approach enables multiple revenue streams, deeper client engagement, and higher cross-sell potential. It also positions brokerage firms as lifecycle partners rather than one-time transaction agents, a shift that aligns with evolving customer expectations for convenience and trust.

Brokerage firms are now serving a more diverse set of clients across a broader range of property types. While homebuyers continue to dominate residential demand, the rise of retail participation in commercial real estate through REITs and fractional platforms has opened new advisory avenues. Investors are also showing growing interest in emerging segments such as data centres, co-working spaces, senior living, and logistics parks. These new asset classes require specialised knowledge in compliance, yield optimisation, and institutional-grade presentation. Brokerages that build capabilities in alternative formats can unlock higher-margin advisory mandates. Additionally, a growing number of nonresident Indians are seeking seamless investment support, making cross-border transaction management a promising growth area.

As clients become more discerning and informed, the brokers role is evolving from deal-making to insight-driven advisory. Firms are increasingly leveraging market intelligence, behavioural analytics, and transaction data to provide informed guidance on pricing, investment timing, and project selection. Developers are also relying on brokers for feasibility studies, absorption forecasts, and micro-market mapping. Some firms have built proprietary valuation tools and demand analytics to support high-quality consultations. This data-led approach is not only improving decision-making but also establishing brokers as strategic partners in high-value transactions. As the industry matures, the demand for transparent, data-backed advice will continue to grow, reinforcing the shift towards research-centric service delivery.

The industry is witnessing a shift towards platform-led aggregation, where digital-first brokerage firms and aggregator models are gaining traction. These platforms combine centralised lead generation, proprietary data analytics, and standardised customer journeys to create scale advantages. Some firms are also building agent networks under unified brands, offering shared marketing, CRM tools, and compliance infrastructure. This model allows local agents to operate with greater efficiency while enhancing brand trust among consumers. In parallel, a few well-capitalised players are expanding through acquisitions and strategic partnerships, leading to consolidation in Tier 1 and Tier 2 cities. The future landscape is likely to be dominated by professionally run, brand-led broker networks that offer both reach and reliability.

The emergence of co-broking platforms marks a pivotal shift in how real estate brokerage services are delivered, especially in a market as fragmented as India. Traditionally, brokers operated in silos with limited visibility into wider inventory and low collaboration across networks. This not only restricted scalability but also resulted in inefficiencies and lost opportunities. Co-broking platforms address these challenges by enabling multiple brokers to collaborate on verified listings in a structured, technology-enabled environment. They act as digital marketplaces where inventory, leads, and commissions are transparently shared, creating a more efficient and trust-driven ecosystem.

The growing formalisation of the real estate industry, backed by regulatory frameworks such as RERA, has created a strong foundation for such models to thrive. Many platforms now integrate digital tools such as lead management systems, e-documentation, CRM integrations, and payment gateways to enable seamless transactions. This transformation is allowing brokerages, especially small and mid-sized ones, to scale operations, expand customer reach, and improve service quality without proportionally increasing overheads. In a landscape where access to inventory and speed of execution are key differentiators, co-broking platforms offer the infrastructure needed to compete, collaborate, and grow.

Co-broking platforms allow brokers to serve multiple geographies and client segments without investing in physical branch expansion. This platform-led scalability supports business growth while keeping operational costs in check.

Access to verified inventory from multiple sources increases the likelihood of property match, resulting in faster deal closure and enhanced client satisfaction. Brokers can respond to buyer requirements more accurately and in shorter timeframes.

Integrated tools such as digital documentation, lead tracking, and centralised dashboards standardise operations and reduce errors. These capabilities reinforce client trust and create a more professional service experience.

Smaller brokers can now participate in high-value transactions and project mandates that were earlier inaccessible. Co-broking platforms provide the visibility and operational rigour required to engage with developers and institutional clients.

Concerns around lead protection and client retention deter many brokers from sharing critical information. This trust deficit limits the full potential of platform-based collaboration.

While urban brokers are adopting digital tools rapidly, agents in smaller cities continue to rely on informal processes. This digital divide creates inconsistency in service delivery and platform engagement.

With no industry-wide norms for commission sharing, documentation, or dispute resolution, many transactions are prone to delays or misunderstandings. Stronger governance frameworks are essential to address this gap.

Multiple competing platforms have emerged without a unified inventory source or standard onboarding process. Many brokers, particularly in Tier 2 and Tier 3 markets, remain unaware of the long-term benefits of co-broking models.

Homesfy Realty is one of India’s leading real estate broking companies, operating at the intersection of technology, scale, and service excellence. The Company serves as a critical enabler in the home-buying value chain by connecting developers, brokers, and homebuyers through structured processes, technology-led platforms, and a professionalised approach to intermediation. Homesfy’s differentiated model integrates both direct broking and channel-driven sales, making it one of the few players in the country to operate at scale across multiple distribution formats.

The Company’s core broking business is anchored by a team of in-house agents, who manage the complete transaction lifecycle, from lead generation and property discovery to site visits and deal closure. This is complemented by Homesfy’s proprietary technology platform, mymagnet.io, which aggregates third-party brokers under a single digital ecosystem. The platform is designed to empower external agents with access to inventory, workflow tools, CRM capabilities, and transparent commission structures, thereby creating a scalable and asset-light model of market penetration. Homesfy’s offerings go beyond traditional broking. Through its mandate business, the Company secures exclusive marketing rights for select real estate projects, working closely with developers on high-touch, end-to-end execution. It also operates a growing home loans vertical that provides financing solutions through partnerships with banks and non-banking institutions, supporting buyers across the affordability spectrum.

With a presence in Mumbai Metropolitan Region, Pune, Bengaluru, Noida, and Hyderabad, the Company is strategically positioned in India’s high-demand urban corridors. Its emphasis on technology, standardisation, and customer experience is aligned with the ongoing formalisation of the real estate sector. As industry expectations shift towards accountability, transparency, and seamless service, Homesfy remains focused on strengthening its role as a trusted partner in the organised residential real estate ecosystem.

FY25 was a year of strategic consolidation for Homesfy, during which the Company balanced near-term execution challenges with long-term capability building. Gross

Transaction Value (GTV) stood at 2,280 crore, registering a 2% increase over FY24. This growth was supported by higher average ticket sizes, which rose by 22% year-on-year to approximately 1.3 crore per unit.

Revenue from operations declined marginally to 58.7 crore in FY25 from 60.9 crore in FY24. This moderation was primarily attributable to reduced transaction volumes in the core direct broking segment, where GTV declined by 9% and gross bookings fell by 24%. The impact was most visible in Bengaluru and Navi Mumbai, where delayed launches and cautious buyer sentiment tempered momentum. Despite this, the channel business demonstrated strong resilience. The Company’s broker aggregator platform, mymagnet.io, reported a 60% year-on-year increase in GTV to 569 crore and a 26% growth in gross bookings. This shift underscores the increasing relevance of technology-led, asset-light distribution models in the real estate ecosystem.

The home loans vertical disbursed loans worth 271 crore during the year, up 12% over FY24, reflecting growing adoption among end-users. Homesfy also initiated its mandate-based business, securing early-stage engagements and building a robust pipeline of exclusive project mandates.

These efforts represent the early phases of a diversified, full-service proposition. On the profitability front, EBITDA stood at 1.55 crore compared to 3.33 crore in FY24, while Profit After Tax declined to 1.37 crore from 2.71 crore in the previous year. The reduction in profitability was driven by lower operating leverage, higher investment in technology infrastructure, and salesforce expansion.

Entering FY26, the Company’s strategic priorities are centred on reinforcing high-performing micro-markets such as Thane, Pune, and Central Mumbai, while acceleratingProfit its presence in Western Mumbai, Harbour, and South Mumbai. Homesfy also expects to activate a wider set of mandate relationships and deepen its value proposition with developers.

The mymagnet platform is projected to scale further, building on its current momentum to expand geographic coverage and broker participation. Investments in CRM systems, process automation, and funnel optimisation are expected to support operational efficiency and improve lead-to-sale conversions.

With a three-pronged strategy spanning direct broking, channel aggregation, and exclusive mandates, the Company is focused on creating a scalable and differentiated model. Supported by technology, governance, and a growing market opportunity, Homesfy remains committed to achieving its long-term vision of facilitating 5,000 home sales annually by FY29.