Real Estate Developers Predict Strong Housing Demand and Price Increases in 2026
New Delhi: Indian real estate developers are optimistic about the future of the housing market, with almost two-thirds expecting housing demand to grow by more than 5% and prices to rise by 10% in 2026. This forecast comes from a comprehensive survey that covered 650 developers nationwide, conducted by the Confederation of Real Estate Developers' Associations of India (Credai) and CRE Matrix.
Despite global economic uncertainties, 42% of developers plan to launch more than one million square feet of new property in the coming year. A significant portion of these developers, 38%, are based in the National Capital Region (NCR), a key market for real estate development in India.
While developers acknowledge near-term pressures in select markets, 83% are confident that their unsold inventory will be sold out within the next two years. This confidence is driven by steady demand expectations and a focus on long-term value creation.
Abhishek Kiran Gupta, CEO and cofounder of CRE Matrix and IndexTap, noted, 'The survey highlights steady demand expectations, disciplined supply addition, and a sharper focus on long-term value creation.' This sentiment underscores the industry's commitment to sustainable growth.
Cost pressures, which have been a significant concern for developers, appear to be moderating. Around 65% of surveyed developers reported that project cost increases have remained below 10%, thanks to the rationalization of the Goods and Services Tax (GST), the adoption of advanced construction techniques, and the increased use of technology and robotics. These factors have helped developers maintain project feasibility while scaling their launches.
Shekhar G Patel, president of Credai, emphasized the importance of regulatory support. 'Faster approvals and greater regulatory clarity will be critical to sustain and accelerate the momentum,' he stated. Streamlined clearances can unlock the next phase of housing supply, support timely project delivery, and enable more balanced and sustainable urban growth.
End-user demand is identified as the primary force driving the residential real estate market in India, with 75% of developers citing it as the key driver. Brand reputation and developer credibility, at 64%, are also significant factors, highlighting the importance of trust in the purchase decisions of buyers.
Overall, the real estate sector in India is poised for a period of robust growth, driven by strong demand, disciplined supply management, and technological advancements.
