If you're planning to buy a home, hurry up! Prices will rise more than expected in 2026, a report that has raised concerns
If you're planning to buy a home, delaying now could prove costly. According to the latest CREDAI report, home prices are expected to rise by more than 5% by 2026. 68% of developers believe there's strong demand from genuine buyers, which will only drive prices higher.
If you've been dreaming of building your own home and are hoping prices might come down in the future, this news may force you to reconsider your plans.
Recent signs from the real estate market suggest that waiting could be very costly. Leading real estate developers believe that home prices won't slow down in 2026, but rather, they're set to surge significantly.
A recent report from CREDAI and CRE Matrix has raised concerns among homebuyers. According to the report, expecting a slowdown in the market is currently unfounded, as most developers are confident of price increases.
Will 2026 be heavy on your pocket?
The data from this survey reveals the mood of the real estate sector. The survey, conducted among approximately 647 participants in November and December, reveals a clear picture. 68 percent of developers have stated that home prices will rise by more than 5 percent in 2026.
But that's not all there is to worry about. A deeper dive into the data reveals that 1% of developers believe the price hike could exceed 25%. Meanwhile, 18% of respondents expect prices to rise by 10% to 15%.
This could be a setback for those hoping for relief, as only 8% of developers believe prices will fall. This means the chances of finding affordable housing are slim to none.
There are real buyers in the market, not speculators.
It's often assumed that property prices rise solely due to investors or speculation, but this time the situation is different. Developers say the demand being seen in the market is from people who actually want to live in the home. This is called "end-user" demand.
The report states that nearly two-thirds of developers expect housing demand to increase by more than 5 percent in the coming year.
When demand comes from genuine buyers, there's less room for prices to fall because it's not artificially inflated. This continued interest from buyers is a key reason for developers' confidence.
Technique and rules of the game
The rising prices are not just driven by demand, but also by construction costs and processes. According to Shekhar G. Patel, President of CREDAI, the sector is becoming more organized than ever before. Developers are adopting new technologies to speed up work and improve quality, but this also directly impacts costs.
Patel also said that faster government approvals and clarity in regulations will help supply chains. He believes that a simplified approval process will not only ensure timely project completion but also ensure balanced urban development.
Real estate sector is focusing on long term value creation
Analysis by Abhishek Kiran Gupta, CEO of CRE Matrix and IndexTap, suggests that the real estate sector is now focusing on "long-term value creation."
This simply means that developers are increasing supply in a disciplined manner, not launching projects recklessly. When supply is under control and demand increases, prices are bound to rise.