If you are dreaming of building your own house and are thinking that the prices may come down in the coming time, then this news may force you to reconsider your plan. Latest signals from the real estate market are showing that waiting can be very heavy on your pocket. Major real estate developers of the country believe that house prices are not going to stop in the year 2026, rather there is going to be a huge rise in them.
A recent report by CREDAI and CRE Matrix has increased the concern of home buyers. According to this report, it is meaningless to expect a recession in the market at the moment because most of the developers are confident about the increase in prices.
Will 2026 be heavy on your pocket?
The data of this survey shows what is the mood of the real estate sector. A very clear picture has emerged in this survey conducted on about 647 participants in the months of November and December. 68 percent developers have made it clear that house prices will increase by more than 5 percent in 2026.
But this is not the only thing to worry about. If we go deeper into the data, we find that one percent of developers believe that this increase could be more than 25 percent. At the same time, 18 percent of the respondents say that the prices will increase by 10 to 15 percent. This may be a shock for those who were expecting relief, because only 8 percent of the developers feel that the prices may fall. That means, the chances of getting a cheap house are negligible.
There are real buyers in the market, not speculators.
It is often believed that property prices increase only due to investors or speculation, but this time the matter is different. Developers say that the demand seen in the market is from people who actually want to live in the house. This is called ‘end-user’ demand.
The report shows that almost two-thirds of developers expect the demand for homes to increase by more than 5 percent in the coming year. When demand comes from genuine buyers, there is less scope for prices to fall because it is not an artificial rally. This continued interest of buyers is the main reason for the confidence of the developers.
Techniques and rules of the game
Not only the demand but also the cost and process of construction is a big reason behind the rising prices. According to Shekhar G Patel, Chairman of CREDAI, this sector is now becoming more organized than before. Developers are now adopting new technology to speed up work and increase quality, but this also has a direct impact on cost.
Patel also said that if projects are approved quickly by the government and there is clarity in the rules, then it will help in supply. He believes that with the simplified approval process, not only will the projects be completed on time, but urban development will also take place in a balanced manner.
Real estate sector is focusing on long term value creation
Analysis by CRE Matrix and IndexTap CEO Abhishek Kiran Gupta suggests that the real estate sector is now focusing on ‘long term value creation’. This simply means that developers are increasing the supply in a disciplined manner and are not launching projects indiscriminately. When supply remains under control and demand increases, prices are sure to go up.
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