The year 2025 that witnessed healthy growth of real estate is marked by several distinct trends. Colliers India highlights 10 hot trends which will gain further traction in 2026

GCCs driving high-value growth:

Registering continuous growth, GCCs in 2026 and beyond, will firmly establish themselves as strategic centers for research, product development, advanced analytics, artificial intelligence, and cloud technologies, supported by the country’s strong IT ecosystem and business-conducive government policies. GCC leasing is expected to reach 30-35 million sq ft in 2026, and account for 40-50% of the Grade A office space demand. Moreover, GCC demand is likely to become more broad-based and expand beyond technology firms, with notable surge in demand from global financial services, engineering & manufacturing and healthcare companies.

Flex spaces to become an unavoidable feature of occupier strategy:

Flexible workspaces which gained strength in 2025, are expected to account for nearly 20% of Grade A leasing, driven by hybrid work models, cost optimization, and the need for speed-to-market solutions. With flex stock projected to reach 85-90 million sq ft in 2026, leading operators will continue to offer enterprise-grade and fully managed solutions that integrate technology, sustainability, and portfolio agility. Further, GCCs are set to deepen their flex space adoption, contributing 40-45% of the total enterprise demand of 200,000 seats, as they prioritize scalable, highly customizable workplaces built to global standards.

REITs and IPOs to democratize commercial real estate: 

India’s office market is entering a new era of democratization driven by increasing number of equity market listings in the form of REITs, SM REITs and Initial Public Offerings (IPOs), especially by flex space operators. Interestingly, of the ~850 million sq ft of Grade A office stock in the country, around 135 million sq ft of assets are already listed under REITs, translating into a penetration of nearly 16%. With over 370 million sq ft of existing stock having a potential to be listed in future REITs and more office-specific REITs being on the anvil, this penetration can touch 20% over the course of next few years—marking a steady shift in how commercial real estate is owned, managed and monetized in India. Concurrently, leading flex space operators are likely to expand their portfolios across Tier I & II cities, expediting their IPO plans in the next year.

Workspace design to seamlessly embed AI and PropTech: 

The design and functionality of new-age workspaces are being reimagined to enhance collaboration and employee experience using AI and PropTech. This trend is set to gain further prominence in 2026, with AI-led space planning and IoT sensors optimizing collaboration zones and energy efficiency. Predictive analytics will further support real-time fault detection and diagnostics, while automated HVAC, lighting and utilities will help reduce operational costs. Such adaptive workspaces integrating wellness features, ergonomic design, and biophilic elements will continue to boost productivity, well-being and become the cornerstone of future office spaces.

Retrofitting & green energy usage will become central in the ‘flight-to-quality’: 

Sustainability is becoming a defining feature of India’s office market, with green-certification now a mandatory requirement for most occupiers. Going ahead in 2026, 80-90% of the new supply is expected to be green certified, pusing overall green penetration to 70-75% at the India level.  ‘Flight-to-quality’ will gain more traction as occupiers prioritize premium, ESG-compliant assets with advanced energy efficiency and wellness standards.  In fact, older buildings (>10 years), totaling over 350 million sq ft, present retrofitting potential of more than INR 425 billion, which can ultimately ensure higher occupancy levels and rentals for developers and investors alike in the long-term.

Lifestyle and sustainability led home buying preference to pick pace: 

Homebuyers in 2026 are likely to increasingly prioritize lifestyle and sustainability driven housing projects. Demand for plotted developments, gated-community villas, premium homes with concierge services, and vacation homes in offbeat locations will remain strong as buyers seek spacious, wellness-focused, and experiential living experiences. At the same time, the preference for green homes using smart technologies and energy-efficient materials is also likely to increase, driven by government incentives and growing consumer awareness.

Redevelopment projects to reshape urban skylines: 

India’s urban housing market is set to transform steadily as redevelopment initiatives gather speed across major cities such as Mumbai, Delhi NCR, Bengaluru, Chennai, Kolkata etc. Redevelopment of older and dilapidated buildings will be increasingly supported by favourable Floor Space Index (FSI) policies, Transferable Development Rights (TDR) frameworks, and revised urban planning guidelines. Close coordination between government bodies and private developers will be crucial in addressing redevelopment challenges and creating contemporary, resilient urban neighborhoods.

Fringe localities to gain traction, driven by infrastructure developments:

Peripheral and suburban micro markets of most Tier I cities are anticipated to witness heightened residential activity in 2026, supported by ongoing infrastructure developments such as expressways, metro extensions, arterial corridors, and greenfield airports. These enhancements will unlock new residential pockets, improve accessibility, and stimulate housing demand across major transit corridors. Residential catchment areas in peripheral localities particularly will emerge as complementary growth centers, offering budget-friendly options across housing segments.

Leading developers to increasingly foray into untapped Tier II/III markets: 

Beyond the established markets, Tier II & III cities, including spiritual hubs & temple towns are set for long-term growth, driven by urbanization, favorable demographics, and infrastructure upgrades. Demand traction and preference for premium product offerings will push property prices in these smaller cities up up by 10-15% annually.  supported by better infrastructure and targeted expansion by reputed developers.

Fractional ownership poised to broaden access in premium housing:

Investors are expected to increasingly adopt fractional ownership as a strategy to enter residential real estate at relatively lower price points. This model allows multiple stakeholders to co-own premium assets such as luxury homes, vacation properties and high-end condominiums, bringing greater flexibility, liquidity, and passive income opportunities. However, its continued growth will depend upon factors including clear regulations and a strong digital infrastructure to ensure transparency in transactions, bringing in trust in shared ownership.