Residential sales across India’s top seven cities rose 8% year-on-year to 70,631 units in Q1 2026, while homes priced at Rs 1 crore and above accounted for 71% of total sales, up from 59% a year earlier, according to JLL.
Arjun Gehlot, Director, Ambience Group, said homebuyers increasingly view residential purchases as long-term lifestyle decisions. He noted that space, planning, location and the quality of the surrounding environment are becoming more important in purchase decisions. The willingness to allocate higher budgets is also evident in sustained demand for luxury housing, particularly in established urban markets where buyers already understand the value of the location.
Commercial real estate is recording significant expansion of its own. CBRE recorded 45.5 million sq ft of office absorption in H1 2026, the highest half-year figure on record, with Global Capability Centres (GCCs) accounting for about 43% of leasing.
Sandeep Chhillar, Founder and Chairman, Landmark Group, said India’s commercial and residential property markets are no longer developing independently but are reinforcing each other. He said GCCs alone are projected to grow by 41% by 2030, driving demand for Grade-A offices that offer more than strategic locations. Occupiers are increasingly assessing connectivity, floor plate flexibility, sustainability credentials and the broader business ecosystem surrounding a building.
Chhillar identified Gurugram as an example of this convergence, where a maturing corporate infrastructure has simultaneously strengthened residential absorption in premium micro-markets. He described the current growth phase as a structural reset rather than a cyclical uptick, adding that developers who build for these changing conditions instead of relying on the previous cycle will shape the Indian real estate market over the next decade.
The changing composition of residential demand is also influencing developers’ launch strategies. JLL recorded a 45% year-on-year increase in launches priced above Rs 1 crore in Q1 2026, while launches in the Rs 1.5-3 crore segment rose 134%.
B.K. Malagi, Vice Chairman, Experion Developers, said India’s residential market is now firmly driven by end-users, who remain conscious of the long-term value of their investments. According to him, location, rental potential, construction quality and the future growth of a micro-market are increasingly shaping purchase decisions.
Malagi added that rising property prices are prompting buyers to place greater emphasis on execution, delivery and developer credibility. This is creating a more discerning market in which quality and trust are becoming key differentiators for residential developments.
Prateek Tiwari, Managing Director, Prateek Group, said buyers have developed a clearer understanding of what constitutes value in a home. Beyond the apartment itself, they are considering the neighbourhood, accessibility, open spaces and everyday convenience. This is supporting demand for strategically located residential projects in established markets, where buyers assess both immediate usability and the location’s longer-term potential.
Dr. Gautam Kanodia, Founder, KREEVA and Kanodia Group, said luxury housing is becoming increasingly associated with the overall living experience. Buyers are seeking privacy, design, wellness and better common spaces, alongside locations that retain their relevance over time. He said this is changing the definition of luxury, with homes increasingly viewed as part of a broader lifestyle rather than simply as physical assets.
Ashwinder R. Singh, Vice Chairman, BCD Group and Chairman, CII Committee on Real Estate (NR), said India’s real estate growth is no longer being driven by residential or commercial property in isolation. He explained that employment generates office demand, offices create economic clusters, and those clusters generate housing demand, while infrastructure expands the geography of growth.
Singh said this entire cycle is increasingly reinforcing itself, with end-users, businesses and institutional capital participating simultaneously. He described this interconnected pattern as the factor that distinguishes the current phase from earlier real estate cycles.
Karan Khanna, Founder, Apex Acreages, said luxury and premium residential projects are gaining traction alongside continued activity across the expanding housing segment. He noted that CBRE recorded over 61,000 residential sales in Q2 2026, accompanied by a rising share of high-end apartment sales.
Khanna said observations from the market indicate that location, product quality, amenities and long-term value are increasingly influencing purchasing decisions. These considerations are also shaping how developers position their projects and how investors evaluate opportunities across markets.
The developments across residential and commercial real estate point to a market in which buyers and occupiers are taking a more considered approach to property decisions. With premium housing demand increasing, office absorption reaching a record half-year level and economic clusters strengthening residential markets, location value, quality, connectivity and long-term relevance are becoming central considerations in how India's real estate sector evolves over the next decade.
About The Author
Comment List