The year 2026 will see real estate developers in India shifting their focus back to building mid-segment homes priced between Rs 1.5 crore and Rs 2 crore, as luxury home sales are not expected to drive volumes over the long term, according to a top executive of Bengaluru-based Prestige Group.
“At Prestige, we will be planning a lot more launches in the mid-segment – Rs 1.5 crore -Rs 3 crore segment. The bulk of our launches are going to be there. The overall market will also move in that direction,” says Praveer Shrivastava, Senior Executive VP, Residential, Prestige Group.
“Luxury is always a niche market. Once you have reached a stage where more supply is happening in luxury, the volumes will not come for any developer if we continue to supply the luxury market. Therefore, for volumes and resultant sales value, people will have to move back to the mid-segment,” Shrivastava says, adding, “it’s a cycle.”
Over the last couple of years, developers, buoyed by the overall momentum in housing sales, have veered towards larger homes of 2,000-6,000 square feet. However, most customers reside in the ticket size of Rs2-3 crore, says Shrivastava. “In 2026, a majority of our products are going to be in the 1500-2200 sq. ft. dimensions.”
“While the pricing per square foot has gone up by 60% over the last four years, the areas have also moved up. To make sure you stay in that bracket of Rs 1.5-3 crore, the area will need to be optimised. Therefore, 1500-2000 sq ft is the optimum area that can be done in a ticket size of ₹1.5-3 crore. This ticket size is where the bulk of the customers is. We have to design our product around that.”
Shrivastava says the company is on track to achieve, or perhaps surpass, the guidance of ₹25,000 crore-₹27,000 crore for the ongoing fiscal. “In the first half of FY26, we have already done ₹18,000 crore of sales. Out of Rs 18,000 crore we have done in H1, Rs 8,500 crore is out of our foray into the Delhi-NCR market with Prestige City Indirapuram. This was our first project, which was lapped up by the market.”
The Bengaluru-based developer is looking to enter the Gurugram and Noida markets in NCR (National Capital Region) as well. “We are aggressively looking for options to develop in Gurgaon. Hopefully, in this calendar year, you will see us in both Gurugram and Noida markets. In Noida Sector 150, we already have a land parcel which is awaiting clearance.”
“Top metros will continue to have good absorption, provided sensible pricing and products come in,” he says.
