India's residential real estate market is expected to see healthy housing demand during the 2026 festive season, even as sales growth is expected to moderate from the sharp expansion seen in previous years. According to Knight Frank India, the 2026 festive season is expected to see country-level residential sales higher compared with the 2025 festive period, though the pace of growth is likely to moderate compared with previous festive years. Anarock Group expects housing sales in the top seven cities during Q3 2026 to be around 3-4% higher than the previous quarter, with the cities recording approximately 90,700 units of sales in Q2 2026. However, on a year-on-year basis, sales could remain broadly flat, compared with around 97,000 units sold in Q3 2025, as per Anarock Group vice-chairman Santhosh Kumar.
The preference of residential property buyers has reached a multi-year high for investing in new project launches, with 34% of respondents in H1 2026 preferring new launches according to the latest Anarock Homebuyer Sentiment Survey. This represents a significant shift from 30:25 ratio of ready homes to new launches in H1 2022 to 18:34 in H1 2026. Residential launches across the top eight cities rose 4% year-on-year in the first half of 2026, indicating continued developer activity, as reported by Knight Frank India. Launch activity is likely to remain stronger, with nearly 97,000 units launched across the top seven cities during July-December 2025, and Anarock expects launches in Q3 2026 to be up to 10% higher year-on-year, with a strong pipeline also expected in Q4.
3BHKs (three-bedroom, hall, and kitchen) account for 48% of overall preferences among 8,200 respondents across 14 cities, according to the Anarock report. 2BHKs remain the second-most preferred configuration at 38%, while 4BHKs and 5BHKs together account for 14% of preferences. Among cities, Ahmedabad recorded the highest preference for 3BHK homes at 57%, followed by Chennai and Delhi-National Capital Region (NCR) at 53% each and Hyderabad at 52%. However, the Mumbai Metropolitan Region only showed a 38% preference for 3BHK housing units, the lowest among all surveyed cities. This preference shift reflects buyers increasingly prioritising space and larger configurations as they move higher up the price ladder. According to Vimal Nadar, National Director and Head of Research at Colliers India, about 62% of potential homebuyers across major Indian markets prefer 2 and 3 BHK apartment configurations, with larger and spacious units preferred more in cities like Delhi NCR, Bengaluru and Hyderabad, while Mumbai continues to demonstrate strong demand for compact and right-sized units.
The preference for housing units in the ₹90 lakh to ₹1.5 crore bracket rose to 34% in H1 2026, from 25% in H1 2021. Similarly, demand for homes priced above ₹1.5 crore almost doubled to 27% in H1 2026, from just 13% five years ago. As a knock-on effect, the preference for midsize housing priced between ₹45 lakh and ₹90 lakh fell to 21% in H1 2026, from as high as 35% in H1 2021. Similarly, preference for housing priced below ₹45 lakh declined from 27% in H1 2021 to 18% in H1 2026. According to the latest Colliers report, 46% of respondents prefer properties priced between ₹50 lakh and ₹1.5 crore, with around 50% of prospective homebuyers likely to purchase a house within two years. This is also mirrored in supply, with affordable housing's share of new launches across the top seven cities declining from 26% in H1 2021 to just 8% in H1 2026. The preference for new launches allows buyers significantly lower entry prices and options to select desired units, plus staggered payment plans tied to project achieving certain construction milestones.
More than 60% of potential homebuyers expressed clear preference for ready-to-move or near-completion properties, as compared to under-construction and newly launched projects, according to the latest Colliers report. Around 51% of respondents plan to purchase a house for self-use, underscoring the continued dominance of end-user demand, while 16% intend to purchase a second or vacation home, highlighting growing prominence of leisure and lifestyle-driven ownership. Rising property prices are altering buyer behaviour, with Anarock's consumer sentiment survey finding that 65% of respondents were at least moderately concerned about the rise in housing prices, while 40% viewed the increase as a long-term trend. However, 44% intended to proceed with their planned purchase, as per Anarock. Developers are responding with targeted payment schemes rather than widespread price cuts, with companies like Signature Global planning two large housing projects in Gurugram in H2 FY27, with a combined revenue potential of ₹10,000-12,000 crore, and Embassy Developments planning residential projects worth around ₹10,000 crore for the remainder of the year. Developers are becoming more calibrated in their launch strategies, while homebuyers are showing greater scrutiny around prices, payment terms and product quality, as noted by industry experts.
