Real Estate 2026: Trouble Ahead Or Recovery Already Underway?

India’s real estate sector is entering a decisive phase in 2026. After a strong post-pandemic boom, momentum slowed in 2025 as rising home prices pushed residential sales down by nearly 14%. Yet, prices continued to climb, led by luxury housing, which has surged 30-40% over the last three years. While affordability pressures are cooling mass housing demand, premium homes and top cities remain resilient. The real action is shifting to commercial real estate, with office leasing expected to grow 15-18%, driven by IT firms, Global Capability Centres and manufacturing expansion. Delhi-NCR and Mumbai will lead value growth, Bengaluru volumes, and Hyderabad emerges as a fast catch-up market. Bottom line: real estate isn’t slowing- it’s evolving, becoming more selective, premium-led and office-driven.