India real estate demand remains stable in Q1 despite launch slowdown: Equirus

The report highlighted that total leasing in the commercial segment rose 6 per cent year-on-year to 29.9 million square feet in Q1 2026, compared to 28.2 million square feet in the same period last year.

At the same time, new launches saw a sharp increase, rising to 14 million square feet from 5.5 million square feet a year ago, marking a 154 per cent jump, the report noted.

Pointing to the growing role of global firms, the report said, "GCC share in leasing" increased to 48 per cent in Q1 2026 from 44 per cent in Q1 2025, indicating sustained demand from global capability centres.

On a quarterly basis, the report observed strong regional trends, noting that "highest Q-o-Q increase in leasing transactions" was recorded in Kolkata, while "highest Q-o-Q increase in launches" was seen in NCR.

In terms of pricing, NCR and Kolkata recorded the highest increase at 15 per cent over the past 12 months, while Ahmedabad saw the lowest price growth at 2 per cent, reflecting varied market dynamics across cities.

The report also pointed to a shift in the residential segment, driven by younger buyers. "Nearly 74 per cent of property buyers today are below the age of 35," it said, highlighting a departure from earlier trends where homeownership was typically seen later in life.

Developers are adapting to this shift, with the report noting that "the growing participation of younger buyers is influencing everything from project design and apartment sizes to marketing strategies and payment plans."

On the supply side, housing activity also remained strong. "Housing supply rises 10 per cent Y-o-Y," the report noted, while adding that "prices up 14 per cent across major cities in Q1 2026."

However, the report flagged some moderation in demand on a sequential basis, stating that "demand showed signs of moderation... declining 2.2 per cent quarter-on-quarter," even as "on an annual basis, demand remained stable with a 1.5 per cent increase."

Overall, the report suggests that while demand remains resilient, the sector is witnessing evolving trends in buyer behaviour and regional performance, even as supply continues to expand. (ANI)