Property demand to rise with $4.5 billion investment in cities including Delhi-NCR

India's real estate market is moving in a very positive direction towards the end of 2026. The entire sector is gaining strength due to robust demand for residential properties, an increase in the leasing of commercial office spaces, and a boom in institutional investments. It is expected that the launching of new projects and the home sales process will gain further momentum, especially during the festive season.

According to information provided by Aaj Tak, a report by Savills India states that private equity investment in the Indian real estate sector stood at $4.5 billion during the period from January to September 2026. This figure is 16 per cent higher compared to the same period last year. Investors are no longer limiting themselves to residential and office properties but are also showing interest in various sectors such as industrial and logistics, hospitality, and data centres. In particular, there has been a significant increase in the demand for warehouses and industrial properties due to the growth in manufacturing, e-commerce, and supply chain-related activities.

Regarding the leasing of office space, according to the Savills India report, total office leasing in 6 major cities of the country reached 60.7 million square feet in the first nine months of 2026, which is 6 per cent higher than the same period last year. The primary reasons for this demand are the increasing activities of Global Capability Centres (GCC), technology companies, and firms in the financial services sector. GCCs accounted for 30 per cent of the total office leasing so far in 2026, indicating that India is emerging as an important business and technical hub for global companies. Demand for office space continues to be sustained in Delhi-NCR, Bengaluru, and Hyderabad due to strong business structures and improving connectivity.

Arvind Nandan, Managing Director of Research and Consulting at Savills India, states that the strength in residential demand, the continuous demand for office space, and the increase in institutional investment are leading the Indian real estate market to a strong position at the end of 2026.

In the residential sector, higher demand for premium and luxury homes is being observed in cities such as Delhi-NCR, Mumbai Metropolitan Region, Bengaluru, and Hyderabad. Keeping the festive season in mind, developers are introducing special offers, easy payment plans, and new projects to attract customers. According to Yashank Vasana, Managing Director of Royal Green Realty, the festive season plays a crucial role in the confidence and decision-making process of home buyers. He further added that there are many possibilities in emerging Tier-2 markets such as Sonipat, Bahadurgarh, and Rohtak, and people are now taking more interest in plotted developments, as buyers are prioritising land ownership, construction according to their own needs, and the possibility of higher value in the future.

According to Rupam Dey, Head of Marketing Communication and Brand at Hubtown Limited, the outlook for the real estate market has remained positive due to home buyer demand, commercial leasing, and institutional investment.

However, despite all this growth, the real estate sector also faces some challenges. Rising home prices, limitations in the purchasing power of the general public, and the increase in construction costs have become the main concerns for this sector.