India's real estate market is poised for measured yet sustainable growth in 2026, with momentum expected across residential, office, retail, logistics, and emerging asset classes. Industry analysts believe strong economic fundamentals, rising demand for premium housing, and an evolving retail and logistics ecosystem will continue to attract both domestic and global investors in the year ahead.

While 2025 was marked by periods of macroeconomic volatility and geopolitical uncertainty, experts say 2026 is shaping up to be a year of stabilisation and renewed confidence for the sector.

Shrinivas Rao, FRICS and CEO of Vestian, noted that the outlook is supported by India's 8.2 percent GDP growth in Q2 FY26, achieved despite global challenges and shifting trade trends. With this pace of expansion, India remains on course to become the world's third-largest economy by 2030, with an estimated GDP projection of $7.3 trillion, he said.

To support economic activity, the government introduced a combination of fiscal and monetary measures, including GST rate rationalisation and revisions to income-tax slabs. On the monetary front, the RBI reduced the repo rate to 5.25 percent while retaining a neutral stance, a move expected to further stimulate growth in 2026.

According to Rao, the coming year is likely to bring broad-based sectoral expansion, stronger investment sentiment, and heightened real estate activity across key markets.

The office segment is projected to continue its upward momentum in 2026. Vestian Research estimates that gross absorption may reach 75-80 million sq ft, supported primarily by continued expansion from Global Capability Centres (GCCs).

The IT-ITeS and BFSI sectors are expected to remain core demand drivers, while flex-space operators are likely to deepen their footprint as occupiers prioritise hybrid working and operational flexibility. Leasing activity is anticipated to be led by Bengaluru, Chennai, and Hyderabad, with Mumbai and Pune also projected to see a rising share of transactions.

Prashant Sharma, President of NAREDCO Maharashtra, observed that 2025 was a milestone year for Indian real estate, characterised by major policy reforms, strong demand across segments, and increasing focus on sustainable urban development.

He added that Tier-II and Tier-III cities are set to emerge as key growth hubs in 2026, supported by better connectivity, expanding employment bases, and new industrial corridors that are gradually shifting demand beyond traditional metro markets.

Aniket Dani, Director at Crisil Intelligence, said the outlook for FY27 appears even more encouraging, with demand expected to improve further on the back of rising household incomes, softer interest rates, and continued infrastructure expansion.

He noted that commercial real estate is also likely to sustain its growth trajectory during the current fiscal, with demand expected to rise 5-7 percent and supply expanding 9-11 percent, supported by leasing activity from GCCs, flexible workspace players, IT-ITeS firms, and BFSI occupiers.

As India moves through 2026, the real estate sector appears firmly positioned on a path of steady, sustainable expansion, supported by resilient economic fundamentals, policy stability, and broad-based demand across residential, commercial, and emerging asset classes. The continued rise of Global Capability Centres, expansion of flexible workspace adoption, and the growing prominence of Tier-II and Tier-III cities signal a structural shift in market depth and geographical spread. With improving affordability, strengthening investor confidence, and infrastructure-led growth momentum, India's real estate industry is set to play a central role in the country's economic trajectory over the coming years.