Take It From Torbit - 26 Trends To Shape Real Estate In 2026

This article outlines how the sector is set to transition from rapid expansion to a more balanced, value-driven phase. From the rise of mid-segment housing and rationalised pricing to the growing influence of AI, proptech and joint developments, 2026 will be defined by efficiency, affordability and end-user focus. The report highlights emerging opportunities across residential, office, retail, industrial, co-living and senior living segments, alongside a strong push towards sustainability, wellness, infrastructure-led growth and transit-oriented development—collectively signalling a more mature, tech-enabled and demand-aligned real estate market in the year ahead.

1. Expansion to Equilibrium

The residential sector will be moving from a phase of expansion to equilibrium. As premium markets stabilise and affordability improves, 2026 will likely witness broader-based, end-user-led growth anchored in value rather than exuberance. Transaction volumes are expected to remain steady, average ticket sizes elevated and price growth more evenly distributed across segments.

2. Advantage Mid-Segment

With housing inflation moderation and price growth stabilisation in several saturated markets, affordability for mid-income buyers is set to improve significantly. The mid-segment stands to gain from a mix of stable pricing, better quality offerings and infra-driven expansion into peripheral urban corridors. As a result of this, mid-segment properties priced between INR 80 lakh- INR 1.5 crore) are poised to drive incremental demand.

3. AI to Reshape Brokerage Industry

2026 will see active usage of AI across the value chain, from shortening the operational cycle to driving data-backed marketing to showcasing property options to potential clients. AI will reduce cost and timeline not just for customers but also for the brokerage houses, thereby resulting in cost optimisation for all stakeholders involved.

4. Joint Developments

In view of rising land prices, leading to overpriced properties, resulting in decline in demand/sale of residential properties, going forward in 2026, we will see more joint development agreements. Real estate developers will be increasingly partnering with landowners to ensure project cost optimization and to hedge risks.

5. Towards Tech-Enabled Workforce

2026 will see strengthening of a shift towards a more tech-enabled and continuously evolving real estate workforce., with organizations successfully integrating technology with people practices rooted in global excellence. This will help in delivering sustainable growth in the real estate sector.

6. Transformation in Job Roles

With greater convergence of proptech, digitalization, automation and AI, real estate job architecture will evolve rapidly in 2026 & beyond. Traditional roles will rapidly evolve into tech and analytics -driven and customer-centric functions, creating demand for entirely new skill sets. The most in demand roles will be those that combine domain expertise with digital fluency.

7. Newer Organizational Challenges

With growing pressure of regulatory compliance and customer transparency needs, a key challenge before organizations will be to develop compliance-conscious models across diverse roles and aligning capability building with transparency expectations as customers today demand timely, accurate and ethical commitments. This will call for documentation discipline and data accuracy.

8. Rise of Peripheral Office Districts

As investors and occupiers are increasingly looking for modern office buildings conforming to ESG standards with built-to- suit and campus-style developments with large floor plates, real estate developers will be increasingly developing office complexes in the peripheral areas where large economical land tracts are available to meet the requirements of investors and occupiers.

9. Tailored, Not Templated Interiors

One of the most defining interior trends for 2026 will be the departure from standardized layouts and catalogue-driven designs. More and more home owners will be commissioning bespoke interiors that reflect personal taste.

10. Smart Zoning For Lifestyle Living

The rise of luxury housing is reshaping interior design expectations as buyers are increasingly going in for residential properties for self-use rather than for investment purposes. In 2026, home interiors will be designed into specific zones like meditation and prayer areas, informal workspaces, reading and wellness zones, seamlessly integrated into living spaces.

11. Big is Beautiful For Industrial & Warehousing

Industrial and warehousing segment which is set for boom times in 2026, on account of double-digit growth in 2025, will continue to follow the mantra of 'Big is Beautiful' with large transactions. Last year, transactions above one lakh sq ft formed 38% of total absorption and this trend is likely to get strengthened in 2026.

12. Purpose-Built Student Accommodation (PBSA)

The co-living segment which will witness greater traction in 2026, will find real estate developers taking up student housing in a big way with focus on PBSA to narrow down demand-supply gap., In 2025, against the demand for 12 million organized beds, the supply was merely 0.3 million beds. In view of this, the market size is projected to reach INR 6800 crore by 2030.

13. Premiumization of Retail Market

Supported by a broader pipeline of global brand rollout, platform partnerships and supply of high-quality malls, will now be extending into Tier-2 cities. We will see return of mall-led supply getting operational in key markets. The quality supply, premiumization and the release of pent up demand will lead to scaling up of retail market.

14. Auto-Driven Realty

The year 2026 may well see the entry of luxury car brands entering into the lucrative real estate sector, especially eyeing the fast-emerging exclusive luxury housing segment of branded residences. A couple of premier global auto brands are said to be in talks with real estate developers for partnerships to develop luxury housing.

15. New Models in Co-Living

In 2026, co-living will be marked by several new trends. There will be consolidation happening in this segment with the acquisition of unorganized players. Going forward, we will witness the trend of partnerships with educational institutions besides local partnerships, particularly in Tier 2-3 cities.

16. Religious Destinations-Next Hotspots For Senior Living

With senior living segment set for potential boost owing to big demand-supply gap, religious destinations getting massive infra and connectivity boost, will emerge as the next frontiers of senior living. There is an increasing interest among NRIs for senior living in religious hotspots. Besides many senior people want to settle in religious towns of Vrindavan, Ayodhya, rishikesh, Rameshwaram etc.

17. AI-Powered Built-To- Suit Data Centres

AIs AI and cloud computations are redefining the DC ecosystem, going forward, DC operators are likely to focus more on AI-powered, built-t0-suit and controlled colocation models to ensure data security, regulatory compliance and low latency processing. Also, with growing emphasis on edge computing and 5G roll out, , there will be acceleration in the development of edge data centres.

18. Lifestyle & Infra-Driven Home Choices

As homebuyers become more conscious about modern living, they are increasingly putting emphasis on lifestyle amenities and sound infrastructure for ease of living and commuting. There are homebuyers who are consciously investing in water-front houses, green homes, Highrise homes with wrapped balconies or homes near mass rapid transport systems and in emerging areas with growing infrastructure.

19. Health Supporting Real Estate

In 2026, real estate -both residential and commercial, will be further moving towards comprehensive health-supported ecosystem with sustainable design and wellness technologies. There will be greater focus on Oxygen-optimized low AQI spaces with air filtration. There will be growing preference for holistic and regenerative design with use of natural materials to support overall health of communities.

20. Nature-Friendly Living

Going forward in 2026, there will be greater emphasis on nature-friendly living. The trend of farm living including gated farmhouses in suburbs will catch up further. Home buyers will be preferring those housing projects which have large open areas, parks , rooftop gardens, courtyards and large balconies. Biophilic designs and focus on integrating indoors and outdoors will be the trend gaining traction in 2026.

21. Less For More-Architectural Mantra

The 2026 architectural mantra will be a heady mix of minimalism and functionality, with emphasis on simplicity but comfort. The standout feature will be wellness architecture, focusing on air circulation, natural light and enrgonomic design. The architecture will be guided by sustainability, smart technology and human-centric design.

22. Towards Rationalized Realty

The unaffordable property prices in 2025, witnessed a major dent in affordability. This, despite the spurt in luxury real estate, saw slackening of demand and slowdown in home sales. considering this scenario including peaking of luxury housing, we may well see rationalization of property prices, especially in overheated markets. developers may also focus on compact homes to keep prices low and boost sales.

23. Revival of Affordable Housing

The year 2026 may well see the revival of affordable housing which faced a major setback with both demand and supply seeing a major decline due to unprecedented rise of luxury housing and runaway increase in property prices. Budgetary policy reforms, together with real estate developers likely taking to mid-priced homes, will provide a much-needed push to affordable housing. Co-lending for affordable housing by banks and NBFC may further help boost this segment.

24. Sustained Demand for Home Loans

With continuous demand for luxury housing, likely policy boost for affordable housing, low interest rates and infra and connectivity boost, the overall housing loan demand in 2026 will remain intact. This demand will be further positively impacted with further drop-in interest rates and faster transmission of policy rates.

25. Retrofitting and Redevelopment Boost

In 2026, real estate-both residential and commercial, will get a major boost with old residential societies, slums obsolete office developments and dead shopping malls going for retrofitting and redevelopment amidst growing demand for modern lifestyle oriented and sustainable spaces by property buyers, investors and occupiers. The INR 1 lakh crore Urban Challenge Fund unveiled in last budget will further provide a push to redevelopment, in turn boosting real estate.

26. Boost to Transit-Oriented Development

As over a dozen state governments pursue TOD policies the central government giving a big push to boost infrastructure development and connectivity, Transit-Oriented Development (TOD) will see a noticeable growth in 2026 and beyond. As TOD, an urban planning strategy promoting high-density mixed-use development around public transport hubs helps in boosting affordable housing and check urban sprawl, the Centre may well come up with incentivised policy to promote TOD.

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