India's real estate sector resilient in 2025, outlook remains steady for 2026: Report

New Delhi [India], December 15 (ANI): India's real estate sector continues to be on the upswing throughout 2025, supported by strong economic growth, steady consumption, government policies and firm investor confidence, according to a Colliers report. The study shows that even though global trade issues slowed supply chains, easing inflation, better credit flow and lower lending rates kept buyers active across real estate categories.
The report notes that the office, housing, and industrial segments recorded sustained demand throughout the year. Companies from the technology, banking, financial services, engineering and flex space sectors continued to take up office space across major cities. This steady activity helped maintain confidence in commercial markets.
Housing sales also remained firm, as rising incomes, improved affordability, and better connectivity encouraged homebuyers to upgrade. Demand in warehousing remained strong too, driven by logistics improvement and the needs of sectors such as e-commerce, engineering and automobiles. Institutional investors increased their interest in mixed-use assets and emerging categories such as data centres, senior living, and co-living, driven by demographic and digital shifts. The report says these trends helped Tier II and III cities gain more attention and created a broader base for future growth.
Looking ahead to 2026, Colliers expects the sector to maintain momentum, with both commercial and residential demand remaining healthy. Steady occupier interest, growing homeownership and improved infrastructure are set to guide the next phase.
Industrial, warehousing and alternative assets are likely to benefit further from expanding manufacturing and modernising supply chains. Investor participation is expected to remain strong, driven by REITs, SM REITs, InvITs, and AIFs, which make real estate investing more accessible. The report adds that ESG-linked decisions and technology-led buildings will shape long-term strategies.
On the office front, the report highlights that India crossed 50 million sq ft of leasing in the first nine months of 2025, driven mainly by Global Capability Centres (GCCs). By the end of the year, Grade A demand is expected to reach nearly 70 million sq ft.
In 2026, demand is likely to settle around 70-75 million sq ft as occupiers increasingly seek high-quality, tech-enabled and sustainable spaces. GCCs are expected to expand further, while flex workspaces may account for about one-fifth of Grade A leasing. The report highlights a shift toward workplace designs that use AI, IoT, and automated systems to improve efficiency and reduce costs. Sustainability will also move to the centre, with most new supply expected to be green certified.
In housing, sales in 2025 remain steady, supported by improved affordability and infrastructure improvements across major cities. Colliers expects this momentum to continue in 2026, as urbanisation and rising lifestyle needs drive demand for premium homes, plotted developments, and gated communities.
Tier II and III cities are set to see more activity as developers expand into new markets. The report also notes emerging interest in redevelopment, driven by supportive urban policies, and growing adoption of fractional ownership models in premium housing. (ANI)