India’s residential market to dominate 70% of real estate by 2026; here’s what’s driving it

India’s real estate sector, comprising residential, commercial, retail, hospitality, and SEZ spaces, is witnessing strong demand, with the residential space alone expected to account for 70% of the market by 2026, with 10 million new homes, according to the latest report by investment firm Equirus Capital. There has been a strong momentum in the residential sector, with Q1 CY25 sales hitting 93,280 units, backed by established developers, a stable economy, and positive buyer sentiment.

In the commercial space, the leasing volume hit 20.3 mn. sq. ft. in Q1 2025, a 5% YoY growth, with the overall commercial market projected to grow at a 19.8% CAGR, reaching $253 billion by 2033. In the retail space, FDI in multi-brand retail is seen boosting demand, with leasing hitting a 5-year high of 3.1 MSF (H1 2024). The report says the top 7 cities have added 9 million sq. ft. of retail in 2025 (vs. 8.7M in 2023).