Discover the Future of Indian Real Estate with Our Latest Report
As we step into 2026, the Indian real estate market stands at the cusp of transformative growth, driven by resilience, innovation, and opportunity. Our India Outlook 2026 report delves deep into the trends, challenges, and opportunities shaping the the sector during the next one year. From commercial office spaces to residential developments, retail hubs to logistics & industrial, and data centers to institutional investments, this report offers a 360-degree view of what lies ahead.
Key Highlights from the Report
1. Commercial Office : Sustained Momentum
- Demand Surge: Office leasing activity is projected to remain robust, with net absorption levels expected to record near-about 55 MSF .
- Rising Rents: Tight vacancies and strong demand are set to keep rental growth on an upward trajectory.
2. Retail Revolution: Premiumization Takes Center Stage
- New Supply Boom: With 5.9 MSF of Grade A new mall space expected in 2026, the retail sector will receive a fresh lease of life.
- Leasing Momentum: Fashion, F&B, and entertainment will continue to dominate leasing activity, supported by global brand rollouts and platform partnerships.
- Experience-Driven Formats: Developers are shifting towards experience-led mall designs, integrating leisure, F&B, and flexible spaces.
3. Residential Market: Lifestyle Upgrades Drive Growth
- Luxury and High-End Housing: Rising incomes and increased NRI participation are fueling demand for premium homes, with new launches expected to exceed 300,000 units.
- Price Growth: Weighted average residential prices are expected to witness a gradual upward movement in 2026, driven by strong demand and consumer preferences strongly favouring premium homes.
- Lower borrowing rates appeal to mid-segment homebuyers: With more than 100 bps rate cut delivered by the RBI in 2025, year 2026 will see the mid-segment homebuyers back in action.
4. Logistics & Industrial: Adapting to A New Normal growth
- Leasing Volumes: For the fourth consecutive year, leasing activity is set to exceed 50 MSF in 2026, driven by 3PL, e-commerce, and manufacturing demand.
- Rental Growth: Rentals are expected to rise by 5–7% across major markets, reflecting strengthening demand and tight vacancies.
- Policy Support: Initiatives like the National Logistics Policy and multi-modal transport corridors are enhancing efficiency and cost competitiveness
5. Data Centers: The Digital Backbone
- Capacity Expansion: Installed colocation capacity is expected to reach 1.7 GW by the end of 2026, supported by robust demand for AI-ready and sustainable data centers.
- Policy Boost: The Digital Personal Data Protection Act and the draft National Data Center Policy are set to drive growth and investment in this sector.
- Edge Data Centers: Investments in Tier 2 cities are gaining momentum, ensuring better customer experiences and lower latency.
6. Institutional Investments: Scaling New Heights
- Positive Investor Sentiment to prevail: Year 2025 witnessed institutional investments surpass USD 7.5 billion – all time high – and a benign investor sentiment is likely to prevail given the favorable demand-supply equation.
- REIT Expansion: Indian REITs continue to outperform, with new listings and CAPEX pipelines set to drive growth and liquidity.
- Asset Diversification to continue: Investors will continue to explore opportunities across sectors, i.e. office, residential, logistics & industrial, data centers, and retail.