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The year 2026 will see real estate developers in India once again focus on building mid-segment homes priced between Rs 1.5 crore and Rs 2 crore as sales of luxury homes are unlikely to boost volumes in the long term, according to a senior executive at Bengaluru-based Prestige Group.
“At Prestige, we are expecting a lot more launches in the mid-segment – Rs 1.5 crore to Rs 3 crore. The bulk of our launches will take place there. The overall market will also move in this direction,” says Praveer Shrivastava, Senior Executive Vice President, Residential, Prestige Group.
“Luxury is still a niche market. Once you reach a stage where supply increases in luxury, the volumes will no longer be available to any developer if we continue to cater to the luxury market. Therefore, for the volumes and the resulting sales value, people will have to come back to the mid-segment,” says Shrivastava, adding, “it’s a cycle.”
Over the past two years, developers, buoyed by overall momentum in home sales, have moved toward larger homes, from 2,000 to 6,000 square feet. However, most customers reside in a ticket size of Rs2-3 crore, says Shrivastava. “By 2026, the majority of our products will be in sizes of 1,500 to 2,200 square feet. »
“Although the price per sq ft has increased by 60% in the last four years, the areas have also increased. To ensure you stay within this range of Rs 1.5-3 crore, the area will have to be optimized. Therefore, 1,500-2,000 sq ft is the optimum area which can be achieved with a ticket of ₹1.5-3 crore. This ticket size is where the bulk of the customers We need to design our product around that.
Shrivastava says the company is on track to meet, or perhaps exceed, the guidance of ₹25,000 crore to ₹27,000 crore for the current financial year. “In the first half of FY26, we have already achieved Rs 18,000 crore in sales. Of the Rs 18,000 crore we achieved in the first half, Rs 8,500 crore came from our foray into the Delhi-NCR market with Prestige City Indirapuram. This was our first project, which was embraced by the market.”
The Bengaluru-based developer is also looking to enter the Gurugram and Noida markets in the NCR (National Capital Region). “We are actively looking for development options in Gurgaon. Hopefully, in this calendar year, you will see us in Gurugram and Noida markets. In Sector 150 of Noida, we already have a piece of land which is awaiting clearance.”
“Large metropolises will continue to benefit from good absorption, provided that prices and products are reasonable,” he says.
