As India steps into 2026, the real estate sector is entering a phase of steady, broad-based growth. According to Cushman & Wakefield’s India Outlook 2026 report, resilience across asset classes, improving demand fundamentals and supportive policy measures are shaping a positive year ahead.
From offices and homes to retail centres, logistics parks and data centres, the market is witnessing structural shifts that point to long-term confidence rather than short-term spikes.
Offices: Demand Remains Firm
The commercial office market is expected to sustain its momentum in 2026. Net absorption is projected to hover around 55 million square feet, driven by continued hiring and expansion by global capability centres, IT firms and professional services companies.
Vacancy levels are tightening in key business districts, which is likely to support rental growth across major cities. With quality supply remaining in demand, office assets continue to attract both occupiers and investors.
Retail: Experience Takes Priority
India’s retail real estate story is increasingly about premiumisation and experiences. Around 5.9 million square feet of Grade A mall space is expected to be added in 2026, giving the sector fresh energy.
Leasing activity remains strong, led by fashion, food and beverage, and entertainment brands. Developers are also rethinking mall formats, focusing on experiential layouts that combine leisure, dining and flexible spaces to attract footfalls and longer stays.
Housing: Premium Homes in Focus
The residential market continues to evolve, with lifestyle upgrades driving buyer choices. Demand for luxury and high-end housing is growing, supported by rising incomes and higher participation from NRIs. New residential launches are expected to cross 300,000 units in 2026.
Home prices are likely to move up gradually, reflecting sustained demand and a clear preference for premium homes. Meanwhile, lower borrowing costs following RBI rate cuts in 2025 are expected to bring mid-segment buyers back into the market.
Logistics and Industrial: Steady Expansion
The logistics and industrial segment is adapting well to changing consumption and supply-chain patterns. For the fourth year in a row, leasing volumes are expected to cross 50 million square feet in 2026.
Demand from third-party logistics players, e-commerce firms and manufacturers remains strong. Rentals are projected to rise by 5–7 percent across major markets, supported by limited vacancies and policy initiatives such as the National Logistics Policy and multi-modal transport corridors.
Data Centres: Powering the Digital Economy
Data centres are emerging as a critical pillar of India’s real estate ecosystem. Installed colocation capacity is expected to reach 1.7 GW by the end of 2026, driven by demand for AI-ready and energy-efficient facilities.
Policy support through the Digital Personal Data Protection Act and the proposed National Data Center Policy is likely to boost investments further. Tier 2 cities are also gaining traction as edge data centres expand to improve connectivity and reduce latency.
Institutional Investments: Confidence Holds Firm
Investor sentiment remains positive. Institutional investments crossed USD 7.5 billion in 2025, marking an all-time high, and this momentum is expected to continue into 2026.
REITs are playing a growing role, with new listings and capital expenditure plans improving liquidity and returns. Investors are also diversifying across asset classes, including offices, residential projects, logistics, retail and data centres.
A Year of Measured Growth
India Outlook 2026 paints a picture of a real estate sector that is maturing steadily. With demand-led growth, policy backing and diversified investments, the market appears well-positioned for a balanced and sustainable year ahead.
