Reshaping the Future of Housing: Urbanisation, Premiumisation, and Green Living

Published: January 07, 2026 | Category: real estate news
Reshaping the Future of Housing: Urbanisation, Premiumisation, and Green Living

After years of rapid expansion driven by volume and velocity, the housing sector in India is transitioning toward value-led growth. Quality, location, and long-term liveability are now as important as price. This next phase is being shaped by the convergence of three key forces—urbanisation, premiumisation, and green living. These trends are increasingly intertwined, collectively redefining how and where homes are planned, built, and bought in India’s evolving urban landscape.

According to the 'India Real Estate 2026' report by Colliers, housing demand has remained persistent despite external pressures, setting the stage for sustained transformation. In the National Capital Region (NCR), urbanisation continues to redefine residential growth beyond traditional city cores. Housing demand is increasingly gravitating toward well-planned city extensions that offer a better balance between access and liveability. For homebuyers, connectivity is no longer just about the shortest distance; it’s about ease of movement, quality of surroundings, and the ability to live well without compromising on urban access.

Shyamrup Roy Chaudhary, Founder & Managing Director of AuraWorld, notes that residential real estate in 2026 will be less about owning a home and more about choosing a way of life. In Gurugram, buyers are increasingly value-driven, seeking seamless connectivity, social infrastructure, and homes that support modern urban living. 'What we’re seeing is a clear shift toward thoughtfully designed, premium residences that balance comfort with long-term value. Urbanisation today isn’t chaotic expansion; it's structured growth aligned with infrastructure and employment hubs. Developers who understand this evolution will shape resilient communities, not just housing projects,' Chaudhary said.

Large-scale investments in metro rail networks, expressways, transit corridors, and airports in 2025, particularly in the peripheral and suburban areas of Tier I cities, have emerged as key determinants for housing sales. These quiet locations keep affordable options available while being connected to main employment and lifestyle hubs. Dr. Gautam Kanodia, Founder of KREEVA and the Kanodia Group, believes that the housing cycle in 2026 will be defined by how well developers respond to emerging micro-markets. 'Locations like New Gurugram, SPR, Golf Course Road, and Golf Course Extension Road are becoming the new growth engines of NCR. Buyers here are aspirational yet practical, seeking larger homes, better planning, and future-ready infrastructure. Premiumization in these corridors is driven by lifestyle upgrades rather than status alone. Hence, these markets will represent a more balanced form of urbanisation where space, connectivity, and sustainability coexist,' Kanodia said.

Premiumisation has reshaped residential demand, with homes increasingly viewed as long-term lifestyle assets rather than mere shelter. Buyers are upgrading to larger configurations within branded developments that offer integrated living, professional management, and a stronger sense of community. There is a growing emphasis on well-designed spaces, enhanced security, and amenity-rich environments that support modern living patterns. This shift reflects rising aspirations, greater purchasing maturity, and a preference for quality-led housing that delivers both comfort and enduring value.

Ashwani Kumar of Pyramid Infratech highlights the significance of the Dwarka Expressway in Gurugram, which captures the direction residential real estate is heading in 2026. 'What began as an infrastructure corridor is now evolving into a full-fledged residential ecosystem. Homebuyers here are focused on long-term liveability—green spaces, energy efficiency, and well-planned communities matter as much as connectivity. Sustainability is no longer optional; it’s influencing both buyer trust and investment appetite. The future housing cycle will reward developments that integrate smart design with environmental responsibility, creating homes that remain relevant decades down the line,' Kumar said.

Sustainability is moving from the periphery to the core of residential decision-making. Homebuyers are increasingly factoring in energy efficiency, air quality, and access to open green spaces while evaluating housing options, driven by health awareness and long-term cost considerations. This shift is also resonating with investors, as ESG-aligned residential developments gain stronger institutional interest for their resilience and future-readiness. For developers, sustainability is no longer viewed as a regulatory obligation alone, but as a value-creation lever, enhancing asset longevity, market credibility, and overall project desirability in a more discerning housing market.

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Frequently Asked Questions

1. What are the three key forces shaping the future of residential real estate in India?
The three key forces shaping the future of residential real estate in India are urbanisation, premiumisation, and green living. These trends are increasingly intertwined and collectively redefining how and where homes are planned, built, and bought.
2. How is urbanisation redefining residential growth in the National Capital Region (NCR)?
Urbanisation in the NCR is redefining residential growth beyond traditional city cores. Housing demand is increasingly gravitating toward well-planned city extensions that offer a better balance between access and liveability, focusing on ease of movement, quality of surroundings, and the ability to live well without compromising on urban access.
3. What is the significance of premiumisation in the housing market?
Premiumisation has reshaped residential demand, with homes increasingly viewed as long-term lifestyle assets. Buyers are upgrading to larger configurations within branded developments that offer integrated living, professional management, and a stronger sense of community, emphasizing well-designed spaces, enhanced security, and amenity-rich environments.
4. Why is sustainability becoming
core consideration for homebuyers? A: Sustainability is becoming a core consideration for homebuyers due to health awareness and long-term cost considerations. Homebuyers are increasingly factoring in energy efficiency, air quality, and access to open green spaces while evaluating housing options. This shift also resonates with investors, as ESG-aligned residential developments gain stronger institutional interest for their resilience and future-readiness.
5. What role do large-scale infrastructure investments play in housing sales?
Large-scale investments in metro rail networks, expressways, transit corridors, and airports, particularly in the peripheral and suburban areas of Tier I cities, have emerged as key determinants for housing sales. These investments keep affordable options available while ensuring connectivity to main employment and lifestyle hubs, making these quiet locations attractive for homebuyers.