India’s services economy is showing broad momentum, but one segment has moved clearly ahead of the pack. The real estate sector recorded 24.7% year-on-year growth in June 2026, making it the fastest-growing of the 19 services sub-sectors tracked by the Ministry of Statistics and Program Implementation (MoSPI).
The result places real estate ahead of retail, wholesale and IT-related services and signals strong activity across the sector. With wider economic growth also remaining firm, this performance could strengthen the importance of real estate within India’s services economy.
The latest trial Index of Services Production (ISP), released by MoSPI, measures output across 19 services sub-sectors using 2024-25 as the base year. Its June 2026 reading shows that real estate expanded faster than every other segment covered by the index.
MoSPI’s June data also shows that eight of the 19 sub-sectors achieved double-digit growth compared with June 2025, while 18 recorded positive growth.
The real estate sector’s performance comes against a wider expansion in India’s economy. According to the same economic data, real GDP grew 7.8% year-on-year during the April-June quarter of FY27, exceeding the Reserve Bank of India’s earlier 7% estimate.
Real GDP was estimated at Rs 81.36 lakh crore in Q1 FY27, compared with Rs 75.46 lakh crore in Q1 FY26. Nominal GDP reached Rs 88.27 lakh crore, representing 10.3% growth from Rs 80 lakh crore a year earlier.
The June figures place real estate at the forefront of India’s services growth, while the wider data points to a broader expansion rather than an isolated sectoral rise. For the property market, sustained activity in the services economy can be an important backdrop for continued sector momentum.
The RBI has projected full-year GDP growth for FY27 at 6.7%, slightly higher than its earlier 6.6% forecast. The next quarterly GDP estimates, covering July-September, are scheduled for release in November.
June 2026 has given India’s real estate sector a strong position within the services economy. Its 24.7% growth rate stands out, particularly alongside positive performance across most of the 19 sub-sectors. At the same time, the figures should be viewed within the broader economic picture, where GDP is also expanding. Whether this momentum continues will become clearer as subsequent services and GDP data are released.
