

Mint Explainer | What India's real estate market holds for you in 2026
Mint explains.India’s housing sector recorded its second consecutive year of declining sales in 2025, as high prices eroded affordability. Despite a fall in sales volume, rising prices led to growth in transaction value, as developers moved towards premium housing.In contrast, commercial real estate surged, with strong leasing momentum for good office space. Flexible workspaces gained more favour among occupiers and investors, as leading operators such as WeWork India Management Ltd, Indiqube Spaces Ltd, Smartworks Coworking Spaces Ltd went public.Global capability centres (GCCs) emerged as a key office occupier class in the top-tier cities.
Industrial real estate and warehousing have been on a roll in terms of demand and leasing, as well as land acquisition and investments. Despite global trade uncertainties, logistics were largely driven by manufacturing demand in the country.The dent in home sales in the last two years was preceded by a sharp rise, as the residential sector recovered from the pandemic. Those euphoric days of a boom cycle are over.
Even so, sales are expected to remain stable and moderate in 2026, with credible, branded developers outperforming their peers. Property analysts believe the market is healthy with unsold inventory levels still under control and good demand for housing.Housing sales will also depend on property prices and new project launches. In 2025, the average residential price growth rate tapered down to a single digit.
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