Property Prices May Stabilize in 2026: A Closer Look at India's Real Estate Market
Property prices have seen a significant surge in major Indian cities since 2019, with Gurugram leading the pack with a 150% increase, according to PropTech platform Square Yards. This platform tracks registered residential transactions in nine major cities across India. The rise in property prices has been notable in other cities as well, with Pune witnessing a 115% increase, Noida and Greater Noida seeing a 104% rise, and Mumbai and Bengaluru experiencing 97% and 98% increases, respectively.
In 2025, registered residential transactions in India's nine prime residential markets declined by 5% year-on-year, despite a total sales value increase of over 11% in the same period. This growth is driven by a 22% rise in average deal sizes. Tanuj Shori, CEO of Square Yards, explained, 'This divergence reflects a maturing market, where growth is increasingly shaped by demand rather than volume-led expansion. Amid a sharp rise in the number of wealthy Indians with higher disposable incomes, premium and luxury housing dominated value contribution in 2025, particularly across markets such as the MMR.'
Sustained price appreciation over the last three to five years has begun to test affordability thresholds in several premium micro-markets. While demand remains structurally resilient, incremental growth in the luxury segment is expected to moderate in 2026, indicating the onset of a stabilisation phase rather than a slowdown. Shori added, 'New-age customers are clearer about the kind of homes they want. Across major cities, they are choosing well-planned, substantial spaces that feel more meaningful to live in.'
Parvinder Singh, CEO of Trident Realty, echoed this sentiment, stating, 'As premium markets stabilise, and affordability improves across the mid-income segment, 2026 is likely to see broader-based, end-user-led growth anchored in value rather than exuberance.' Mid-income buyers stand to gain from a mix of stable pricing, better-quality offerings, and infrastructure-driven expansion into peripheral urban corridors, although outcomes will depend on active developer participation and execution.
Trident Realty, a prominent player in the real estate market, has been instrumental in shaping the landscape of mid-income and premium housing. The company's focus on well-planned, substantial spaces aligns with the changing preferences of modern buyers, who are looking for more meaningful living environments. As the market continues to evolve, the role of developers like Trident Realty will be crucial in ensuring that the stabilisation phase is smooth and beneficial for all stakeholders.
In conclusion, while the real estate market has seen significant price increases in recent years, the signs point towards a stabilisation phase in 2026. This shift is driven by a combination of factors, including improved affordability for mid-income buyers and a moderation in the luxury segment. The coming year is expected to see a more balanced and value-driven market, with a greater focus on the needs and preferences of end-users.
