India’s residential property market is heading into 2026 with strong price expectations, as nearly seven in ten developers anticipate housing values to rise by more than five per cent over the coming year. The outlook, drawn from a recent sentiment survey conducted by a national developers’ association in partnership with a real estate analytics firm, reflects confidence rooted in steady end-user demand rather than speculative momentum.
The survey, conducted towards the end of the year and drawing responses from more than 600 developers across major urban markets, suggests a broad-based optimism about residential real estate performance. Around 68 per cent of participants expect prices to increase beyond the five per cent mark during the 2026 calendar year, while a smaller segment anticipates double-digit appreciation. Only a minority foresee price stagnation or decline, indicating limited downside risk in most markets. Industry observers say the expectations reflect structural shifts in India’s housing market. “Demand today is driven by genuine occupancy needs, supported by stable income growth and changing household preferences,” said an industry expert familiar with the findings. Larger homes, better amenities, and improved connectivity are increasingly shaping buyer decisions, particularly in metropolitan regions and fast-growing peripheral corridors. The survey highlights that close to half of respondents expect prices to rise between five and ten per cent, while nearly one-fifth foresee growth of ten to fifteen per cent. A very small fraction anticipate sharper increases above twenty-five per cent, underscoring that most developers expect measured, sustainable appreciation rather than a speculative spike.
Beyond pricing, sentiment around demand remains positive. Nearly two-thirds of developers expect residential demand to grow by more than five per cent in 2026. Analysts attribute this to a combination of improving urban infrastructure, sustained employment generation in services and manufacturing, and a maturing buyer base that values long-term livability over short-term gains. Developers are also signalling a more disciplined approach to new supply. According to industry voices, the sector is increasingly cautious about project launches, focusing on execution certainty, cost efficiency, and regulatory compliance. Technology adoption, tighter construction management, and data-driven market assessments are becoming central to project planning, helping developers manage rising input costs while aligning products with buyer expectations. However, industry leaders caution that sustained momentum will depend on systemic reforms. Faster approval processes and clearer regulatory pathways remain critical concerns. “Streamlined clearances can unlock timely housing supply and support more balanced urban growth,” an industry representative noted, adding that delays continue to affect delivery timelines and project viability in several cities.
From an urban development perspective, the outlook suggests a phase of consolidation rather than excess. Moderate price growth anchored in real demand can support healthier cities, encourage efficient land use, and reduce volatility. As India’s housing market moves into 2026, the emphasis appears to be shifting towards stability, long-term value creation, and more inclusive urban expansion.
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