Buyers Take Charge in India's Residential Real Estate Market in 2026
India’s residential real estate market is entering a buyer-led phase in 2026, as demand from people who want to live in the property takes precedence over investor-driven momentum, according to industry experts. With buyers becoming more selective and inventory offering greater choice, the market is shifting towards value, negotiation flexibility, and homes aligned with genuine ownership needs, they said.
This shift comes after a post-pandemic boom. Since 2019, property values in top cities have surged — Gurgaon and Hyderabad leading with over 80 per cent gains, followed by Bengaluru, Chennai, and Noida at 60–70 per cent, and strong performances in Pune and Mumbai, real estate platform NoBroker said. By 2025, year-on-year growth moderated to high single digits, reflecting market maturity backed by resilient developer balance sheets, smart capital use, and minimal distress. Prices are projected to hold firm through 2026, offering stability.
Affordability is guiding smart adaptations across the board. While the sub-Rs1 crore segment remains a cornerstone of urban demand, developers are innovating to include more buyers, said Saurabh Garg, cofounder and chief business officer of real estate platform NoBroker. By prioritising premium and luxury projects with strong margins, the industry is aligning supply with evolving preferences, fostering long-term value creation.
Developers are also responding proactively with disciplined launches. Bengaluru and Hyderabad are witnessing a rise in large-format projects and townships, with units per project reaching record highs as developers consolidate land and build scale-led gated communities. In contrast, Mumbai and Pune have entered a phase of supply contraction. In the Mumbai Metropolitan Region, new unit launches declined more than 35 per cent in 2025 as developers adopted inventory-led discipline, while Pune recorded a sharper 45 per cent drop as builders shifted to smaller, lower-risk projects amid inventory overhang and regulatory uncertainty. Hyderabad stands out as the only major market to record a year-on-year increase in new supply, NoBroker said.
Optimism surrounds potential home loan rate cuts in 2026, which could lower EMIs and activate mid-income buyers. Mumbai and Pune saw contractions in new supply in 2025, promoting inventory efficiency after prior expansions. Bengaluru and Hyderabad continue with resilient pipelines, emphasising premium gated communities and townships that deliver superior execution, pricing power, and land optimisation. This focus enhances quality and buyer appeal in core and emerging areas, said Garg.
