Real estate experts say a shift from unorganised to organised players, rising launches, and shrinking inventory are driving renewed investor confidence, even as data centres emerge as the sector's next big growth engine.After a prolonged slowdown that had many writing off the sector just months ago, India's real estate stocks are showing signs of a genuine turnaround. The Nifty Realty index climbed 6% over the past month, and according to Vijay Agrawal, MD at Equirus Capital, this isn't just a temporary blip, it reflects real, on-ground improvement.Sales data backs the rallySpeaking to ET Now, Agrawal noted that year-on-year figures for pre-sales and collections have come in strong, which is now getting reflected in stock price gains across the Nifty Realty pack. While the growth isn't as dramatic as previous boom cycles, gains have ranged between 4% and 6% rather than the sharper spikes seen earlier, the momentum is real and measurable across square footage, unit sales, and overall transaction value.Three factors are driving this shift, Agrawal explained: a structural move from unorganised developers to listed, organised players; a pickup in new project launches after last year's slowdown; and a corresponding decline in unsold housing inventory, all pointing to a healthier supply-demand balance.Which cities are leading?The recovery isn't uniform across India. Mumbai's market remains largely stagnant, while Pune and Bangalore are showing strong growth, and Hyderabad has also posted gains despite an oversupply situation. The National Capital Region is seeing moderate growth led by Gurgaon, with Noida also picking up pace, and Kolkata is expected to open up significantly this year.You Might Also Like:Are rising costs a threat to demand?Despite a reported 6% year-on-year dip in housing sales across India's top seven cities, developers aren't cutting prices. Instead, they're absorbing rising input costs, cement, steel, and labour, through modest price hikes that buyers have historically tolerated. Agrawal said the market typically expects and accepts price increases of 5% to 7% annually, and with cement and steel prices now stabilising, developers can absorb these costs while protecting their margins. Rather than slashing prices, developers are leaning on festive-season discounts and one-time payment schemes to sustain sales momentum.Data centres: The sector's next big betBeyond housing, data centres are emerging as a major growth avenue for real estate developers. India's current capacity stands at roughly 1.4 gigawatts, with industry targets pointing toward 10 gigawatts within five years, though Agrawal expects actual delivery to land closer to 6-7 gigawatts by 2030.The economics are compelling: while a typical office building costs a few thousand rupees per square foot to construct, data centre construction costs run into tens of crores per square foot, translating into significantly higher rental yields and valuation multiples for developers who get it right.However, the space demands serious technical expertise. Developers without specialised knowledge risk struggling, prompting many to partner with dedicated data centre operators. Companies like Anant Raj are already scaling aggressively, with dozens of megawatts operational and hundreds more in the pipeline. Equipment supply chains, particularly HVAC systems, have become a critical bottleneck, with delivery timelines stretching from a few months to over a year.You Might Also Like:Who's actually buying homes?Interestingly, the demand story has shifted beyond IT professionals. Self-employed individuals and salaried employees across sectors are now driving home purchases, with most listed developers concentrating on mid-premium and premium segments rather than affordable housing, where activity remains limited.Bottom line: With improving sales metrics, controlled inventory, and a lucrative new data centre vertical opening up, analysts believe India's realty sector may be entering a more sustainable, if measured, growth phase.You Might Also Like: