Indian Real Estate: Housing Demand and Prices Poised for Growth in 2026

New Delhi: The Indian real estate sector is gearing up for a significant boost in the coming years, with almost two-thirds of developers expecting housing demand to grow by more than 5% and prices to rise by 10% in 2026. This optimistic outlook is based on a comprehensive survey that covered 650 developers across the country.

Despite global uncertainties, 42% of developers plan to launch more than one million square feet of new property next year. A significant portion of these developers, 38%, are based in the National Capital Region (NCR). The survey, conducted by Credai CRE Matrix, highlights a strong developer sentiment and confidence in the market.

While developers acknowledge near-term pressures in select markets, 83% of them expect their unsold inventory to sell out completely within the next two years. This reflects a robust confidence in sales velocity and end-user demand, indicating a healthy market outlook.

'The survey highlights steady demand expectations, disciplined supply addition, and a sharper focus on long-term value creation,' said Abhishek Kiran Gupta, CEO and cofounder of CRE Matrix and IndexTap. This sentiment is echoed by Shekhar G Patel, president of Credai, who emphasized the importance of faster approvals and greater regulatory clarity to sustain and accelerate the momentum.

Cost pressures appear to be moderating, with around 65% of surveyed developers reporting that project cost increases have remained below 10%. This is attributed to GST rationalization, the adoption of advanced construction techniques, and increased use of technology and robotics. These factors have helped developers maintain feasibility while continuing to scale their launches.

Streamlined clearances can unlock the next phase of housing supply across markets, support timely project delivery, and enable more balanced and sustainable urban growth, Patel added. This underscores the need for a supportive regulatory environment to foster the growth of the real estate sector.

Three-fourths of the developers identified end-user demand as the primary force driving residential real estate in the country. This is followed by brand reputation and developer credibility at 64%, highlighting how much buyers value trusted developers in their purchase decisions. The survey results indicate a strong alignment between developer strategies and consumer preferences, setting the stage for a promising future for the Indian real estate market.