- Real estate market shifts towards premium, infrastructure-driven growth.
India’s real estate market is undergoing a sharp transformation. Luxury housing is no longer a niche segment reserved for ultra-rich buyers. It is rapidly becoming the centre of gravity for the country’s residential market, even as geopolitical tensions in the Middle East temporarily slow NRI investment activity.
The latest Q1 2026 report by ANAROCK reveals that homes priced above Rs 1.5 crore now account for 53 per cent of all new launches across India’s top seven cities, highlighting a decisive shift towards premium and experience-driven housing.
At the same time, housing sales across major cities dipped 7 per cent quarter-on-quarter, with uncertainty linked to the ongoing West Asia conflict causing many overseas Indian buyers to adopt a wait-and-watch approach. Yet the broader picture remains resilient. Sales were still 9 per cent higher year-on-year, while new launches jumped 26 per cent annually, indicating developers remain confident about long-term demand.
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Premiumisation Is Reshaping India’s Real Estate Story
The report suggests India’s residential market is moving away from speculative buying cycles and towards long-term value creation driven by infrastructure, lifestyle upgrades, and end-user demand.
Mohit Goel, Managing Director of Omaxe Ltd., said premium housing demand has remained remarkably steady despite short-term geopolitical caution.
“Global uncertainty is pushing NRIs to invest in markets that offer stability and long-term value, and India continues to stand out on both counts,” Goel said.
He pointed to the report’s finding that homes above Rs 1.5 crore now dominate launches across top cities, calling it a reflection of “sustained buyer confidence”.
Goel also said India’s infrastructure boom is redrawing the country’s real estate map beyond metros.
“New expressways, airports, metro networks, and industrial corridors are opening up fresh opportunities,” he said, adding that cities such as Lucknow, New Chandigarh, Ludhiana, Indore, Faridabad, and Prayagraj are witnessing stronger demand because of improving connectivity and growing economic activity.
Buyers Now Want Lifestyle, Ecosystem And Long-Term Value
Industry leaders say today’s homebuyers are looking beyond ownership and evaluating the complete living experience around a project.
Amrita Gupta, Director at Manglam Group and CEO of Manglam Spa & Resorts Pvt. Ltd., said the market is entering a “more calibrated phase”.
“Growth is increasingly being driven by infrastructure, end-user demand and long-term value creation rather than speculative momentum,” Gupta said. She added that buyers are now prioritising “quality-driven, experience-led housing” and are evaluating not just the property, but “the overall ecosystem and livability it offers”.
According to Gupta, Tier 2 markets such as Jaipur are emerging as strong growth centres because of rising lifestyle aspirations and improving urban infrastructure.
The ANAROCK report also identified senior living and co-living as fast-growing trends, signalling how demographic shifts and changing work cultures are beginning to influence housing demand.
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NRI Investors Pause, But Confidence In India Holds Strong
Despite a temporary slowdown in overseas investment sentiment, developers and wealth advisors believe India remains one of the world’s most attractive real estate destinations for NRIs. Binitha Dalal, Founder and Managing Partner at Mt. K Kapital, said geopolitical volatility is encouraging NRIs to move investments closer home. “India is emerging as one of the most stable and promising real estate markets globally,” she said.
Dalal added that Indian real estate currently offers NRIs “a compelling mix of long-term wealth creation, stability, and emotional value”.
Dhruv Sarkar, Chief of Business Operations at Bhaarat Wealth Group, said investor behaviour is also evolving rapidly.
“What stands out in recent trends is the strong shift towards premium housing, luxury developments, and strategic land investments,” Sarkar said.
He noted that NRIs are increasingly focusing on infrastructure-led growth corridors and land parcels with long-term appreciation potential.
‘This Is Not A Market Losing Its Nerve’
Suvrat Jain, Co-Founder and CEO of Onward Workspaces, argued that the current moderation in sales should not be mistaken for weakening confidence.
“Honestly, these are not the numbers of a market losing its nerve,” Jain said, pointing to the 9 per cent annual rise in housing sales, 26 per cent surge in launches, and 15 per cent annual price appreciation in NCR. He added that multinational firms continue expanding aggressively in India despite global instability.
“Fortune 500 companies like Accenture, DP World, and Teleperformance aren’t waiting for geopolitical calm to make their India real estate decisions. They’re already here, already expanding,” Jain said.
The emerging picture, therefore, is not of a housing market under pressure, but one in transition. India’s residential sector is becoming more premium, more infrastructure-driven, and increasingly aligned with long-term wealth creation rather than short-term speculative demand.
