India’s real estate sector is poised to enter 2026 with renewed momentum, buoyed by resilient domestic consumption, steady occupier demand, and sustained institutional investor confidence. After navigating global trade uncertainties and easing inflationary pressures in 2025, industry experts say the market has emerged broader, more institutionalised, and increasingly technology-driven, with growth expected across commercial, residential, industrial, and alternative asset classes.
“Indian real estate is entering 2026 with greater depth and structural growth across asset classes. Robust domestic demand, rising investor confidence, and infrastructure-led urbanisation will underpin continued expansion,” said a senior Colliers India executive. Commercial leasing remains strong, with office absorption exceeding 50 million sq ft in the first nine months of 2025, led by Global Capability Centres (GCCs) which accounted for nearly 40% of uptake. Analysts note that Grade A, amenity-rich assets continue to attract occupiers, while hybrid work models are driving adoption of flex-space strategies, with nearly 20% of Grade A leasing now integrating flexible footprints. Sustainability and technology are emerging as decisive factors in leasing and development. Nearly 80–90% of new office supply is expected to be green-certified by 2026, and retrofitting of older buildings for energy efficiency and wellness compliance is anticipated to accelerate. “ESG-compliant and health-conscious workplaces are increasingly preferred by corporates, reflecting evolving occupier priorities,” noted an industry expert.
On the residential front, housing demand has held firm, supported by affordability, rising incomes, and infrastructure-driven expansion of suburban micro-markets. Sales in major cities are projected between 0.3-0.4 million units, with developers targeting Tier II and Tier III cities for lifestyle-led developments such as gated communities, premium apartments, and senior living projects. Real estate operators are increasingly embedding technology to enhance health, safety, and wellness outcomes rather than focusing solely on ownership. India’s industrial and logistics sector continues to outperform, with 26.5 million sq ft absorbed in the first nine months of 2025. Demand is led by e-commerce, third-party logistics, and manufacturing expansion under initiatives such as Make in India, Production Linked Incentives, and Gati Shakti. Analysts predict annual demand of 30-40 million sq ft in 2026, driven by plug-and-play industrial parks, hyperlocal fulfilment centres, and growth in Tier II and Tier III corridors. Alternative assets including data centres, co-living, and senior housing are increasingly attracting institutional interest, reflecting urban migration, demographic shifts, and lifestyle demand. The national data centre market has doubled over five years, now surpassing 1,300 MW, while co-living and senior housing are formalising into investible, scalable segments.
Institutional inflows remained resilient in 2025, with $6 billion invested across office, residential, and alternative assets. Experts expect 2026 to see $6-7 billion of capital deployment, supported by domestic investors, expanding REITs, and a growing focus on sustainable, technology-enabled urban development.
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