India's Real Estate Market Outlook: What to Expect in 2026

Bengaluru, Jan. 2 -- India's real estate market is poised to continue its upward trajectory in 2026, with significant growth anticipated across key asset classes such as housing, office, and logistics. However, the performance of these segments is expected to vary, with non-residential sectors likely to outperform residential properties.

India's housing sector, which witnessed a post-COVID-19 boom, experienced a slowdown in 2025. The decline in sales volume can be attributed to high property prices that eroded affordability for many potential buyers. Despite the decrease in sales volume, the transaction value in the housing sector continued to rise as developers shifted their focus towards premium and luxury housing projects.

In contrast, the commercial real estate market has shown robust growth, particularly in the office and logistics segments. The demand for high-quality office spaces has surged, driven by the increasing adoption of hybrid work models and the need for modern, flexible work environments. This trend has led to strong leasing momentum and a positive outlook for commercial office assets.

The logistics sector has also seen significant growth, driven by the rapid expansion of e-commerce and the need for efficient supply chain management. The demand for modern logistics facilities, including warehouses and distribution centers, has increased, creating opportunities for investors and developers.

While the residential market faces challenges, the non-residential segments are expected to drive the overall growth of the real estate sector in 2026. The government's initiatives to promote infrastructure development and ease of doing business are likely to further boost the real estate market. Additionally, the implementation of policies aimed at improving transparency and governance in the sector is expected to attract more institutional investments.

In summary, India's real estate market is set to remain resilient in 2026, with non-residential sectors such as commercial office and logistics leading the way. The residential market, although facing some headwinds, is expected to stabilize and potentially recover in the long term. Investors and stakeholders should closely monitor these trends to capitalize on the opportunities presented by the evolving real estate landscape in India.