India’s real estate sector enters 2026 with a markedly different tone from previous cycles. After closing 2025 on a strong footing, the industry is no longer driven by speculative momentum but by measured, end-user-led growth, deeper institutional participation and a growing emphasis on long-term value creation. Developers, investors and advisors agree that the coming year will be defined less by speed and more by structure, substance and sustainability.
A Strong Base Going into 2026
Industry leaders describe 2025 as a pivotal year that cemented the sector’s post-pandemic transformation. Prashant Sharma, President, NAREDCO Maharashtra, termed it a landmark period shaped by policy reforms, robust demand across asset classes and a decisive move towards sustainable urbanisation. According to him, the sector has matured into a more transparent, technology-enabled and consumer-centric ecosystem, creating a strong platform for the next phase of growth.
This structural shift is expected to deepen in 2026, with the market transitioning from cyclical recovery to predictable, policy-aligned expansion. Stakeholders increasingly believe that Indian real estate is entering a phase where disciplined execution and governance will matter more than aggressive land banking or speculative launches.
Infrastructure as the Primary Growth Engine
Infrastructure remains the single biggest driver shaping expectations for 2026. Nowhere is this more visible than in the Mumbai Metropolitan Region (MMR). Vijay Choraria, Managing Director, Crest Ventures Limited, notes that connectivity has evolved from being an enabler to becoming the primary determinant of real estate value. Over the next five years, Mumbai is expected to emerge as a multi-nodal metropolitan region, with growth corridors such as Panvel, Virar, Alibaug and emerging eastern suburbs outperforming legacy pin codes.
Echoing this, Kamlesh Thakur, Co-Founder and Managing Director, Srishti Group, highlights that homebuyers are no longer judging locations by distance alone. Instead, accessibility, time efficiency and daily mobility are now central to purchase decisions. As metro lines, road corridors and multimodal transport projects near completion in 2026, several underserved micro-markets are expected to transition into mainstream residential and mixed-use destinations.
Residential Demand: Premiumisation with Caution
Residential real estate is expected to remain the backbone of the sector in 2026, driven largely by end-user demand. Kaushal Agarwal, Chairman, The Guardians Real Estate Advisory, points out that luxury and ultra-luxury housing has moved into the mainstream, supported by rising disposable incomes, NRI participation and a desire for asset-backed stability.
At the same time, multiple leaders caution that affordable housing continues to face pressure due to rising land and construction costs. Robin Pahuja, Co-Founder and Managing Director, ElitePro Infra, says the affordable segment urgently needs targeted government support, as cost inflation has narrowed viability for both developers and buyers. Industry expectations from the 2026 Budget include clearer definitions for affordable housing, enhanced incentives and improved access to finance.
Mid-income and aspirational housing, particularly in Tier II and Tier III cities, is expected to see sustained momentum. Pyush Lohia, Director, Lohia Worldspace, estimates that nearly 40 per cent of new residential launches in 2026 could come from non-metro markets, driven by better connectivity, regional investment corridors and relative affordability.
Redevelopment and Urban Renewal Take Centre Stage
In land-constrained cities, redevelopment is likely to remain a defining theme. Dhruman Shah, Promoter, Ariha Group, describes redevelopment as the most practical route to modernise ageing housing stock while enhancing living standards. With policy support and growing acceptance among societies, redevelopment is expected to accelerate further in 2026, particularly in Mumbai, Pune and parts of Bengaluru.
This trend aligns with the broader push towards sustainable urban densification, rather than horizontal sprawl, a theme policymakers are increasingly backing.
Design, ESG and the Flight to Quality
A clear expectation for 2026 is the continued flight to quality across asset classes. Shilpin Tater, Managing Director, Superb Realty, emphasises that real estate is no longer about constructing buildings but about creating human-centric, intelligent ecosystems. Buyers and occupiers are choosing fewer but better-designed spaces that prioritise wellness, technology and longevity.
This shift is expected to strongly favour ESG-compliant developments, a view echoed by Pawan Sharma, Managing Director, TRG Group, who believes sustainability standards will increasingly influence capital allocation, pricing power and occupier demand. Green buildings, smart energy use and responsible construction practices are likely to move from differentiators to baseline expectations in 2026.
Commercial Real Estate and Alternative Assets
Commercial real estate is expected to stabilise in 2026, with office leasing projected at 70–75 million sq. ft. annually, supported by global capability centres (GCCs) and flexible workspace operators. Sijo Jose, Co-founder, SpazeOne, notes that managed offices and plug-and-play formats are becoming mainstream as enterprises adapt to hybrid work models.
Beyond offices, alternative asset classes are drawing increasing institutional attention. Logistics, warehousing, data centres, co-living and senior living are expected to attract substantial capital. Anantharam Varayur, Co-founder, Manasum Senior Living, highlights that senior living is emerging as both a social necessity and a compelling investment theme, driven by India’s ageing population and evolving family structures.
Capital, Institutionalisation and Advisory-Led Growth
From a capital perspective, Nihar Jayesh Thakkar, Founder, The Mandate House, says the sector has entered a consolidation phase marked by reduced leverage, faster execution and stronger governance. This view is reinforced by Amit Goenka, Chairman and Managing Director, Nisus Finance, who points to the rapid rise in alternative investment funds (AIFs) and private credit as evidence of growing institutional confidence in Indian real estate.
Looking ahead, 2026 is expected to see deeper capital deployment, more structured financing solutions and heightened scrutiny on execution quality and risk management.
GST, Policy and Budget Expectations
GST remains one of the most critical issues shaping expectations for 2026. Several leaders, including Abhishek Raj, Founder and CEO, Jenika Venture, and Pyush Lohia, stress the need for GST rationalisation, particularly for under-construction properties. Allowing input tax credit (ITC) and reducing cascading taxes could lower end prices by an estimated 3–4 per cent, improving affordability and developer liquidity.
Budget expectations also include single-window clearances, higher home loan tax deductions, incentives for rental and green housing, and continued infrastructure spending. Stakeholders believe that policy stability, rather than aggressive reform, will be key to sustaining confidence.
Technology, Services and the Next Phase
Technology adoption is expected to accelerate in 2026, not just in construction but across planning, advisory and asset management. Navin Dhanuka, Director, ArisUnitern, notes that the industry is becoming increasingly data-driven and performance-led, with structured consulting, analytics and disciplined development management gaining prominence.
At the consumer end, Adarsh Narahari, Managing Director, Primus Senior Living, believes real estate is shifting from a product-led to a services-led business, particularly in senior and wellness-focused housing, where outcomes and quality of life will define value.
As India steps into 2026, the real estate sector stands at a point of measured optimism. Growth is expected to be steady rather than explosive, led by infrastructure, institutional capital, design intelligence and responsible development. If 2025 was a year of consolidation, industry leaders believe 2026 will be a year of conviction—where quality, governance and long-term relevance determine success. |
