India’s Residential Real Estate Poised for Sustained Growth in 2026: Colliers Report

India's residential real estate market continued to grow in an upward trajectory throughout 2025. This was due to strong economic fundamentals, improved market affordability, and growing buyer confidence. As per the "India Real Estate 2026" Report by Colliers, housing demand has remained persistent despite external pressures. It sets the stage for growth and sustained transformation in the coming years.

Housing Sales So Far: A Resilient Performance

The top eight Indian cities have remained firm through 2025 in terms of housing sales, staying at par with 2025 levels. This steady performance gives a glimpse into the coming year of how stable and reliable the market is going to be. Colliers credits this resilience to a combination of increasing household incomes, easing inflation, and improved access to credit.

Another critical driver of this stable growth is connectivity-focused infrastructure. Large-scale investments in metro rail networks, expressways, transit corridors, and airports were witnessed this year, particularly in the peripheral and suburban areas of Tier I cities. These quiet locations have emerged as key determinants for housing sales, as they kept affordable options available while being connected with the main employment and lifestyle hubs. "Peripheral and suburban markets in Tier I cities to drive housing sales, aided by major infrastructure upgrades," as mentioned in the report. As a result of developments in these micro-markets of Bengaluru, Hyderabad, Pune, and Delhi NCR, there is a sustained absorption.

There is also a significant change in the demand of buyers, plotted developments, gated communities, villas, and premium housing have shown a strong pull. It is indicated that it could be due to the post-pandemic need for more open and larger homes with amenities that align with lifestyle needs. Investor interest is increasing gradually, as well, in selected segments, which is supported by the expectation of capital appreciation and rental returns.

Trends That Homebuyers Should Look Out For

Moving forward, Colliers expects the residential sector to capitalise on three main growth opportunities: urbanisation, premiumisation, and sustainability. These themes are reshaping both buyer preferences and developer strategies.

• Sustainability-Led Housing: Homebuyers are increasingly prioritising wellness, smart living, and sustainable homes. This adaptation of green homes is backed by a growing consumer awareness and government incentives for buyers and developers, which signals a growth of such projects. Energy-efficient designs, water and electricity conservation systems, and technology-enabled home automation are becoming key drivers in these mid-to-premium segments.

• Redevelopment Reshaping Urban Cores: Redevelopment projects are gaining momentum across major Tier I cities, which is aided by Floor Space Index (FSI) norms, transferable development rights (TDR) frameworks, and updated planning policies in the areas. These projects are opening new value opportunities in land-scarce urban hubs. This upgrades housing quality and reshapes the lifestyles of certain segments, which is a traction to new-age modern homebuyers.

• Expansion into Tier II and Tier III Cities: Developers are now making their way to Tier II and Tier III cities, which are reinforced with improved infrastructure, urbanisation, and increasing aspirational demand in these areas. This supports long-term residential growth in these markets. Colliers' report notes that the developers will expand with premium projects in the areas by 10 to 15 per cent annually.

• Fractional Ownership and Co-Ownership Models: Ownership is made easier and accessible for people with options like fractional ownership and co-ownership structures that allow investors to enter at a lower price as compared to the market prices, while offering the same perks and benefits. A vast adaptation of these models will significantly shape the residential real estate momentum in India.

Overall, Colliers' report suggests that India's residential market is about to enter a more mature and diversified growth period. While housing sales have been stable throughout 2025, the sector is evolving beyond volume-driven sales, and towards a more conscious ownership in quality, sustainability, and lifestyle-focused development.