Housing market outlook: Nearly 70% developers see over 5% rise in home prices in 2026; demand remains strong

Nearly 70 per cent of real estate developers expect housing prices to rise by more than 5 per cent during the 2026 calendar year, driven by sustained demand, according to a sentiment survey conducted by industry body CREDAI and property data analytics firm CRE Matrix, PTI reported.The survey, conducted in November and December with responses from 647 developers, found that 68 per cent of participants anticipate home prices to increase by over 5 per cent next year. Of these, 46 per cent expect prices to rise in the 5–10 per cent range, while 18 per cent see appreciation between 10 per cent and 15 per cent. Around 3 per cent of respondents forecast a sharper rise of 15–25 per cent, and 1 per cent expect prices to climb by more than 25 per cent.Only 25 per cent of developers believe price growth will be below 5 per cent, while 8 per cent expect negative growth in housing prices.The survey report was released during a CREDAI conclave held in New Delhi on December 19–20.Beyond pricing, the survey indicated a broadly positive outlook for the residential segment in 2026. Nearly two-thirds of developers said they expect demand for homes to grow by more than 5 per cent in the coming year, reflecting continued end-user interest rather than speculative buying.Commenting on the findings, CREDAI president Shekhar G Patel said the survey shows that growth in the housing market is increasingly anchored in genuine demand. “The sector is witnessing a calibrated approach to new supply, with stronger emphasis on cost efficiency through technology adoption and closer alignment between product offerings and evolving homebuyer preferences,” Patel said.He added that faster project approvals and greater regulatory clarity would be critical to sustaining the momentum. “Streamlined clearances can unlock the next phase of housing supply across markets, support timely project delivery, and enable more balanced and sustainable urban growth,” Patel said.Abhishek Kiran Gupta, CEO and co-founder of CRE Matrix and IndexTap, said the findings point to steady demand expectations, disciplined supply addition and a sharper focus on long-term value creation in the residential real estate sector.CREDAI represents more than 13,000 real estate developers across the country.