The momentum strengthened in the third quarter. Grade A gross absorption reached 18.7 million sq ft in Q3 2026, rising 7% sequentially from 17.4 million sq ft in Q2 and 9% annually from 17.2 million sq ft in Q3 2025.

The numbers point to an office market that is not merely maintaining its pace but is seeing a shift in the composition of demand. Conventional office leasing has remained broadly stable, while flex-space operators have emerged as one of the fastest-growing sources of occupancy.

At the same time, developers have responded to the improving demand environment with a sharp increase in new supply. More than 19 million sq ft of Grade A office space was added during Q3 alone, taking nine-month supply to 41.7 million sq ft.

The result is a market where demand is strong, but supply is also accelerating.

KEY MARKET SNAPSHOT

54.4 MSF — Grade A gross leasing during Jan-Sep 2026
+7% YoY — Growth in nine-month leasing
18.7 MSF — Q3 2026 leasing
+7% QoQ / +9% YoY — Q3 leasing growth
41.7 MSF — New supply during Jan-Sep 2026
12.6 MSF — Flex-space leasing during Jan-Sep 2026
16% — Overall vacancy at the end of Q3 2026
+7% YoY — Average rentals across the top seven markets

Q3 Changes the Tone of the 2026 Office Market

The most important number in the Colliers data is arguably not the 54.4 million sq ft cumulative figure but the acceleration seen in Q3.

After a relatively cautious second quarter, leasing rose to 18.7 million sq ft in Q3. This was the highest third-quarter absorption recorded in recent years, according to Colliers.

This matters because Q2 had raised questions about whether external volatility could materially slow occupier expansion. The Q3 rebound suggests that companies continued to take office space despite the uncertain global economic environment.

Colliers Managing Director, Office Services, Arpit Mehrotra said the market could potentially see 75-80 million sq ft of transactions across the major office markets in 2026, provided the strong demand trajectory continues in the final quarter.

That is a projection rather than an achieved result, but it provides an indication of how the research firm views the current demand pipeline.

Bengaluru Remains the Largest Leasing Engine

Bengaluru continued to dominate India’s Grade A office market.

The city recorded 15.7 million sq ft of leasing during Jan-Sep 2026, accounting for approximately 29% of total leasing across the seven markets.

Hyderabad was the standout growth market, however. Its nine-month absorption reached 9.4 million sq ft, representing a 47% year-on-year increase.

Delhi NCR also recorded strong growth, while Pune remained positive on a nine-month basis.

City-wise office demand

The city numbers reveal an important feature of the market: the 7% national growth is not evenly distributed.

Bengaluru and Hyderabad together accounted for 25.1 million sq ft of the 54.4 million sq ft leased during the first nine months — nearly half of the total.

Hyderabad’s 47% growth is particularly significant because it indicates that the expansion is not limited to the country’s traditional office-market leader.

Mumbai and Chennai Move Against the National Trend

Mumbai recorded 7.1 million sq ft of leasing during Jan-Sep 2026, down 11% from 8 million sq ft in the corresponding period of 2025.

Chennai saw a sharper decline, with leasing falling 26% from 8.1 million sq ft to 6 million sq ft.

This creates an important distinction between national growth and individual-market performance.

The overall Indian office market is expanding, but the expansion is being driven by a combination of stronger performance in Bengaluru, Hyderabad and Delhi NCR, along with growth in Pune and Kolkata.

For Mumbai, the data therefore points to a more measured leasing environment compared with the national market during the first nine months of 2026.

The Bigger Structural Change: Flex Space

Perhaps the most consequential trend in the report is the growth of flex-space leasing.

Flex operators leased 12.6 million sq ft during Jan-Sep 2026, up 37% from 9.2 million sq ft during the same period in 2025.

Their share of total leasing increased from 18% to 23%.

Flex versus conventional office leasing

The contrast is striking.

Conventional leasing was essentially flat, increasing from 41.7 million sq ft to 41.8 million sq ft. Almost the entire year-on-year increase in overall leasing therefore came from flex-space activity.

In other words, the headline 7% growth in office leasing masks a much more substantial change in the nature of occupier demand.

ANALYTICAL BOX: WHAT IS DRIVING THE GROWTH?

Total leasing increased by 3.5 million sq ft between Jan-Sep 2025 and Jan-Sep 2026.

Conventional leasing increased by only 0.1 million sq ft.

Flex-space leasing increased by 3.4 million sq ft.

This means the increase in total leasing was overwhelmingly associated with the expansion of flex-space activity.

Colliers reported that Bengaluru and Delhi NCR were the leading flex markets, with each recording 2.8 million sq ft of flex-space leasing during the nine-month period. Delhi NCR and Hyderabad recorded more than a two-fold increase in flex-space uptake.

Technology Remains the Core Conventional Occupier

While flex-space operators are expanding rapidly, technology companies remain the largest conventional occupiers.

Technology companies accounted for close to 16 million sq ft of conventional leasing during Jan-Sep 2026.

BFSI and engineering and manufacturing followed.

Together, technology, BFSI, and engineering and manufacturing accounted for nearly three-fourths of conventional office demand during the period.

Bengaluru and Hyderabad together accounted for more than 55% of conventional technology-sector office demand, reinforcing their importance as technology-driven office markets.

Mumbai, meanwhile, remained the leading market for BFSI leasing, accounting for 30% of conventional BFSI space uptake during the nine-month period.

This creates two distinct demand engines:

Technology-led conventional demand remains concentrated in Bengaluru and Hyderabad, while flex-space growth is spreading across multiple markets.

Developers Respond With a Sharp Supply Increase

The supply side of the market is equally important.

Developers added 41.7 million sq ft of new Grade A office space across the seven markets during Jan-Sep 2026, only 1% higher than the 41.4 million sq ft added in the corresponding period of 2025.

But the quarterly picture was dramatically different.

Q3 alone saw 19.2 million sq ft of new supply, compared with 10.7 million sq ft in Q2 — an increase of 79%.

New office supply

Hyderabad led the quarterly supply addition with 6.7 million sq ft, representing 35% of Q3 additions.

Bengaluru contributed another 28%.

On a nine-month basis, Bengaluru added 14.1 million sq ft, accounting for approximately one-third of total completions across the seven markets.

Supply Is Not Moving Uniformly Across Cities

The nine-month supply figures also reveal divergent development patterns.

The data shows that Hyderabad is simultaneously experiencing strong demand and a significant increase in supply.

Bengaluru is in a similar position, although the increase in supply is smaller relative to its demand base.

Mumbai’s supply increased 26% year-on-year even as its leasing declined 11%. That divergence is worth watching because it could influence vacancy and rental dynamics within individual micro-markets.

Vacancy Rises Despite Strong Demand

The office market’s resilience does not mean that all supply-side pressure has disappeared.

Overall vacancy stood at approximately 16% at the end of Q3 2026.

Colliers said vacancy was marginally lower than the level recorded in Q3 2025 but increased sequentially during Q3 because of record supply additions and churn.

At first glance, this may appear contradictory: leasing is growing, yet vacancy has moved up quarter-on-quarter.

The explanation lies in the timing mismatch between supply and absorption.

Developers added 19.2 million sq ft during Q3, while leasing stood at 18.7 million sq ft.

That does not mean every newly completed building immediately becomes occupied. Office buildings require time for leasing, fit-outs and occupier move-ins.

WHAT THE 16% VACANCY FIGURE MEANS

Strong leasing does not automatically translate into falling vacancy.

When new supply enters the market faster than space is absorbed in the immediate quarter, vacancy can temporarily rise even while underlying demand remains healthy.

Yet Rents Are Rising

One of the more notable findings is that average rentals across the top seven office markets increased 7% year-on-year during Q3 2026.

Colliers attributed the rental increase to sustained demand for superior and green-certified developments, particularly in high-activity micro-markets.

This suggests that the market is increasingly differentiating between office assets rather than treating all Grade A supply equally.

A building may face vacancy pressure at the overall market level while high-quality, well-located and preferred assets continue to command stronger rents.

For landlords, therefore, the headline vacancy number may be less important than the quality, location and specification of individual buildings.

For occupiers, the implication is equally important: rising rents in active micro-markets could increase the cost of securing premium office space even when overall vacancy remains relatively high.

Flex Could Change the Office Portfolio Equation

The growth of flex-space leasing may represent more than a temporary response to changing workplace preferences.

Flex operators accounted for 23% of leasing during the first nine months of 2026, compared with 18% a year earlier.

The quarterly increase was even sharper: flex-space leasing reached approximately 4 million sq ft in Q3, up 49% year-on-year.

Colliers also noted that the volume of large flex deals of 100,000 sq ft or more doubled in Q3 compared with the corresponding period last year.

Colliers View

“Flex spaces could potentially form 20-25% of occupiers’ real estate portfolios over the next few years, up from 15-20% currently,” said Vimal Nadar, National Director and Head of Research, Colliers India.

If that trajectory materialises, the office market could see a continued shift from companies directly leasing large conventional offices towards a combination of conventional and managed/flexible space.

That would have implications for developers, landlords and flex operators alike.

What the Numbers Mean for Developers

The data presents a mixed but potentially favourable environment for office developers.

Demand has increased 7% year-on-year, but new supply has also remained substantial.

The key issue is therefore not simply whether demand exists, but whether new supply is delivered in markets and micro-markets where occupiers are actively looking for space.

Bengaluru and Hyderabad currently demonstrate the strongest combination of demand and supply growth.

Mumbai presents a different picture: supply increased while nine-month leasing declined.

This suggests that market-level performance can differ considerably even within a broadly positive national cycle.

What It Means for Office Occupiers

For companies, the market offers more choice but not necessarily uniformly lower occupancy costs.

Overall vacancy of around 16% indicates that significant space remains available.

However, the 7% increase in average rentals shows that high-demand locations and quality assets can command stronger pricing.

The growing role of flex space also gives occupiers another option: instead of committing entirely to long-term conventional leases, companies can increasingly combine traditional offices with flexible or managed workspace.

What It Means for India’s Commercial Real Estate Market

The nine-month numbers suggest that India’s office market in 2026 is being shaped by three simultaneous forces:

1. Sustained demand:
At 54.4 million sq ft, leasing is already 7% above the corresponding period of 2025.

2. Changing occupier behaviour:
Flex-space leasing has grown 37%, far faster than conventional leasing, and now represents 23% of the nine-month leasing volume.

3. Strong developer response:
New supply reached 41.7 million sq ft during Jan-Sep, with Q3 alone accounting for 19.2 million sq ft.

These three forces are interacting rather than operating independently.

More demand encourages new supply. More supply creates greater choice but can temporarily increase vacancy. At the same time, occupiers are increasingly using flex-space formats, changing the type of office product that is in demand.

The 2026 Office Market at a Glance

The Bottom Line: Growth, But With a Changing Market Structure

The first nine months of 2026 show an Indian office market that has remained resilient, but the more interesting story is beneath the headline leasing number.

The market has added 3.5 million sq ft of leasing over the corresponding period last year. Almost all of that incremental volume has come from flex-space operators, while conventional leasing has remained virtually unchanged.

At the same time, developers have brought more than 41 million sq ft of new space to the seven major markets, with an exceptionally strong supply addition of 19.2 million sq ft in Q3.

The result is a market that is growing while simultaneously becoming more differentiated.

Bengaluru remains the largest leasing market. Hyderabad has emerged as a major growth engine. Delhi NCR has regained momentum. Mumbai remains a significant market but recorded lower nine-month leasing than last year. Meanwhile, flex space is rapidly increasing its share of occupier demand.

The next quarter will determine how much of this momentum translates into the full-year outcome. Colliers has indicated the possibility of 75-80 million sq ft of transactions in 2026, but that remains a forward-looking estimate rather than an achieved figure.

For now, the strongest conclusion supported by the data is that India’s office market is not simply recovering or expanding in volume. It is also undergoing a change in where demand is coming from, what type of space occupiers want, and how quickly developers are responding to that demand.

Also Read: Indian Real Estate: Riding Higher in 2025

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The senior living segment, still at a relatively nascent stage in India, has increasingly emerged as an alternative real estate asset class. Colliers said the market has moved beyond conventional retirement housing, with projects increasingly integrating healthcare, wellness, assisted living and community-based services.

The market was estimated at around ₹180 billion in 2024 and has expanded to approximately ₹300 billion in 2026. Colliers forecasts that it could reach around ₹700 billion by 2028 and exceed ₹1,000 billion by 2030.

Demand for senior housing could reach 30 lakh units by 2030

One of the biggest drivers of the market is India’s rapidly ageing population.

Colliers estimates that current demand for senior living stands at around 20-22 lakh units, while organised senior living inventory is only about 25,000 units. This translates into a penetration rate of approximately 1.3%, indicating a substantial gap between potential demand and organised supply.

The demand for senior living units is projected to increase to 23-25 lakh units by 2028 and 28-30 lakh units by 2030.

At the same time, organised senior living inventory is expected to increase from around 25,000 units currently to approximately 55,000 units by 2028 and about 1 lakh units by 2030.

As a result, the penetration rate of organised senior living could rise to around 2.3% by 2028 and nearly 4% by 2030.

The expansion is expected to be supported by increasing acceptance of organised senior living communities, longer life expectancy and a growing preference for housing that combines residential accommodation with healthcare and wellness services.

India’s ageing population creates a structural opportunity

India’s demographic profile is expected to significantly change over the coming decades.

According to the data cited by Colliers from the UN World Population Prospects 2024, people aged 60 years and above currently account for around 11% of India’s population. This share is projected to rise to approximately 20.6% by 2050.

The country’s senior population is projected to increase from around 157 million in 2024 to approximately 346 million by 2050.

Colliers said rising life expectancy, the increasing prevalence of nuclear families, higher income levels and greater retirement preparedness are contributing to demand for age-appropriate residential solutions.

The report also points to increasing focus on health and wellness as a factor supporting the emergence of senior living as a more organised housing category.

Badal Yagnik, Chief Executive Officer and Managing Director, Colliers India, said India’s senior living market is entering a period of accelerated growth as demographic and socio-economic changes increase demand for professionally managed senior housing and care solutions.

According to Yagnik, organised senior living inventory could quadruple over the next three to four years, while increasing policy support, investor participation and collaboration between developers and healthcare operators could reshape the sector.

More than ₹13,000 crore investment commitments

The expected expansion of supply is also being supported by significant investment commitments.

Colliers estimates that more than ₹130 billion, or ₹13,000 crore, of investments have been announced by senior living developers, operators and investors since 2025. These investments are expected to be deployed over the next three to four years.

The investments could support the addition of close to 75,000 senior living units.

Developer-led investments currently account for a significant portion of the expected capital deployment. However, the sector is also seeing greater interest in partnerships between real estate developers and healthcare service providers.

Institutional investors are also increasingly exploring joint venture platforms with developers to expand senior living portfolios across different markets.

Vimal Nadar, National Director and Head of Research, Colliers India, said the capital commitments demonstrate growing investor confidence in the long-term potential of the sector.

He added that the development pipeline is expected to expand across both independent living and assisted living formats, while investments could help operators enter newer markets and strengthen their offerings.

Tier II and III cities, spiritual hubs emerge as new markets

While Tier I cities currently account for most of India’s organised senior living stock, Colliers expects the next phase of growth to extend beyond the country’s major metropolitan markets.

Cities such as Coimbatore, Puducherry, Dehradun and Vadodara are emerging as potential senior living destinations. Spiritual centres including Tirupati, Vrindavan and Ayodhya are also gaining attention.

These locations offer several advantages, including relatively lower living costs, improving healthcare infrastructure, more affordable real estate and a slower pace of life.

Colliers expects Tier II and III cities and spiritual hubs to account for around 30-40% of new senior living project launches going forward.

This could significantly broaden the geographical footprint of India’s senior living industry, which has traditionally been concentrated in larger urban markets.

Developers move towards integrated senior living communities

The nature of senior housing itself is also changing.

Colliers said developers are gradually moving from standalone senior living developments towards integrated living and care ecosystems.

Independent and assisted living projects continue to predominantly feature one-, two- and three-bedroom configurations. However, developers are increasingly incorporating senior living clusters into larger developments such as villas, mixed-use projects and integrated townships.

Such developments can provide residents access to shared amenities, healthcare facilities, social interaction and community activities within a larger residential ecosystem.

Future projects are also expected to cater to more specialised requirements, including dementia care, emergency support, rehabilitation and wellness services.

The report expects operator-led models to gain greater traction as developers partner with healthcare providers to create and manage senior living communities.

Technology and wellness to shape future projects

Technology is expected to become an increasingly important part of senior living developments.

Developers and operators are looking at smart home features, telemedicine, remote health monitoring and AI-enabled emergency response systems to improve safety and quality of life for residents.

Technology could also be used during construction. Colliers highlighted Building Information Modelling, automation, robotics, artificial intelligence and 3D printing as technologies that could improve project efficiency and potentially reduce development costs.

Sustainability is another area expected to influence future senior living projects, with greater emphasis on energy efficiency, green certification and wellness-oriented design.

Regulatory framework likely to become more important

The sector is also expected to see greater regulatory oversight.

Colliers noted that the regulatory environment for senior living is likely to strengthen following the renewed emphasis on model guidelines for senior living projects originally issued by the Ministry of Housing and Urban Affairs in 2019.

The guidelines are expected to encourage states and Union Territories to establish clearer frameworks for senior housing.

Alongside RERA compliance requirements, such measures could bring greater standardisation, transparency and accountability to senior living projects.

Colliers pointed out that states including Haryana and Maharashtra have already taken steps towards establishing dedicated guidelines or policies for senior living.

Senior living moves towards becoming a mainstream real estate asset class

With demand potentially reaching nearly 30 lakh units by 2030 against organised supply of only around 1 lakh units, the segment has significant room for expansion.

The combination of demographic change, increasing healthcare needs, higher retirement preparedness, developer participation and institutional investment could push senior living beyond its current niche status.

For the real estate industry, the projected increase in organised supply from around 25,000 units today to approximately 1 lakh units by 2030 represents a major expansion of a specialised housing category.

If Colliers’ projections materialise, India’s senior living market could become a ₹1 trillion-plus real estate segment by the end of the decade, while Tier II and III cities and emerging spiritual destinations could play an increasingly important role in shaping its next phase of growth.

Also Read: Indian Senior Living Sector Poised for Substantial Growth

The post India’s Senior Living Market Set to Cross ₹1 Trillion by 2030 appeared first on Square Feat India.

The Reserve Bank of India’s Monetary Policy Committee has kept the repo rate unchanged at 5.25 per cent for the fourth consecutive meeting, maintaining its neutral policy stance. The decision, announced by RBI Governor Sanjay Malhotra after the three-day policy meeting held between August 3 and August 5, comes as the central bank continues to balance domestic growth momentum against global uncertainty stemming from the ongoing West Asia conflict. Consequently, the Standing Deposit Facility rate remains at 5 per cent, while the Marginal Standing Facility rate and the Bank Rate continue at 5.5 per cent.

For homebuyers, the status quo means EMIs on existing and new home loans stay exactly where they are, at least until the next policy review scheduled for October. That predictability is quietly becoming as important to the housing market as the headline rate itself.

What the Governor Said

Explaining the rationale behind the pause, Malhotra said the MPC arrived at its decision after assessing evolving domestic macroeconomic and financial conditions alongside the global outlook, noting that the continuing conflict in West Asia has disrupted trade routes and supply chains, increased market volatility and weakened business sentiment. He flagged that global growth is expected to slow while inflation stays elevated through the year, adding to the case for caution rather than any immediate rate action.

On prices, the Governor struck a watchful but not alarmist tone. He said headline inflation is expected to rise further in the near term and likely peak in the third quarter, largely on account of food and fuel, before moderating thereafter, while underlying or core inflation has stayed contained and should converge with the headline number by the end of the financial year. Importantly, he attributed the anticipated inflation uptick to supply-side factors rather than any broad-based demand pressure, a distinction that matters, since it suggests the central bank doesn’t see the kind of runaway pricing pressure that would force its hand on rates.

On growth, Malhotra pointed to resilient domestic demand, steady expansion in manufacturing and services, and healthy exports as the pillars supporting the economy, projecting real GDP growth for FY27 at 6.7 per cent, with the strongest quarter expected to be the first at 7 per cent before moderating and picking up again by Q4. He was candid, however, that the outlook remains hazy given global trade policy uncertainties, and that greater clarity is needed on inflation’s path before any policy shift. The headline takeaway for the property market remains the fourth straight hold.

Industry Reads It as a Green Light for Festive Season Buying

Real estate voices were broadly welcoming, several framing the timing as significant given the run-up to the festive season, traditionally the busiest home-buying window of the year.

Amit Goyal, Managing Director of India Sotheby’s International Realty, called this the fourth consecutive policy with rates unchanged and said the decision reflects confidence in the resilience of the Indian economy even as crude prices stay elevated and June retail inflation touched an 18-month high. He noted this is the last policy review before the festive season, giving both buyers and developers greater certainty to plan purchases and launches, and expects the combination of steady rates and easing crude to support sentiment through the coming quarters.

Dharmendra Raichura, VP and Head of Finance at Ashar Group, echoed that view, saying the RBI’s decision to hold the rate at 5.25 per cent reinforces confidence in an already resilient residential market by providing certainty around borrowing costs. With a broad consensus among economists that the rate could stay at 5.25 per cent through the rest of 2026, he expects homebuyer sentiment, financing decisions and residential demand to stay healthy over the next six to twelve months, with predictable EMIs improving purchase planning while developers gain clearer visibility on project execution and capital allocation. He added that faster transmission of policy rates into home loan pricing by banks, along with adequate systemic liquidity, would further strengthen affordability and end-user demand.

Affordability Concerns Persist Despite Stability

Not every voice was unreservedly upbeat. Anuj Puri, Chairman of ANAROCK Group, cautioned that a steady policy rate is welcome for stability but insufficient on its own to revive the mass-market housing cycle. He pointed to ANAROCK’s Q2 2026 data showing total sales across the top seven cities fell 6 per cent year-on-year to about 90,715 units, even as affordable housing supply shrank to just 6 per cent of total launches despite overall new supply rising 7 per cent to roughly 1.06 lakh units. With average residential prices still climbing around 7 per cent annually across major cities, Puri argued that rate steadiness alone cannot meaningfully move the needle on affordability, and that the market’s apparent balance is being driven by the luxury segment rather than the broader, more rate-sensitive affordable housing category.

A Vigilant Central Bank Amid Global Headwinds

Lata Pillai, Senior Managing Director and Head of Capital Markets, India, at JLL, framed the hold as a sign of caution rather than complacency. She noted the RBI has retained its neutral stance for a fourth straight time even as inflation risk stays elevated amid the evolving global situation and concerns around the monsoon. While Q1 GDP and broader macro indicators position India favourably, she said continuing high energy costs and a watchful eye on rainfall, against a backdrop of strong domestic demand, are keeping the central bank vigilant. Pillai flagged that FY27 GDP is now projected higher than at the last MPC meeting, at 6.7 per cent, while the inflation outlook has been revised down by 10 basis points to 5 per cent, even as volatile oil prices and food inflation could weigh on the next couple of quarters. She added that a strengthening rupee has offered some relief, with liquidity remaining healthy.

Vimal Nadar, National Director and Head of Research at Colliers India, said the hold reflects a vigilant approach given the resurgence of tensions in West Asia, volatile crude, a fluctuating rupee and persistent inflationary risks, though he believes Indian real estate is well positioned to navigate these downside risks. He said rate stability continues to offer comfort particularly to buyers in the affordable and middle-income segments, and with the festive season approaching, steady EMIs could support housing demand over the coming quarters, even as rising construction and labour costs pose affordability pressures that may moderate sales compared to last year. He also pointed to RERA’s recent advisory granting a four-month extension to eligible projects affected by the West Asia conflict as a timely regulatory relief for developers.

Shrinivas Rao, CEO of Vestian, described the decision as a balanced response to geopolitical uncertainty, an uneven monsoon and rising domestic inflation, one that should support capital inflows into real estate at a time when developers are grappling with elevated construction costs and softer foreign investment sentiment. He cautioned, however, that current mortgage rates may represent only a limited window for prospective buyers, and that a 25-basis-point hike could be on the table at the next MPC meeting if crude prices and inflationary pressures intensify.

Certainty Over Cuts: What Developers and Buyers Are Saying

Akhil Saraf, Founder and CEO of proptech firm Reloy, said the unchanged rate brings much-needed stability, arguing that in today’s market predictability matters just as much as lower rates. For buyers, it means more confidence in financial planning; for developers, it offers the certainty needed to plan investments and execute projects efficiently. While he acknowledged a rate cut would have given housing demand an extra push, he said holding the rate strikes the right balance between supporting growth and containing inflation.

Ashish Sharma, AVP Operations at Brahma Group, offered a similar assessment, saying the decision reflects a balanced approach to supporting growth while ensuring macroeconomic stability amid global uncertainty. He said stable rates enhance affordability and encourage buyers to move forward with purchase decisions, while giving developers the confidence to launch and execute projects, sustaining positive sentiment and growth momentum across the sector in the months ahead.

The Bottom Line for Homebuyers

With the next MPC review not due until October, homebuyers effectively have a two-month window of rate certainty heading straight into the festive season. EMIs stay predictable, developers get room to plan launches, and the broader consensus among economists suggests 5.25 per cent could hold well into the rest of 2026. The caveat, as Puri’s data makes clear, is that stability in rates does not automatically translate into affordability, especially for the mass and affordable housing segments still contending with rising prices and shrinking supply. For now, the message from both the RBI and the real estate industry is one of steady hands rather than dramatic moves.

Also Read: RBI Repo Rate Hike: Real Estate Sector Voices for Stability

The post Homebuyers, Your EMI Won’t Rise: RBI Holds Repo Rate at 5.25% appeared first on Square Feat India.

According to Colliers India, industrial & warehousing leasing across the top eight cities touched 36.9 million sq ft in 2025, registering a 16% year-on-year growth. Nearly 45% of this demand came from large-sized transactions of over 200,000 sq ft, underlining the increasing scale at which occupiers are expanding their logistics and manufacturing footprints.

Delhi NCR and Chennai Emerge as Demand Anchors

Two markets clearly stood out in 2025 — Delhi NCR and Chennai, which together accounted for 46% of total industrial & warehousing leasing activity during the year.

• Delhi NCR led the pack with an 8.8 million sq ft absorption and a 24% share of national demand
• Chennai followed closely with 8.1 million sq ft, contributing 22%

On a quarterly basis, after a relatively muted Q3, leasing momentum picked up sharply in Q4 2025, with 10.4 million sq ft of space transacted. Chennai and Pune together made up 56% of Q4 demand, highlighting strong year-end expansion activity by occupiers.

3PL Firms Drive One-Third of Leasing Activity

Third-Party Logistics (3PL) companies continued to dominate India’s Grade A warehousing market in 2025. Colliers data shows that 3PL players leased around 12 million sq ft, accounting for 32% of total demand.

Engineering and e-commerce occupiers also gained traction and together contributed about 35% of total leasing, reflecting the growing importance of domestic manufacturing, electronics, automobiles, and online retail supply chains.

At a micro-market level:

• Bhiwandi (Mumbai) led leasing nationally with 4.9 million sq ft
• Chakan–Talegaon (Pune) and Oragadam (Chennai) followed, each crossing 2.5 million sq ft

These locations benefited from proximity to consumption hubs, manufacturing clusters, and established logistics infrastructure.

Large Deals Dominate the Market

Large-sized transactions (≥200,000 sq ft) played a defining role in shaping leasing trends in 2025:

• 16.7 million sq ft, or 45% of total leasing, came from large deals
• Delhi NCR, Chennai, Mumbai, and Hyderabad saw 50% or more of their leasing volumes coming from such large transactions

Within the e-commerce segment, nearly 61% of quarterly leasing occurred through large-format deals, driven by the expansion of fulfillment centers and regional distribution hubs.

In contrast, FMCG and retail occupiers leaned toward mid-sized warehouses (100,000–200,000 sq ft), reflecting the rise of hyperlocal and last-mile delivery models.

Key Transactions Highlight Scale of Demand

Some of the largest deals in 2025 underline the growing scale of industrial real estate requirements:

• Scootsy Logistics (Swiggy) leased 580,700 sq ft at One K Square, Bhiwandi
• Amazon took 500,000 sq ft at Welspun Logistics Park, Luhari (Delhi NCR)
• Honda leased 500,000 sq ft at Ascendas, Hoskote (Bengaluru)
• Jabil Inc. signed 385,000 sq ft at Ecobox Industrial Park, Pune

Q4 2025 alone saw marquee transactions from DHL, D-Mart, GE Vernova, and Hyundai Mobis, highlighting strong year-end occupier confidence.

Supply Pipeline Expands Amid Developer Confidence

Developers responded to sustained demand with aggressive supply additions. New completions reached 41.7 million sq ft in 2025, marking a 15% YoY increase — the highest level in recent years.

• Delhi NCR accounted for nearly 30% of total completions
• Q4 2025 alone added ~13 million sq ft, up 40% YoY

Despite rising supply, demand in active micro-markets kept vacancy levels rangebound at around 16%. Average rentals in key logistics clusters increased 5–10%, reflecting tightening availability in high-demand locations.

Outlook: Demand to Remain Concentrated in Core Markets

Commenting on the outlook, Vijay Ganesh, Managing Director – Industrial & Logistics Services, Colliers India, said strong Q4 performance, large deal sizes, and sustained developer confidence indicate long-term growth momentum, supported by government focus on manufacturing and logistics infrastructure.

Vimal Nadar, National Director & Head – Research, Colliers India, added that Delhi NCR, Chennai, Mumbai, and Pune are expected to cumulatively account for 70–80% of industrial & warehousing demand in 2026, backed by established industrial ecosystems and superior connectivity.

Also Read: Robust Investments Bolster Warehousing & Logistics Sector in 2024

The post Big-Ticket Deals Power India’s Warehousing Boom as Leasing Hits Multi-Year High in 2025 appeared first on Square Feat India.

The final quarter of the year emerged as a game changer, with Q4 2025 alone accounting for USD 4.2 billion, the highest-ever quarterly inflow recorded in the Indian real estate sector.

Domestic Capital Takes the Lead

Domestic institutional investors emerged as the primary growth engine in 2025, with investments more than doubling year-on-year to USD 4.8 billion, accounting for 57% of total inflows.

Foreign investments, while moderating by 16% YoY to USD 3.7 billion, showed clear signs of revival in the last quarter, indicating gradual recovery in global investor sentiment amid improving trade conditions and easing geopolitical uncertainty.

“Private equity investments in Indian real estate reached a new high in 2025, supported by record capital deployment in the last quarter of the year. Office assets continued to dominate, followed by residential and industrial & logistics assets,”
— Badal Yagnik, CEO & Managing Director, Colliers India

Office Assets Dominate Institutional Investments

The office segment remained the top investment destination, attracting USD 4.5 billion in 2025—nearly double the inflows seen in 2024. Office assets alone accounted for 54% of total institutional investments during the year.

Key highlights:

• Q4 2025 contributed nearly two-thirds of annual office investments
• Strong Grade A leasing activity supported investor confidence
• Increased participation from both domestic and foreign capital

The residential segment followed with USD 1.6 billion in inflows, marking a 36% YoY growth and an 18% share in total investments. Long-term demand fundamentals, favourable demographics, and joint-venture led expansion into Tier II cities continued to attract capital.

Asset-wise Institutional Investment Trends (USD million)

*Alternate assets include data centres, life sciences, senior housing, student housing, holiday homes, and schools.
Source: Colliers

Q4 2025: A Record-Breaking Quarter

Quarterly inflows peaked in Q4 2025 at USD 4.2 billion, reflecting a 123% YoY jump and a 231% QoQ rise.

Q4 2025 Asset-wise Snapshot (USD million)

REIT Momentum Strengthens Office Investment Case

The year also witnessed:

• Listing of the fourth office-focused REIT
• Portfolio expansion by existing REITs
• Higher occupancy levels and rental growth

“With over 370 million sq ft of office stock having REIT potential, we expect greater institutionalisation and consolidation in the coming years,”
— Vimal Nadar, National Director & Head of Research, Colliers India

Bengaluru and Mumbai Lead Capital Inflows

Bengaluru and Mumbai together accounted for nearly half of total investments in 2025, largely driven by large office transactions.

City-wise Investment Inflows (USD million)

Source: Colliers

Multi-city investments accounted for USD 2.3 billion, with over 40% directed towards residential projects, highlighting growing investor appetite for early-stage housing developments and emerging markets.

Outlook for 2026

Colliers expects institutional investments to remain robust in 2026, supported by:

• Growing domestic capital pools
• Improving global risk appetite
• Strong economic fundamentals

Priority segments:
Offices
Industrial & logistics parks
Residential housing

Also Read: From Crisis to Opportunity: Stressed Real Estate Projects Emerge as India’s Next Investment Frontier

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APAC Capital Flows Accelerate as Investors Seek Growth

The report highlights a decisive shift in global capital allocation towards the APAC region. APAC-focused capital raising has jumped over 130% since 2024, now accounting for 11% of global real estate fundraising in the first three quarters of 2025. Investors are increasingly targeting markets with strong economic growth and diversification opportunities.

While established destinations like Japan, Australia, and Singapore remain highly preferred, India has emerged as a key growth market for real estate investment within APAC. Expanding middle-class consumption, digital infrastructure development, and a transparent regulatory framework are positioning the region as an attractive long-term investment hub.

India at the Centre of APAC Investment Strategy

The report underscores India’s rising appeal for large-scale capital deployment across core and alternative real estate assets. Investors are particularly interested in land and development-led opportunities, alongside institutional-quality stock in office, residential, industrial and logistics, and data centre segments.

Institutional investments in India totalled USD 4.3 billion during the first nine months of 2025, driven by steady quarterly momentum. With expectations of strong closures in Q4, annual investment volumes for 2025 are projected at USD 5–7 billion, supported by balanced participation from domestic and foreign investors.

Leadership Commentary

Badal Yagnik, CEO & MD, Colliers India, said:
“Investments in India’s real estate sector have demonstrated remarkable resilience. We foresee annual investments of USD 5-7 billion in 2025 and 2026, driven by robust domestic growth, rising urbanization and expanding infrastructure. Both domestic and offshore capital are expected to accelerate, reinforcing India’s position as a resilient, high-potential market.”

Vimal Nadar, National Director & Head of Research, Colliers India, added:
“Office and residential will continue to dominate investments, while industrial & logistics and alternative assets such as data centres will gain traction. Cross-border capital will remain essential as India strengthens its presence among APAC’s preferred destinations.”

Key Sectors to Drive Investments in 2026

Office & Residential

These segments are projected to contribute nearly 60% of India’s investment activity in 2026, supported by sustained occupier demand and a strong development pipeline.

Industrial & Logistics

Investor focus in APAC is led by the I&L sector, driven by e-commerce expansion. Demand for big-box warehousing, last-mile logistics, and cold-storage facilities continues to rise, particularly in India, Japan, and Australia.

Data Centres

Data centre assets are emerging as a high-growth opportunity in Singapore, Australia, and India, supported by hyperscale demand and digital infrastructure expansion.

Retail & Hospitality

Retail assets are regaining investor confidence as supply stabilizes. Hospitality and student housing are expected to attract capital as tourism rebounds and educational migration rises.

India Strengthens Position as Cross-Border Capital Magnet

The survey finds that 64% of APAC investors expect economic improvement in 2026, and nearly 60% are optimistic about liquidity and rental growth. The growing participation of family offices and high-net-worth investors is expected to intensify competition for high-performing assets.

Summarizing market sentiment, Sam Harvey-Jones, COO, Asia Pacific, Colliers, said:
“Investors are shifting decisively toward stability and opportunity as markets regain footing. Improving fundamentals and normalizing pricing expectations are fuelling optimism for 2026.”

Conclusion

With strong economic fundamentals, deepening institutional-grade supply, and expanding participation from foreign and domestic investors, India is positioned to play a central role in driving APAC real estate capital flows through 2026. A steady rise in demand across office, residential, I&L, and data centre assets is expected to keep momentum firm in the coming year.

Also Read: India Leads APAC Real Estate Investments with 88% Growth in H2 2024

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Airport + Atal Setu = New Growth Frontier

Vimal Nadar, National Director & Head of Research, Colliers India, says:

“The opening of the Navi Mumbai International Airport signifies more than just a milestone in air travel. It marks a pivotal transformation in the region’s real estate landscape, particularly within the residential and commercial sectors. The announcement of this upcoming airport had already triggered a substantial rise in property values across key areas in the vicinity including Uran-Ulwe, Kharghar, Dronagiri, Taloja, and Panvel. This greenfield airport will further accelerate the growth, driving sustained demand and significant price appreciation, presenting lucrative long-term investment opportunities.”

According to Nadar, Navi Mumbai’s positioning as a sub-dollar office market — with lower rentals compared to central Mumbai — combined with enhanced global access, is expected to spur commercial leasing activity. He adds that the proposed Aerocity, which will integrate commercial, residential and recreational spaces, will help create “a new urban ecosystem that blends work and lifestyle.”

The Atal Setu sea bridge, which has dramatically cut travel time between Navi Mumbai and South Mumbai, is another game-changer that places Panvel firmly on the real estate radar of buyers, developers, and investors.

Panvel Outpaces Navi Mumbai in Property Appreciation

The Panvel region has recorded extraordinary price growth, outpacing the rest of Navi Mumbai in both apartments and plotted developments:

Asset Type	Panvel Region (FY21 → FY25)	Rest of Navi Mumbai (FY21 → FY25)
Apartments	₹10,000–12,000 per sq.ft 74% growth	₹19,000–21,000 per sq.ft 45% growth
Residential Plots	₹80,000–85,000 per sq.yd 93% growth	₹1,10,000–1,30,000 per sq.yd 58% growth

Deepak Khandelwal, Principal Partner & Chief Sales Officer at Square Yards, observes:

“The Navi Mumbai International Airport stands as a cornerstone of the region’s broader infrastructure push, supported by major upgrades in road, rail, metro, and waterway connectivity. Its imminent operationalisation has already begun to reshape the real estate landscape, particularly across the Panvel region. Localities such as New Panvel, Old Panvel, Kharghar, Ulwe, and Taloja are witnessing a surge in development, with a growing supply of premium residential projects, gated communities, and large integrated townships.”

He adds,

“The market response has been strong, with apartment prices in the Panvel region rising by nearly 74% between FY 2021 and FY 2025, compared to 45% growth across the rest of Navi Mumbai. With the first phase to be inaugurated today and full-scale operations expected soon, the airport is set to drive the next wave of value creation, reinforcing Panvel’s position as one of the most promising growth hubs not only within the Mumbai Metropolitan Region and beyond.”

What This Means for Homebuyers and Investors

For homebuyers, Panvel has transformed from a “future promise” market to a now-or-never opportunity. The combination of airport-led infrastructure, lower ticket sizes, and premium township launches offers buyers both lifestyle and appreciation potential.

For investors, Panvel offers two distinct advantages:

1. Capital appreciation: Strong price momentum already visible pre-airport inauguration.
2. Rental yield & commercial play: With Aerocity and new office corridors on the cards, Panvel could evolve into a new residential-cum-business hub — similar to Gurugram post-IGI airport expansion.

Developers, meanwhile, are fast-tracking launches to tap into this demand surge, especially in New Panvel, Kharghar, Taloja, and Ulwe — areas well connected to the upcoming airport and metro lines.

The Takeaway

The Navi Mumbai International Airport is not just another infrastructure project — it is redefining the real estate geography of MMR. As phase one goes live, Panvel stands at the cusp of its biggest transformation yet, with growth driven by connectivity, infrastructure, and investor confidence.

For those who saw Panvel as “too far” a few years ago, the airport’s inauguration may well be the inflection point.

Also Read: Airport Micro-Markets See Steepest Property Price Surge

The post ✈️ Navi Mumbai Airport to Take Off — Panvel Property Prices Already Soaring 74% appeared first on Square Feat India.

This shift isn’t just about big funds—it has direct implications for homebuyers, office workers, and urban growth.

Domestic Investors Step Up as Foreign Capital Eases

Foreign investments into Indian real estate have dipped 36% year-on-year to USD 2.1 billion, reflecting global caution amid geopolitical tensions and tighter cross-border capital rules. In contrast, domestic institutional capital has surged 52% YoY to USD 2.2 billion, signaling stronger local confidence.

This growing domestic participation means more consistent funding for housing projects, potentially improving construction timelines and reducing the risk of stalled projects—an issue that has historically troubled homebuyers.

“Institutional investments in Indian real estate touched USD 1.3 billion in Q3 2025 —an 11% increase year-on-year. Domestic capital contributed 60% of the quarterly inflows, with strong interest in office and residential segments,” said Badal Yagnik, CEO, Colliers India.

Office & Residential Segments Lead — What It Means for Urban Residents

The office segment continues to dominate institutional interest with USD 1.5 billion, making up 35% of total inflows so far this year. Residential real estate follows with USD 1.1 billion, up 11% YoY.

For urban professionals, especially in metro cities, this means steady supply of Grade A office spaces, often linked to new job opportunities in tech, BFSI, and emerging sectors. Meanwhile, increased capital flow into residential projects can boost housing supply, stabilizing prices in some micro-markets over the medium term.

“After a relatively subdued first half, institutional investments in India’s office segment rebounded strongly in Q3 2025, rising 27% year-on-year to USD 0.8 billion. Office assets accounted for over 60% of total quarterly inflows, led by notable acquisitions of ready commercial properties, particularly in Chennai and Pune,” said Vimal Nadar, National Director & Head of Research, Colliers India.

Mumbai & Bengaluru Lead, Tier II Cities Emerge

Mumbai and Bengaluru together accounted for one-third of all real estate investments this year, attracting USD 0.8 billion and USD 0.5 billion respectively. Pune saw a dramatic 25-fold increase in Q3 inflows, signaling rising investor interest in non-metro markets as well.

For end-users and small investors, this means new real estate hotspots may emerge outside traditional metros, potentially offering more affordable housing and job clusters in the coming years.

Why This Matters to the Common Man

• Homebuyers: More domestic funding can mean better project completion rates and new housing supply in both metros and smaller cities.
• Job Seekers: Increased office investments point to expanding business activity, particularly in IT and services, which often translates to new hiring.
• Small Investors: Institutional capital flow often signals market confidence, making it a useful macro indicator for long-term investment decisions.
• City Residents: Rising real estate investment in Tier II cities can lead to better infrastructure, transit, and new business hubs.

Also Read: 625 Day Delay Costs Homebuyers Their Appeal

The post Indian Realty Attracts $4.3 Billion in 2025 — Domestic Investors Take the Lead as Global Capital Cools appeared first on Square Feat India.

Expert Views on Festive Real Estate

Luxury Housing Outlook

According to Ashwin Chadha of Sotheby’s, luxury real estate demand is steady with a 15–20% jump in enquiries this festive season. While HNIs remain relatively unaffected by small price movements, they are cautious in overheated micro-markets. Globally, expected US rate cuts are boosting liquidity, reinforcing luxury property’s appeal as an inflation hedge, source of rental yields, and capital appreciation. HNIs are also diversifying into REITs, AIFs, and structured products, which complement physical property investments.

Mid-Range & Premium Housing Trends

Ganesh Devadiga of Square Yards noted that festive seasons typically drive strong new launches and booking momentum, with many conversions expected in the coming quarters. Developers are rolling out offers aligned with auspicious buying sentiment, while repo rate cuts and GST relief are cushioning rising property prices. He expects the year to close on a positive note, with sustained buyer confidence driving activity.

Affordable & End-User Demand

Ravi Shankar Singh of Colliers India believes this is an ideal time for end-users to purchase homes, given a combination of GST cuts on construction materials, attractive developer schemes, and stable loan interest rates. Beyond the financial incentives, cultural belief in the auspiciousness of the festive season also drives decisions. Singh, however, advises buyers to prioritize developer credibility, construction quality, and base pricing over just festive discounts.

Bigger Picture

From luxury villas in prime micro-markets to affordable housing projects on city outskirts, the festive season of 2025 is expected to act as a strong catalyst for India’s housing market. Developers are using this window to push sales, buyers are locking in deals, and investors continue to diversify their strategies. With a combination of policy support, festive optimism, and stable financing, experts forecast a robust close to the year for Indian residential real estate.

Also Read: The Role of Policy in Driving Sustainable Real Estate Development

The post Festive Season Brings Cheer to India’s Housing Market: Experts See Strong Momentum Across Segments appeared first on Square Feat India.

Traditionally concentrated in Tier I cities like Mumbai, Delhi NCR, and Bengaluru, serviced residences are now gaining traction in tourism-centric destinations such as Goa, Rishikesh, and Kasauli. These properties, typically branded and tied up with hotel operators, offer the combination of home-like living with four- and five-star hospitality services — catering to both leisure and business travellers.

Tourism-Driven Growth

The report highlights several factors fuelling demand in tourist hubs:

• Longer stay preferences and experiential travel.
• Rise of remote and flexible work.
• Growing shift from hotels to branded managed residences.
• Second-home buyers prioritising rental visibility and lifestyle ROI.

In Tier I cities, branded serviced residences currently command premium sale prices — around ₹22,000 per sq. ft. in Delhi NCR, ₹19,500 per sq. ft. in Bengaluru, and ₹25,000 per sq. ft. in Mumbai. By contrast, tourist destinations provide lower entry points: Goa at ~₹11,500 per sq. ft., Kasauli at ~₹9,500 per sq. ft., and Rishikesh at ~₹8,500 per sq. ft.

Goa as the Hotspot

Goa has emerged as the leading market, recording nearly 2.6X price appreciation between 2019 and 2025 — from ~₹4,000 to ~₹10,300 per sq. ft. Colliers projects further growth of 2.5–3X by 2032, supported by expected rental yields of 8–12%.

North Goa’s hinterland, aided by the operational Mopa International Airport, proposed Aerocity, and expansion under the DMIC corridor, is transforming into a strategic real estate corridor. The shift from standalone villas to apartment-style serviced residences is also gaining momentum, reflecting evolving buyer preferences.

Investment Outlook

“Serviced residences are transforming into a high-performing asset class, combining investment growth with lifestyle appeal. With rising demand across emerging micro-markets, investors and homeowners have a unique opportunity to unlock long-term returns, capital appreciation, and consistent rental yields,” said Swapnil Anil, Managing Director, Advisory Services, Colliers India.

Colliers expects the trend to deepen as both global travellers and domestic buyers increasingly seek flexible, lifestyle-driven housing solutions in India’s leisure destinations.

Also Read: Pradeep Gupta Buys ₹131 Crore Luxury Flat in Lodha Sea Face, Worli

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