CareEdge sees India realty resilient amid West Asia crisis

CARE ESG Ratings Limited published a report on August 19, 2026, assessing the impact of the West Asia crisis on India's real estate sector. The agency expects the sector to remain broadly resilient, with residential sales in top six cities staying around 3.55 lakh units in CY2026. Institutional investment reached $3.5-4 billion in H1 2026, the highest H1 inflow since the pandemic. Office leasing remains strong due to Global Capability Centre demand, with Grade A absorption estimated above 90 million sq ft. However, prolonged elevated crude prices could raise construction costs by 2-3%, pressuring affordable housing and highly leveraged developers. Premium and luxury housing remain resilient, supported by high-net-worth individuals and NRIs. Developers have stronger balance sheets, with debt-to-collections ratio of top 13 developers improving from 1.80x in FY20 to 0.68x in FY26. The report highlights uneven impact across segments, with affordable housing facing cost pressures while office and industrial segments benefit from structural growth. CareEdge notes that geopolitical uncertainty is more a near-term cost and caution risk than a broad-based demand disruption.