India’s real estate market steadies up as 2026 begins, showing early signs of resilience
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Summary: Housing demand holds up, commercial leasing improves, and office space activity slowly picks up pace.
As 2026 begins, India's real estate sector is finally showing signs of stability after a long period of turmoil. Across housing, commercial leasing and office space, the early trends suggest demand isn’t collapsing — and in some pockets, it’s quietly strengthening.
On the housing front, buyers remain active, especially in mid-tier and affordable segments. Following years of poor sales and cautious mood, developers and brokers are cautiously confident that the worst may be behind them. Prices have moderated in many cities, making homes slightly more affordable, and that’s drawn interest from both first-time buyers and investors looking for long-term value.
The office real estate scene — hit hard during the height of the pandemic as companies embraced remote work — is showing gentle signs of revival. While Grade-A space continues to attract the most interest, some firms are returning to physical workspaces or expanding existing leases as hybrid work models become more entrenched. That isn’t a full rebound yet, but it’s a change from the broad contraction seen over the past few years.
Commercial leasing, particularly for retail and warehousing, has also been steady. Urban retail areas are experiencing an increase in visitors, while logistics centres are sought after because of e-commerce and supply chain investments. Numerous analysts believe this sector has been one of the most stable parts of real estate during recent fluctuations.
One prominent development is the increased use of institutional capital in real estate. Large investment organisations, including global players, are increasingly interested in Indian assets, particularly data centres, warehousing, and quality office parks. Their involvement adds liquidity and encourages more structured deals, which is a positive signal for the market’s longer-term prospects.
Housing markets are finding their feet, commercial leasing is holding steady, and office demand — though uneven — is inching forward. For an industry that’s been tested repeatedly over recent years, these early signs of stability are being welcomed by developers, investors and buyers alike.
