India's Real Estate Sector Set for Major Boom in 2026
India's real estate sector is gearing up for a major growth spurt in 2026. The expected boom is mainly due to strong domestic consumption, steady occupier demand, and sustained institutional investor confidence. The market has emerged broader, deeper, and more institutionalized over the past year, with growth seen across commercial, residential, industrial, and alternative asset classes.
Badal Yagnik, CEO & MD of Colliers India, said the Indian real estate sector is entering 2026 with stronger growth prospects. He noted that commercial and residential growth will remain robust. This is largely due to evolving workplace strategies, rising homeownership, and infrastructure-led connectivity enhancements. The demand for industrial and warehousing spaces will also accelerate as domestic manufacturing scales up and supply chains modernize.
Yagnik also highlighted that alternative asset classes like data centers, co-living, and senior living are likely to attract more institutional interest. The growth of REITs, SM-REITs, and InvITs will further strengthen India's long-term real estate growth story. This is in line with a rising focus on sustainability and technology-led development in the sector.
Office leasing remained strong through 2025, with over 50 million sq ft leased in the first nine months. Global Capability Centres (GCCs) accounted for nearly 40% of this absorption. The demand was supported by evolving workplace strategies, diversification of the occupier base beyond technology, and a growing preference for Grade A, amenity-rich assets.
The trend of flex workspaces is set to become a structural component of occupier portfolios. They are expected to account for nearly 20% of Grade A leasing as companies adopt agile 'Core + Flex' models. This shift will help them manage costs and scale efficiently while sustainability and technology increasingly define office development and leasing decisions.
The residential markets also remained firm in 2025, thanks to improved affordability, income growth, and infrastructure-led expansion of suburban and peripheral micro-markets. Housing sales across major cities are estimated at 0.3-0.4 million units, broadly in line with the previous year. Infrastructure upgrades such as metro extensions, expressways, and new airports have expanded residential catchment areas near office hubs.
