$4.5 billion investments, 60.7 million sq ft office leasing drive real estate optimism amid festive season

India’s real estate market is heading towards the end of 2026 on a positive note, supported by resilient residential demand, strong commercial office leasing and rising institutional investments. The festive season is expected to provide an additional boost to home sales and property launches, although affordability concerns and rising construction costs remain challenges for the sector.

According to Savills India, office absorption across the country’s top six cities reached 60.7 million square feet in the first nine months of 2026, registering a 6% year-on-year increase. The expansion of Global Capability Centres (GCCs), technology companies and financial services firms has continued to support demand for commercial office space.

Arvind Nandan, Managing Director, Research & Consulting at Savills India, said, “India’s real estate market is heading towards the close of 2026 on a constructive footing, supported by resilient residential demand, sustained occupier activity and growing institutional participation.”

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He added that residential activity was likely to remain broadly flat, although the festive season could provide limited upside to sales. Buyers are increasingly prioritising construction quality, location, connectivity, liveability and long-term value.

GCCs accounted for 30% of office leasing in year-to-date 2026, reinforcing India’s position as a major destination for global business and knowledge services. Bengaluru, Hyderabad and Delhi-NCR continue to attract commercial occupiers due to their established business ecosystems and infrastructure development.

Institutional investments rise 16%

Investment activity has also strengthened, with Savills India recording $4.5 billion in private equity investments in Indian real estate between January and September 2026, marking a 16% increase year-on-year.

While residential and office properties remain important investment destinations, industrial and logistics facilities, hospitality assets and data centres are gaining traction. Growth in manufacturing, e-commerce and supply-chain infrastructure is further supporting demand for warehouses and industrial spaces.

Festive season may support housing sales

In the residential segment, premium and luxury housing demand remains firm in Mumbai Metropolitan Region, Bengaluru, Hyderabad and Delhi-NCR. Developers are using attractive offers, flexible payment plans and new project launches to draw prospective homebuyers during the festive period.

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Yashank Wason, Managing Director of Royal Green Realty, said the festive season typically acts as a trigger for homebuyer sentiment, particularly in emerging Tier-2 markets such as Sonipat, Bahadurgarh and Rohtak. He also highlighted growing interest in plotted developments as buyers seek land ownership, flexibility and long-term value.

Rupam Dey, Head of Marketing Communication & Brand at Hubtown Limited, said the market outlook remained encouraging, supported by end-user demand, commercial leasing and institutional investments.