India’s housing market is entering a new phase, with fewer homes being sold but at significantly higher values, reflecting a decisive shift toward luxury and premium housing. According to a new ANAROCK Group report titled “Home Sales Value in FY26 May Grow ~20% Y-o-Y, Sale Volume to Stagnate,” the combined sales value across the top seven cities could rise nearly 20% year-on-year in FY26 to ₹6.65 lakh crore, even as overall unit sales remain flat.
In FY25, around 4.22 lakh homes were sold across these cities, generating a total value of ₹5.59 lakh crore. The expected jump in FY26 is being driven by rising prices, larger home sizes, and strong demand in high-end segments. During the first half of FY26 (April–September 2025) alone, over 1.93 lakh homes worth ₹2.98 lakh crore were sold — already 53% of FY25’s total sales value.
Anuj Puri, Chairman of ANAROCK Group, described this as a shift toward value-led growth in Indian real estate. He said demand in the premium and luxury segments continues to remain strong, even as affordable housing slows due to high property prices and borrowing costs. Developers are aligning their launches to this new demand reality.
Puri noted that the rise in sales value is being fueled by higher home prices, a surge in big-ticket purchases, and stable domestic demand. He added that luxury and upper mid-segment homes now account for a much larger share of overall sales, as buyers today prefer bigger homes, better amenities, and premium living standards.
Data from ANAROCK shows that 42% of all new housing supply in H1 FY26 came from luxury and ultra-luxury projects, underscoring how developers are focusing on the high-margin segment. Even though sales volumes dropped 14% in FY25, the total value rose 6%, the fastest growth since FY22.
Dr. Prashant Thakur, Executive Director and Head of Research at ANAROCK, said that after peaking in FY2024, housing sales volumes have tapered amid affordability challenges. However, the overall sales value continues to rise, pointing to potential double-digit growth by the end of this fiscal, even as volumes stagnate.
The demand for premium housing is being driven by affluent buyers, NRIs, and professionals seeking spacious, high-quality homes in post-pandemic India. Developers, supported by robust liquidity and changing consumer aspirations, are focusing on prime urban markets where luxury housing margins are higher.
The performance varies across cities, with NCR and Chennai leading in value growth, while Mumbai and Pune show slower momentum. NCR saw 29,175 homes sold worth ₹75,859 crore, while Chennai recorded 11,670 homes worth ₹12,370 crore. In MMR (Mumbai), 61,540 homes worth ₹1 lakh crore were sold, while Bengaluru, Pune, Hyderabad, and Kolkata collectively contributed significant shares to the overall market value.
According to Puri, this marks a structural evolution in India’s property market — from a volume-driven to a value-driven model. Developers are now prioritising quality, positioning, and lifestyle appeal over mass-scale launches.
While mid-income and affordable housing are slowing due to rising costs, the upper-end segment continues to thrive, supported by stable interest rates and higher disposable incomes. However, ANAROCK cautioned that price-sensitive buyers are being priced out, and long-term sustainability will depend on how the market addresses this affordability gap.
“India’s housing market is selling less but earning more,” Puri concluded. “It reflects the changing aspirations of homebuyers and their growing confidence in real estate as a long-term, value-driven investment.”
