Scale Gives Way To Substance

As India steps into 2026, the real estate sector finds itself at an inflection point. The frenetic pace of post-pandemic recovery has matured into a more measured, value-driven growth cycle. Developers, investors, and homebuyers alike are recalibrating priorities — shifting focus from sheer volume and speculative momentum to quality, governance, sustainability, and long-term asset creation.

Across residential, commercial, and emerging asset classes, industry leaders see 2026 as a year defined by consolidation, diversification, and design-led development — anchored by strong fundamentals such as urbanisation, infrastructure expansion, rising incomes, and demographic shifts. While some market observers remain cautious, several developers believe that high-quality projects will continue to outperform broader trends.

Aakash Ohri, joint MD and CBO, DLF Homes, describes 2026 as a defining phase for the sector. “While some market experts have issued cautious outlooks, we firmly believe that high-quality projects will continue to be outliers that surpass market trends,” he says. According to Ohri, the momentum built in 2025 is expected to carry forward, driven by luxury-led growth, sustained NRI participation, and the rise of high-potential corridors such as Gurugram, Mumbai, Hyderabad, and Bengaluru.

Broadening the Asset-Class Pie

One of the most defining shifts in the real estate outlook for 2026 is the expansion of non-traditional asset classes. According to Dr. Niranjan Hiranandani, chairman, NAREDCO, the sector’s scope is set to widen meaningfully. “Looking ahead into 2026, we anticipate that the real estate industry’s asset-class pie will broaden meaningfully. Emerging segments like senior living, student housing/co-living, service apartments, branded residences, and coworking spaces are ready to claim larger shares of the overall market,” he states.

This evolution is being reinforced by developers who expect a more sophisticated expression of urban living as economic fundamentals align with large-scale infrastructure development. Echoing this view, Ohri says, “We anticipate new formats gaining prominence — senior living, vacation homes in leisure destinations, and ultra-luxury developments that redefine residential living in India.” He adds that favourable government policies and ongoing infrastructure upgrades across major cities will play a critical role in strengthening connectivity, improving civic amenities, and boosting investor confidence. Ohri also expects greater adoption of public–private partnerships, enabling closer collaboration between private enterprises and the government in shaping the next decade of India’s urban and infrastructure growth.

Senior living, in particular, is poised for exponential growth, with the organised segment expected to grow nearly fivefold by 2030. Co-living and coworking segments, fuelled by urban migration and flexible work cultures, are also gaining scale — transforming real estate into a diversified, resilient investment landscape.

From Volume to Value

A recurring theme across industry voices is the decisive shift from volume-led growth to value-driven development. Rishabh Periwal, senior vice president, Pioneer Urban Land & Infrastructure, underscores this transition. “Looking ahead to 2026, the market is set to pivot from volume to value. The emphasis is clearly moving toward quality — sustainable planning, integrated townships, technologically advanced living, and timely delivery as a non-negotiable benchmark,” states Periwal.

This sentiment is echoed by Dr. Gautam Kanodia, founder, KREEVA and Kanodia Group, who believes that quality-led development will dominate across housing, office, and retail segments. “The market will clearly shift from volume-led growth to quality-led development and long-term value creation,” he says, adding that integrated lifestyle offerings will outweigh pure square-footage considerations.

Premium and Luxury Housing

While affordability remains important, premium and luxury housing continues to command strong demand, albeit with a more discerning buyer base. Madhusudhan G, CMD, Sumadhura Group, sees premium and luxury homes consolidating their leadership in key southern markets. “Increasing incomes, enhanced lifestyles, and consistent NRI investments are transforming investment preferences,” he says, highlighting Bengaluru and Hyderabad as frontrunners.

Luxury housing itself, however, is undergoing a clear transformation. Sarveshaa SB, CMD, Bhadra Group, believes the segment is evolving into a more holistic offering. “Luxury housing is evolving into a more holistic proposition that brings together design excellence, sustainability features, and smart technologies to enhance everyday comfort and long-term value,” he says.

As buyer aspirations advance, Sarveshaa points to rising demand for integrated developments. “There is a significant opportunity for innovative formats, well-planned townships, and mixed-use communities that integrate lifestyle, connectivity, and wellness,” he adds, noting that the momentum built in 2025 provides a strong foundation for the year ahead, reinforcing homebuyer confidence and strengthening residential real estate’s role in India’s broader growth story.

At the same time, luxury itself is being redefined at a practical level. Ashish Agarwal, director, AU Real Estate, observes that today’s buyers are no longer swayed by superficial markers. “Just calling something ‘luxury’ doesn’t cut it anymore. True luxury today is about smart design, utility, and everyday comfort — not just fancy materials.”

Mid-Segment Housing

Despite the spotlight on premium housing, the mid-segment remains the backbone of India’s residential demand. Ramji Subramaniam, MD, Sowparnika Projects, believes 2026 will continue to balance aspiration with affordability. “Continuous infrastructure growth, digital adoption in construction, and a greater focus on sustainable, community living will further accelerate interest in this category,” avers Subramaniam.

Adding to this, Anuj Mehta, director & CEO, The Dhuleva Group, points out that both mid-income and premium housing are benefiting from buyers’ growing aspiration for a better quality of life, supported by disciplined project launches and timely execution.

Infrastructure as the Primary Growth Catalyst

Infrastructure continues to be the most powerful determinant of real estate value. From metro corridors and expressways to airports and urban redevelopment, connectivity-led growth is reshaping buyer preferences. Developers expect that significant infrastructure upgrades underway across Indian cities will begin to materially influence real estate outcomes through enhanced connectivity, improved civic amenities, and stronger investor confidence.

In the Mumbai Metropolitan Region (MMR), Aakash Patel, MD, Atul Projects, highlights the rise of integrated ‘live-work-play’ environments. “Improving connectivity across key corridors will keep demand strong and increasingly driven by buyers who want integrated living,” he says, pointing to Mulund and Navi Mumbai as long-term value drivers.

Similarly, Mukul Bansal, co-founder & MD, Motiaz, cites expressway-led development in North India, where integrated townships are commanding price premiums due to sustainability-led planning.

Micro-Markets, Governance and Disciplined Capital

As capital becomes more selective, developer credibility is emerging as a decisive differentiator. Ashish Puravankara, MD, Puravankara Limited, outlines three clear signals for 2026. “Growth will be led by discerning customers who prioritise product quality, readiness, and trust in the developer. Capital deployment, both domestic and global, will favour developers with strong governance and disciplined balance sheets,” he elaborates.

Reinforcing this, Rishi Raj, CEO, Conscient Infrastructure, advises buyers to focus on structurally strong micro-markets and verifiable delivery records. “The projects that will truly succeed are those that combine the right micro-market with credible governance, design excellence, and proven delivery capabilities,” he asserts.

Sustainability, Technology and Wellness Go Mainstream

What was once considered optional has now become foundational. Sustainability, ESG compliance, and wellness-centric design are increasingly shaping both residential and commercial real estate. Abhishek Trehan, executive director, Trehan Iris, notes that health and environmental quality are now central to upcoming projects, particularly in high-AQI regions. “Our forthcoming developments are designed to offer wellness-centric living experiences,” he says.

In commercial real estate, Ashish Sharma, AVP operations, Brahma Group, points to rising rental values and demand for future-ready office spaces driven by global and domestic occupiers.

Flex Workspaces and Branded Residences Enter the Mainstream

New-age formats are no longer niche. Sanjay Chatrath, co-founder & managing partner, Incuspaze, expects 2026 to be a landmark year for flex workspaces. “Stock is projected to cross 100 million sq.ft., with over 50% of corporate office portfolios moving into flexible formats,” avers Chatrath.

At the premium end, Rajat Khandelwal, group CEO, Tribeca Developers, believes branded residences are firmly entering the mainstream. “Customers are increasingly seeking long-term value backed by strong developer pedigree and professional property management,” emphasises Khandelwal.

Financing, Affordability, and Buyer Confidence

On the financing side, stability and inclusion remain key. Munish Jain, chief business officer, Capri Global Housing Finance, expects affordability to improve further if policy support and potential rate cuts continue. “Affordable housing will remain the sector’s key growth engine, supported by peripheral urban areas and emerging towns,” anticipates Jain.

Meanwhile, Kishan Govindaraju, executive director, Vaishnavi Group, points to festive-season momentum extending into early 2026, benefiting both buyers and developers.

The Road Ahead

Summing up the broader outlook, Siddharth Vasudevan Moorthy, MD, Vascon Engineers Ltd., highlights how policy reforms like RERA and GST have transformed buyer expectations. “Customers now expect quality, timely delivery, and sustained value creation,” he accentuates.

As Aksha Kamboj, executive chairperson, Aspect Global Ventures, observes, 2026 may well mark the first full year of structured, opportunity-led growth — where transparency, smart planning, and customer experience define success.

In essence, Indian real estate in 2026 is no longer about building faster; it is about building better. The winners will be those who align design with demand, governance with growth, and ambition with accountability.