A similar note of caution came recently from Crisil, which expects residential price growth to slow to 3-5 per cent in 2026-27, a sharp drop from the robust 11 per cent annualised growth seen between 2021-22 and 2024-25.
The exuberance seen in 2023 and early 2024 is no longer evident. Elevated property prices have strained affordability and slowed down the pace of transactions. “After a phase of strong double-digit growth, some flattening in prices was inevitable,” says Ashwin Chadha, chief executive officer (CEO), India Sotheby’s International Realty.
“The war in West Asia and broader global headwinds, leading to layoffs and job uncertainties, have led many buyers to put their purchase decisions on hold,” says Prashant Thakur, executive director and head, research and advisory, Anarock Group.
Housing supply has risen across the top seven cities, with over 1.25 lakh units being launched in the first quarter of 2026.
The moderation in price growth spells opportunity for buyers. “While large developers are not offering major discounts, some are offering flexi-payment options. Smaller developers with high inventory remain open to negotiations,” says Thakur.
Experts say opportunity is emerging in secondary markets across the top seven cities. “Opportunity is also available selectively in luxury, where some investors may become impatient and offer better deals,” says Chadha.
Negotiating with large, listed developers, especially in low-inventory projects, may be challenging. “Buyers seeking a good price may consider smaller developers, provided they have a good construction track record,” says Thakur. Meanwhile, the limited-period flexi-payment schemes being offered by some large developers could also improve affordability for some buyers.
Chadha suggests that while developers are unlikely to cut prices publicly, there is room for negotiation behind closed doors.
Construction costs have gone up amid the war. However, most large and listed developers remain financially sound. They have also become more cautious about delays and non-completion. “However, projects by smaller developers with high available stock may face issues, making careful due diligence essential for buyers,” says Thakur.
Financial experts advise buyers to avoid overleveraging. “Maintaining a conservative loan-to-value ratio helps keep debt manageable in case there are interest rate hikes or income fluctuations,” says Abhishek Kumar, Sebi-registered investment adviser and founder, SahajMoney.com.
A married couple should keep their total EMIs within 35-40 per cent of net take-home income. “Buyers should also maintain an emergency fund covering 6-12 months of expenses, including EMIs, to avoid the risk of default,” says Kumar.
Investors face longer exit timelines
The premium segment (₹5-20 crore), where investor activity has been high, especially in markets such as Gurugram, Noida, Pune and Hyderabad, poses more risks. “Investors who entered during the 2024-25 upcycle may face longer exit timelines. They should also temper their return expectations,” says Chadha.
Risks could grow in case of prolonged market stagnation. “In that case, interest costs could erode the returns of leveraged investors,” says Chadha.
Investors should avoid overexposure to real estate and focus on diversification. “Those planning exits in 2026 should reset their price expectations, especially in areas with a lot of new supply,” says Chadha.
Those holding quality assets in strong micro-markets should stay patient and wait until they get a good exit.
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