NCR Realty Expansion Gains Amid Price Rise

India’s property market entered 2026 on a stable footing, supported by steady commercial leasing and a sharp uptick in new project activity across major urban centres. The first quarter recorded a 6% annual rise in leasing volumes to nearly 29.9 million square feet, signalling continued demand for office and workspace assets even as broader economic uncertainties persist.

This resilience in India real estate growth is being shaped by structural shifts in occupier demand. Global Capability Centres (GCCs), representing multinational firms expanding their India footprint, accounted for 48% of leasing activity during the quarter, up from 44% a year earlier. Urban planners note that this trend is reinforcing the role of large cities as global service hubs, but also placing pressure on infrastructure, mobility, and energy systems. While leasing activity remained firm, developer sentiment appeared notably more bullish. New project launches surged by 154% year-on-year to 14 million square feet, indicating renewed confidence in medium-term demand. However, a marginal dip in quarterly absorption suggests that supply may be running ahead of immediate end-user uptake, raising questions about inventory management and pricing sustainability.

Regionally, eastern markets emerged as unexpected leaders. Kolkata recorded the strongest quarter-on-quarter growth in leasing transactions, reflecting improving business sentiment and relatively lower occupancy costs compared to saturated metros. Meanwhile, the National Capital Region (NCR) dominated new supply additions, underlining its continued importance as a development hotspot despite concerns around congestion and environmental stress. Residential markets also saw upward price movement, with average values rising 14% annually to ₹14,633 per square foot. NCR and Kolkata reported the steepest increases at 15%, while Ahmedabad lagged with a modest 2% growth. Analysts suggest that rising input costs, coupled with premiumisation strategies, are driving prices higher, potentially impacting affordability for first-time buyers. A significant demographic shift is reshaping housing demand. Nearly 74% of buyers are now under the age of 35, prompting developers to recalibrate project designs, financing options, and digital outreach.

Industry experts point out that this younger cohort is more inclined towards compact, energy-efficient homes with access to public transport and urban amenities factors that align with sustainable city planning goals.Housing supply across 13 major cities expanded by 10% year-on-year, while active listings crossed 1.1 lakh units, reflecting a 10.1% annual rise. Despite this, demand remained largely stable on a yearly basis, growing by 1.5%, even as it declined slightly on a quarterly basis. The trajectory of India real estate growth suggests a market balancing optimism with caution. While capital inflows, leasing demand, and developer activity indicate momentum, the sector’s long-term health will depend on how cities manage infrastructure strain, ensure housing affordability, and integrate climate-resilient planning into rapid urban expansion.

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NCR Realty Expansion Gains Amid Price Rise