New Delhi:
India’s real estate market is increasingly showing a two-speed trend, with office, flexible workspace and logistics segments recording strong demand even as residential markets see a rise in unsold inventory, report the “Real Estate Tracker - Sept 2026” report by Equirus.
The report said net office absorption across the top seven cities stood at 27.4 million square feet in the first half of 2026, up 2% year-on-year, while office completions declined 10% to 22.2 million square feet. Vacancy fell to a multi-year low of 15%.
The flexible workspace segment also recorded a sharp expansion. Flexible workspace operators leased 191,306 seats in H1 2026, up 68.4% year-on-year and accounted for around 20 per cent of total office leasing during the period, compared with 13% a year earlier.
The logistics and industrial segment also remained on a strong footing. Leasing across the top eight cities rose 18% year-on-year to a record 36.2 million square feet in H1 2026.
Warehousing accounted for 24.3 million square feet, or 67% of absorption, while third-party logistics (3PL) players leased 12.2 million square feet, with their share rising 64% year-on-year.
The residential market showed inventory build-up, with unsold units across eight major markets rising 4% YoY to 525,695 in H1 2026 and quarters-to-sell increasing to 6.0 from 5.8 at year-end 2025.
Ahmedabad recorded the highest inventory overhang at 8.1 quarters, followed by the National Capital Region at 7.6 quarters, according to the report.
Despite the softer absorption trend, developers continued to plan large luxury housing launches. The report said developers were preparing close to ₹1 lakh crore worth of luxury residential launches in Gurugram in H2 FY27.
The report also noted that the Indian listed REIT universe had expanded from four to six trusts, with listed REITs distributing ₹3,136 crore in Q1 FY27, more than double the ₹1,559 crore distributed a year earlier.
Overall, the data in the report indicates that India’s property market is not moving in a uniform direction, with stronger demand and tighter conditions in key commercial segments co-existing with higher residential inventory levels. - ANI
