India Real Estate Market Stays Strong in 2025, Set for Accelerated Growth in 2026: Colliers Report
India’s real estate market demonstrated remarkable resilience in 2025 and is positioned for sustained, stable growth in 2026, supported by strong economic fundamentals, policy continuity, and consistent end-user demand. According to a Colliers report, the sector remained steady despite global uncertainties, reflecting growing confidence among homebuyers, occupiers, and long-term investors.
Favourable macroeconomic conditions, including lower inflation, improved access to home loans, and softer interest rates, played a critical role in maintaining buyer momentum across residential, commercial, and industrial real estate segments. These factors helped insulate the market from global supply chain disruptions while ensuring liquidity and affordability remained intact.
Read More
Office real estate continued to be a key growth driver, with India crossing 50 million sq ft of office leasing during the first nine months of 2025. Demand was led by technology firms, BFSI, engineering companies, and flexible workspace operators, with Global Capability Centres emerging as the largest contributors. Grade A office demand is expected to reach nearly 70 million sq ft by the end of 2025 and rise further to 70–75 million sq ft in 2026, as occupiers prioritise tech-enabled, sustainable, and green-certified buildings.
The residential segment also maintained strong traction, supported by rising income levels, improved urban infrastructure, and enhanced connectivity. Demand is increasingly shifting toward premium housing, plotted developments, and gated communities, while developers expand their footprint in Tier II and Tier III cities. Redevelopment projects and fractional ownership models are gaining popularity, offering both affordability and investment flexibility.
Industrial and warehousing real estate remained robust, driven by e-commerce, logistics, manufacturing, automotive, and engineering sectors. Looking ahead to 2026, investor focus is expected to intensify on mixed-use developments and emerging asset classes such as data centres, senior living, and co-living. Capital inflows through REITs, SM REITs, InvITs, and AIFs, combined with technology-led and sustainable design practices, will further strengthen India’s real estate growth trajectory.
