India’s Property Market 2025–2026
The property market in 2025 showcased a complex yet vibrant landscape — from boom in luxury housing to overall sales volume decline, rising prices across major cities, and reshaping demand patterns. While certain segments celebrate growth, others grapple with affordability concerns. This comprehensive blog offers a deep dive into the latest real estate developments, combining current news, expert perspectives, market statistics, policy impacts, future projections, and what it means for homebuyers and investors.
1. Global Real Estate Outlook — A Bifurcated Recovery
India’s Property Market 2025–2026
The global real estate market in 2025 and outlook heading into 2026 reflects a world of contradictions. In some regions, commercial and residential real estate has shown resilience, while others face slowing demand.
A recent JLL global outlook highlighted improving fundamentals in major regions driven by economic growth tailwinds, albeit with ongoing headwinds from interest rates and geopolitical risks.
Similarly, industry leaders at global gatherings such as MIPIM 2025 pointed out that geopolitical tensions and rising borrowing costs are forcing developers and investors to rethink strategies, pushing diversification and sustainability to the forefront.
🇮🇳 2. India’s Property Market: Growth Amid Slowdown
a. Volume vs Value — A Unique Market Scenario
India’s housing market recorded a second straight annual drop in new home sales volume in 2025, with sales volumes declining more than 10% across major cities. Despite this, the value of those sales increased, signaling a shift toward more expensive, premium homes and higher ticket transactions.
This divergence — falling units but rising sale value — is emblematic of a stark bifurcation between affordability strains for average buyers and resilient demand from high‑net‑worth individuals (HNWIs) and investors.
b. Metro Sales & Price Growth
According to a recent Knight Frank India report, Mumbai maintained its position as the country’s largest residential market in 2025, with approximately 97,000 units sold and a 7% rise in average prices. Office leasing similarly saw strong absorption, especially in Grade A commercial spaces.
Meanwhile, property prices across Indian metros continued an upward trajectory, with quarterly growth rates between 7%–19% — supported by strong buyer interest and ongoing urban migration.
3. Luxury & Premium Segment: The New Sweet Spot
India’s Property Market 2025–2026
Premium Homes Dominate
Across India, the premium housing segment has become the focal point of market growth:
Apartments priced ₹2–5 crore now contribute significantly to total housing sales, offsetting declines in smaller mid‑income segments.
Demand for luxury and ultra‑luxury homes surged as HNWIs and NRIs seek long‑term real estate assets with lifestyle differentiators.
According to the CBRE‑ASSOCHAM 2025 real estate study, luxury housing sales jumped around 85% YoY, led by regions such as Delhi‑NCR and Mumbai, which together accounted for nearly 90% of total launches.
Why Premium, and Why Now?
Several forces are driving the premium market:
Wealth expansion, particularly among affluent Indian families and global investors.
Diversification of investment portfolios amid macroeconomic uncertainties.
Lifestyle aspirations — amenities, quality, and location are increasingly decisive.
In urban hubs, premium properties provide not just shelter but long‑term wealth preservation — a narrative that is increasingly resonant among aspirational buyers today.
4. Regional Scenes & City Dynamics
India’s Property Market 2025–2026
a. Delhi‑NCR & Gurgaon
Delhi‑NCR remains one of India’s most active and dynamic property markets. The region benefits from strong employment hubs, improved infrastructure, and robust demand pipelines.
In Gurgaon, a landmark development occurred as the Real Estate Regulatory Authority (RERA) approved 131 projects across the city worth over ₹86,000 crore, set to deliver nearly 35,000 housing units. This underscores investor confidence and continued construction activity in the region.
b. Bengaluru & Emerging Hubs
Even with steep price growth, mid‑to‑high end segments in Bengaluru saw some slowdown in sales due to cautious buyer sentiment after price surges and broader market uncertainties, including potential IT sector layoffs.
However, analysts note that infrastructure expansions, such as metro connectivity and highway improvements, continue to support long‑term demand in tier‑2 and tier‑3 markets like Pune, Lucknow, and Indore.
5. Affordability: The Looming Challenge
Despite furious price movements, a pressing concern remains: housing affordability for the middle class.
A Reuters‑sourced analysis revealed that rising prices are pushing many middle‑class buyers into rental markets rather than homeownership, amplifying demand for rentals while shrinking the pool of qualified buyers.
This trend underlines a structural issue — while wealthier buyers chase premium properties, traditional home ownership is becoming increasingly challenging for first‑time buyers.
6. Commercial & Office Space — Resilience and Evolution
India’s commercial real estate continued to show remarkable resilience in 2025, particularly in the office leasing space.
Reports indicate that office demand — especially from Global Capability Centers (GCCs) — remained robust, with over 50–70 million sq ft of Grade A office space leased during the year, despite broader macroeconomic headwinds.
This trend reflects strong corporate demand for quality office environments, particularly those incorporating sustainability and technology features.
7. The Role of Technology and Sustainability
As the property market evolves, technology and sustainability are becoming central themes:
Governments and industry bodies are pushing digitization of land records to streamline processes and attract foreign investment.
Developers are increasingly focused on green building certifications and energy‑efficient projects, responding to both environmental considerations and consumer demand.
Digital tools — from AI‑powered property valuations to virtual tours and blockchain‑enabled transactions — are revolutionising how property is bought, sold, and managed.
8. Market Cycles and Future Outlook
Navigating Cycles
Indications from industry observers suggest that the real estate market, like any mature asset class, is cyclical:
Some analysts believe the sector may be entering a market correction phase as supply outpaces demand in select hotspots.
Timeframes for recovery could potentially extend into late 2026 or later if broader economic variables — such as interest rates and job markets — do not strengthen.
Expectations for 2026
Despite short‑term challenges, many market players remain optimistic:
Luxury and premium homes are expected to continue outperforming other segments.
Commercial space demand should stay healthy with hybrid work models requiring flexible modern spaces.
Policy initiatives, such as tax incentives for homebuyers, could help revive affordability and boost transactions.
9. What Prospective Buyers & Investors Need to Know
Buyers
Research local price trends: Prices vary greatly between regions and segments.
Focus on fundamentals: Connectivity, employment hubs, and future infrastructure matter.
Affordability planning: Consider total cost of ownership, not just purchase price.
Investors
Long‑term perspective works best: Real estate rewards patience and location foresight.
Diversify strategies: Consider residential, commercial, and alternative assets like REITs.
Leverage technology: Smart homes and sustainability can enhance property value.
🏁 Conclusion
The real estate and property market in 2025 presents a picture of resilience, transformation, and select challenges. While premium segments thrive and global interest continues to grow, affordability pressures and evolving buyer preferences are reshaping traditional demand models.
For homebuyers, investors, and industry stakeholders alike, understanding these nuanced trends is critical — not just to navigate the current cycle but to harness opportunities for growth in the years ahead.
