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India's Housing Boom: Demand Surge & Price Hikes Expected
20 Dec
Summary
- Developers anticipate over 5% demand growth and 10% price rise in 2026.
- Majority of developers expect unsold inventory to clear within two years.
- Mid- to large-sized apartments, especially 3 BHKs, are prioritized for launches.
Indian real estate developers are projecting a robust market in 2026, with expectations of substantial demand growth and price appreciation. A significant majority of developers foresee demand increasing by over 5% and prices by 10% in the coming year. This optimism is further supported by plans for new project launches, with 42% of developers intending to introduce over 1 million square feet of new inventory, particularly in the National Capital Region (NCR).
Confidence in sales velocity is high, as 83% of developers expect their current unsold inventory to be completely sold out within the next two years. This strong outlook is primarily attributed to sustained end-user demand, which 75% of respondents identified as the key market driver. Developers are also focusing on mid- to large-sized apartments, with a clear preference for 3 BHK configurations, followed by 4 BHK and 2 BHK units.
Moderating cost pressures are also contributing to the positive sentiment. Around 65% of surveyed developers reported that project cost increases have stayed below 10%, thanks to GST rationalization and the adoption of advanced construction technologies. Faster regulatory approvals and greater clarity are deemed crucial by industry leaders to sustain this momentum and ensure balanced urban growth.
