Affluent homebuyers sustain market while affordable housing demand significantly lags.
By B N Kumar
Mumbai, Nov 13 (The CONNECT) – Despite global economic uncertainty, elevated input costs and geopolitical tensions, India’s primary housing market continues to demonstrate strong value momentum. New ANAROCK Research data indicates that while sales volumes across the top seven cities are stabilising after the post-pandemic surge, the total value of homes sold is set to rise in double digits this fiscal.
“Our research shows that the overall housing sales value in FY26 may see over 19% Y-o-Y growth across the top 7 cities to exceed INR 6.65 lakh Cr. In FY 2025, the total sales value in these cities was about INR 5.59 lakh Cr, while sales volume stood at about 4,22,765 units,” says Dr. Prashant Thakur, Executive Director & Head – Research & Advisory, ANAROCK Group.
In the first half of FY26 alone, more than 1.93 lakh housing units were sold across these cities, translating into a cumulative sales value of over INR 2.98 lakh crore. This already accounts for 53% of the total market value recorded in the whole of FY25, indicating sustained momentum in value-driven sales.
“After reaching a peak in overall absorption in FY2024, housing sales have tapered down amid various headwinds,” said Dr. Thakur. “However, the sales value of the total homes sold is growing. While sales volume plummeted by 14% y-o-y in FY 2025, the sales value jumped up 6% to INR 5,59,290 Cr – the highest since FY 2022. The current trends indicate potential double-digit sales value growth by the end of the ongoing fiscal, even as sales volume either stagnates or sees moderate growth not exceeding about 4%.”
This divergence between volume and value is being driven by continuing appetite for premium and luxury housing. Higher-end projects have seen outsized demand, supported by rising disposable incomes in new economy sectors, a preference for larger homes, and the lifestyle shift accelerated during the pandemic years. Developers have responded accordingly: 42% of all new launches in H1 FY26 were in the luxury and ultra-luxury price brackets. Concurrently, average residential prices across major urban markets have risen steadily, further amplifying market value growth.
However, this surge in premium housing has also highlighted the ongoing slowdown in the affordable segment. Over the last two years, the share of new launches priced below ₹40 lakh has continued to shrink in most major cities. Rising land and construction costs and reduced subsidy-driven incentives have made budget projects increasingly challenging to deliver. Many lower and mid-income buyers are also deferring purchases due to higher EMIs and stretched household budgets. As a result, affordable housing continues to lag even as overall market value rises.
City shorts:
In H1 FY26, approximately 1.93 lakh units were sold across the top seven cities, with total sales value touching ~INR 2,98,441 crore. Performance varied significantly across regions depending on price base, inventory profile and buyer mix:
- NCR sold ~29,175 units worth INR 75,859 crore, already achieving 74% of its FY25 sales value.
- Chennai sold ~11,670 units worth INR 12,370 crore, touching 71% of its FY25 sales value.
- MMR (Mumbai Metropolitan Region) sold ~61,540 units worth over INR 1 lakh crore, reflecting 45% of FY25’s value due to high base effect.
- Bengaluru sold ~29,955 units worth INR 43,627 crore, crossing 55% of its FY25 sale value.
- Pune sold ~32,030 units worth INR 30,324 crore, reaching nearly 46% of FY25 levels.
- Hyderabad sold ~22,345 units worth INR 30,646 crore, amounting to 52% of last fiscal’s market value.
- Kolkata sold ~7,655 units worth INR 5,429 crore, registering about 50% of FY25’s sales value.
The broader picture that emerges: sales velocity has moderated, but market value continues to rise, supported largely by the premium end of the market.
