Residential Sales in India's Top Cities Forecast at 3.55 Lakh Units by 2026
Residential Sales in India's Top Cities Forecast at 3.55 Lakh Units by 2026
IN · Published Aug 20, 2026
According to a report by CareEdge Ratings, India's real estate sector is projected to remain resilient despite the ongoing West Asia crisis. Residential unit sales in the top six cities are forecast to reach approximately 3.55 lakh units by the end of
The sector has shown strong performance, with sustained demand, deleveraged developer balance sheets, and robust institutional participation contributing to its growth. Commercial real estate, particularly office leasing and industrial warehousing, continues to thrive due to structural demand and expansion in Global Capability Centres (GCCs). However, the report highlights that affordable housing and project execution are facing cost pressures due to rising crude oil prices, which have increased fuel, freight, and input costs.

Impact & Risks

The resilience of the real estate sector is expected to benefit large, organized developers, while smaller, highly leveraged developers may face challenges. The rise in crude oil prices, which peaked at $117 per barrel, could lead to a 2-3% increase in construction costs, potentially compressing profit margins for projects in their early stages. Affordable housing projects are particularly vulnerable to these cost pressures, which could limit their growth. However, premium housing and commercial real estate are expected to remain stable, supported by high demand and strong leasing activity.

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