Premium housing demand, urbanisation to support India's realty market in H2 2026: Knight Frank

Mumbai [Maharashtra], July 9 (ANI): India’s residential real estate market is expected to remain resilient through the second half of 2026 despite moderating sales growth, with strong demand for premium housing, urbanisation and infrastructure-led development expected to support the sector as it enters a phase of consolidation, according to Knight Frank India.

“India’s housing market continues to reflect the stability of its strong fundamentals, with H1 2026 delivering one of the strongest half-year sales performances of the past decade. While growth has reduced following a steep recovery from pandemic lows, the market’s underlying fundamentals remain firmly intact,” said Shishir Baijal, International Partner, Chairman and Managing Director, Knight Frank India.

The report said the market is entering H2 2026 in a phase of consolidation rather than correction. It expects ongoing urbanisation, stable employment, lower home loan rates following cumulative monetary easing, and stronger developer balance sheets to continue supporting housing demand. However, it cautioned that sales have plateaued, new launches are outpacing absorption, unsold inventory is gradually rising and price growth is becoming increasingly concentrated in premium and luxury housing.

Knight Frank report said developers may increasingly rely on demand-side incentives such as flexible payment plans, subvention schemes and stamp duty waivers if launches continue to exceed sales during the remainder of the year. Even so, it said RERA-led reforms, better capital discipline and the growing presence of well-capitalised developers are expected to keep the market stable, making a sharp correction unlikely.

The outlook follows a strong first half of 2026, when residential sales across eight major cities stood at 171,471 units, while developers launched 187,350 units. Homes priced above Rs 1 crore accounted for 54 per cent of total sales, up from 49 per cent a year earlier, reflecting a continued shift towards premium housing.

Knight Frank said stable economic fundamentals, infrastructure investment and evolving buyer preferences continue to support the sector, although the market is becoming more selective as affordable housing supply remains constrained and buyers increasingly prioritise quality, location and long-term value. The consultancy said the balance between demand recovery, inventory levels and pricing discipline will determine how the residential market performs through the rest of 2026. (ANI)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)