India’s real estate market holds steady in 2025, poised for solid growth in 2026: Report

India’s real estate sector maintained its momentum in 2025 and is set for a stable 2026, backed by strong economic fundamentals, steady consumer demand, government support, and sustained investor confidence, according to a report by Colliers.

Despite global supply chain disruptions, the sector held firm thanks to lower inflation, improved loan accessibility, and softer interest rates — factors that kept buyers active across residential, commercial, and industrial segments.

Office leasing remained resilient, with demand from technology, BFSI, engineering, and flexible workspace operators supporting activity across major cities. India crossed 50 million sq ft of office leasing in the first nine months of 2025, led by Global Capability Centres (GCCs). Grade A office demand is projected to touch nearly 70 million sq ft by year-end, with 2026 forecasts in the 70–75 million sq ft range. Companies are increasingly seeking modern, tech-enabled, and green-certified spaces.

The housing segment also performed well, driven by rising incomes, better affordability, and improved connectivity. Demand for premium homes, plotted developments, and gated communities is on the rise, with developers expanding into Tier II and III cities. Redevelopment and fractional ownership are also gaining traction.

Industrial and warehousing demand remained strong, fueled by e-commerce, logistics, engineering, and automotive sectors. Manufacturing growth and the evolution of modern supply chains are expected to further boost this segment in 2026.

Investor interest is shifting towards mixed-use developments and emerging asset classes like data centres, senior living, and co-living. Tier II and III cities are benefitting from this diversification.

Investment momentum is expected to continue through vehicles such as REITs, SM REITs, InvITs, and AIFs—making the market more accessible. Sustainability and technology-led designs will play a larger role in shaping future real estate projects.

(With inputs from ANI)