India’s housing market is entering a new phase this year, with lifestyle and sustainability-led preferences set to play a decisive role in home-buying decisions, industry insiders have said.
Annual housing demand is expected to remain around 30–40 million square feet in 2026, with new supply estimated at 35–40 million square feet, a report by real estate consultancy Colliers India has said.
Market observers says buyers are increasingly prioritising wellness, sustainability, efficiency and long-term liveability, reflecting evolving urban lifestyles and the growing influence of work-from-home and hybrid work models.
Lifestyle and wellness take centre stage
Larger homes, integrated lifestyle amenities, open green spaces and community-oriented planning are fast becoming central to purchase decisions, they said.
Gaurs Group CMD Manoj Gaur said buyers are far more conscious about how a home supports their lifestyle over the next decade.
“In 2026, demand will increasingly gravitate towards developments that offer wellness-focused amenities, green open areas, and sustainable design. Buyers are not just looking at square footage—they want experience-led living and environments that enhance overall quality of life,” he said.
Yamini Agarwal, CMO, Nimbus Realty, lifestyle-oriented homes are no longer limited to luxury buyers.
“We are seeing strong interest even from end-users upgrading from mid-segment housing. They want larger homes, better air quality, open spaces, and a sense of community. Projects that integrate lifestyle and sustainability from the planning stage are seeing better absorption and stronger buyer confidence,” she said.
Sustainability moves from optional to essential
Market observers say sustainability is fast becoming a core driver of residential demand, propelled by rising awareness of climate risk, higher utility costs and a desire for healthier living spaces.
According to a report by Carbon Guardians, a sustainability-focused real estate solutions firm, India’s green building market is projected to grow to nearly $85 billion by 2032.
“Developers who embed sustainable features at the planning stage such as rainwater harvesting, solar integration, waste-management systems, and low-carbon materials are seeing better traction in the market,” Gaur added.
Gautam Kanodia, Founder, KREEVA and Kanodia Group, said energy-efficient and ESG-aligned homes are attracting not only lifestyle buyers but also institutional interest, as sustainable design becomes an increasingly important metric for long-term value and investment quality.
“Sustainability and lifestyle aren’t just buzzwords, they’re becoming core decision filters for buyers. Future-ready homes with strong ESG credentials are likely to outperform in both absorption and resale value in 2026,” he said.
Branded housing to lead growth
The Colliers report also points to broader market trends supporting lifestyle and sustainability-led demand.
Developers are responding by launching branded and experience-oriented projects that combine premium lifestyle amenities with strong design and sustainability measures, targeting buyers who value comfort, long-term income potential and quality of life.
Agarwal said the evolving buyer base in 2026 includes affluent end-users and dual-income families seeking wellness-oriented environments, professionals prioritising work-life balance and community living, NRIs and investors focused on sustainability and branded housing promising capital preservation.
“Compared to a few years ago, buyers are now as concerned about where they live and how they live as much as what they pay,” she said.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
