Housing in 2026: India's real estate segment to see disciplined growth, says report

India’s housing market is set for a strong year ahead, gathering momentum from 2025. As the sector enters calendar year 2026, the sector is supported by strong foundation rather than a post-pandemic high, after 2025 marked a shift towards more measured and disciplined growth.

Acoording to a recent report by PropTiger Residential Insights, the upcoming year will be driven by supply additions, a timing-sensitive demand, and broader divergence across cities. Market trends will likely be shaped by local economic and regulatory factors, moving away from the broad, nationwide patterns.

2025 real estate patternTowards the end of 2025, Mumbai Metropolitan Region saw the strongest pickup in the final quarter, with sales touching 25,617 units, though this was still 16.6% below the high recorded earlier in the year.

The sector also seen revival in Bengaluru, closing the year with 13,931 units sold, an 18% jump compared with the beginning of 2025. Hyderabad, however, continued to hold its ground, clocking sales of 14,453 units and maintaining its reputation as a market driven largely by end-users rather than investors.

The momentum remained far muted elsewhere.

Pune saw less than 1% growth quarter-on-quarter, while the NCR remained in a consolidation phase, posting a year-on-year decline of about 6%. Hyderabad also showed growth signs, selling 14,453 units.

What's next in 2026?
Looking ahead, demand in 2026 is expected to stay strong but cautious. The report highlighted stable macroeconomic conditions and clearer visibility on interest rates as key supports, that will back the segent. At the same time, buyers are also becoming more discerning, with choices guided by “price-value alignment, project execution quality, and micro-market fundamentals rather than speculative momentum”.

Cities in the south, which showed relatively low volatility last year, are likely to carry forward stronger momentum. NCR and some western markets, on the other hand, may need more time before they return to a phase of sustained growth.

Developers are also expected to stay cautious. Political and administrative considerations are also set to influence supply, particularly in Chennai and Kolkata, where upcoming state elections could lead to an “intentional moderation of new launches in early 2026”.

What about prices?
Going ahead in the year, prices are expected to remain firm across most major cities, backed by cost pressures and little appetite for heavy discounting. Any increases, however, are likely to be moderate and uneven.

The report notes that premium and upper mid-income segments could face pockets of resistance, prompting developers to lean more on “targeted incentives, flexible payment plans, and phased offerings rather than headline price corrections to drive absorption”.