India’s residential real estate market posted resilient growth in the first quarter of FY26, supported by robust demand across mid-premium and luxury segments, according to a note by HSIE Research. Developers such as Prestige Estates, DLF, and Sobha reported record-high quarterly presales, aided by a rebound in launches and steady buyer sentiment.
While FY25 witnessed some moderation due to a high base, delayed approvals and slower conversion of expressions of interest (EOI) to sales, Q1FY26 points to renewed momentum. Developers are shifting focus from chasing volumes to strategic launches aimed at margin protection and operational efficiency. Well-capitalised players like Prestige, Oberoi, and Sobha are expected to benefit from deferred launches and pent-up demand in core metros, setting the stage for a strong year ahead.
Prestige Estates reported its highest-ever quarterly presales at INR 121.3 billion, up 74% quarter-on-quarter and 299% year-on-year, driven by premium launches in NCR and Mumbai that saw 80% absorption rates. Collections also touched an all-time high at INR 45.2 billion, reflecting robust execution and sustained demand. Sobha reported record Q1FY26 presales of INR 20.7 billion, led by launches such as Sobha Aurum and Marina One, which contributed nearly half of its sales.
Key markets including Bengaluru, MMR and Pune are expected to outperform NCR in the near term, supported by recent interest rate cuts and sustained urban demand. Despite the NCR market being overheated, DLF’s Privana West project, which saw sales worth INR 110 billion, demonstrates continued appetite for quality offerings in prime locations.
Meanwhile, the commercial segment is seeing healthy traction. Office leasing activity improved in Q1FY26, with gross absorption rising and vacancies falling. Prime business districts in Bengaluru, Pune, and Hyderabad recorded 5–7% year-on-year rental growth, buoyed by demand from global capability centres, BFSI firms and flex-space operators.
Organised retail remains resilient with over 90% occupancy in Tier 1 cities, although overall growth has slowed as spending shifts towards travel and inflation weighs on the mid-income segment. Developers with ESG-compliant assets and large annuity portfolios are well-placed to capitalise on structural consumption-led recovery over the medium to long term.
