After years of post-pandemic exuberance driven by premium and luxury housing, India’s residential real estate market is entering a turning point. A new report by real estate platform Square Yards indicates that the mid-segment housing market is set to become the primary growth engine in 2026, as the premium cycle begins to peak in key urban markets.

The report, “2025 Recap, 2026 Outlook: Residential Real Estate”, highlights a market that is no longer expanding on volumes alone but is transitioning towards value-led, end-user-driven growth.

Big Shift in 2025: Fewer Homes Sold, But at Much Higher Value

The most striking takeaway from 2025 data is the disconnect between transaction volumes and sales value.

In India’s nine major residential markets:

• Residential transactions fell by 5% year-on-year
• Total residential sales value rose by over 11%
• Average deal size jumped by 22%

This indicates that while fewer homes changed hands, buyers were purchasing larger, more expensive units, largely in the premium and luxury segments.

Premium Housing Shows Early Signs of Saturation

According to Square Yards, 2025 may mark the high point of the premium and luxury housing cycle, especially in mature markets.

• Sustained price appreciation over the last 3–5 years has begun to stretch affordability
• Incremental growth in luxury housing is expected to moderate in 2026
• The shift is seen as stabilisation, not a slowdown

“This divergence reflects a maturing market, where growth is increasingly demand-driven rather than volume-led,” said Tanuj Shori, Founder & CEO, Square Yards, noting that premium housing dominated value contribution in markets like Mumbai Metropolitan Region (MMR).

Regional Trends: West Leads Value, South Holds End-User Strength

The report points to clear regional divergence in buyer behaviour:

• Western India accounted for over 80% of total registered sales value in 2025, driven by higher ticket sizes
• Southern markets like Bengaluru and Hyderabad continued to show strong end-user participation
• NCR markets displayed sharp price segmentation:
  • Affordable and mid-market homes drove volumes
  • Premium demand remained selective and location-specific

This points to a more informed, segmented, and mature buyer base.

Why the Mid-Segment Will Dominate 2026

The report identifies the mid-segment (homes priced between ₹80 lakh and ₹1.5 crore) as the biggest beneficiary of the next market cycle.

Key reasons:

• Housing inflation is moderating in several saturated premium markets
• Price growth is stabilising, improving affordability for mid-income buyers
• Infrastructure expansion is opening up peripheral urban corridors
• Buyers are prioritising value, livability, and long-term usability over status-driven purchases

As premium markets stabilise, incremental demand is expected to shift decisively towards the mid-segment.

Property Prices: Post-Covid Surge Now Normalising

While property prices have risen sharply since 2019 across cities, 2025 shows uneven momentum:

• Strong YoY price growth in markets like Pune, MMR, Chennai, and Noida-Greater Noida
• Slower growth in Ahmedabad, Hyderabad, and Kolkata
• The post-Covid price boom is giving way to more measured appreciation

This normalisation further supports mid-market affordability.

Supply Responds to Demand, But Cautiously

Developers appear optimistic but disciplined:

• New residential launches rose 18% in 2025
• Supply growth remains controlled, avoiding oversupply risks
• Focus is shifting to mid-income and end-user-friendly projects

Execution quality and location selection will be critical for success in the next phase.

2026 Outlook: From Expansion to Equilibrium

According to the report, India’s housing market is moving into a balanced phase:

• Transaction volumes likely to remain stable
• Average ticket sizes to stay elevated
• Price growth expected to be more evenly distributed
• Growth driven by real demand, not speculation

Overall, the sector appears positioned for sustainable, broad-based progress, anchored by the mid-segment rather than luxury exuberance.

Also Read: Affordable Homes Selling Faster, Luxury Homes Slowing Down

The post Luxury Boom Loses Steam: Mid-Segment Homes to Power India’s Housing Market in 2026 appeared first on Square Feat India.

Positive Sentiment for Women Buyers

Vikas Tomar, Executive President & Business Head at Square Yards, said the decision is expected to significantly improve market sentiment, especially among first-time women homebuyers.

“This move will likely boost sentiment among women aspiring to own a home. It encourages more families to register properties in the name of women, supporting broader goals of financial inclusion and empowerment,” he noted.

Tomar added that the mid-segment housing market—which already appeals to end-users and first-time buyers—is likely to benefit the most. “With this added incentive, we’re likely to see greater interest in the mid-range category across cities like Noida, Greater Noida, and Ghaziabad,” he said.

Call for Inclusive Reforms Across Buyer Segments

While welcoming the move, some industry stakeholders believe the government should go further. Vikas Bhasin, Managing Director of Saya Group, acknowledged that a reduction in stamp duty eases the financial burden on homebuyers but urged for more comprehensive reform.

“Stamp duty and other levies form a significant part of home-buying costs. Any reduction certainly helps buyers save money, but we have consistently advocated for a broader reduction in stamp duty,” Bhasin said.

He emphasized that the current system of charging GST on under-construction properties, in addition to stamp duty, significantly inflates the final cost. “The government should consider reducing these charges for all homebuyers, regardless of gender or property value, to make homeownership truly affordable,” he added.

Mid-Segment Housing in Focus

According to market analysts, the mid-segment housing category—typically priced between ₹40 lakh and ₹1 crore—has remained resilient amid broader market fluctuations and is likely to attract even more traction with this policy change. Developers anticipate a rise in women-centric bookings and are likely to tailor offerings accordingly.

With residential demand already on the rise in UP’s NCR pockets, the latest move is expected to add momentum to end-user activity while also aligning with long-term goals of financial inclusion and gender equity in property ownership.

Also Read: Big announcement for Women Homebuyers

The post UP Govt Cuts Stamp Duty for Women Homebuyers: Real Estate Experts Welcome Move, Call for Broader Reforms appeared first on Square Feat India.