Luxury demand drives value growth as affordability tightens in key markets
India’s housing market may touch a record ₹6.65 lakh crore in total sales value by the end of FY26 — but the number of homes sold may barely rise, according to fresh data from ANAROCK Research & Advisory.
The report points to a sharp disconnect between rising sales values and stagnant volumes, as luxury and high-ticket homes dominate demand in major cities.
Sales Value Soars, Volume Stalls
In FY25, the top seven cities collectively sold 4.22 lakh housing units worth ₹5.59 lakh crore — a 6% jump in value despite a 14% drop in sales volume.
For FY26, ANAROCK estimates that overall housing sales value will grow nearly 20% year-on-year, surpassing ₹6.65 lakh crore, while unit sales may grow no more than 4%.
“After peaking in FY24, overall absorption has slowed amid global and domestic headwinds,” said Dr. Prashant Thakur, Executive Director and Head of Research at ANAROCK.
“However, the total value of homes sold continues to climb as buyers shift to premium and luxury segments.”
Half-Year Numbers Already Cross 50% of FY25 Levels
During H1 FY26, over 1.93 lakh units were sold across the top seven cities for a combined ₹2.98 lakh crore, already 53% of FY25’s total sales value.
City performance varied sharply:
- NCR achieved 74% of its FY25 sales value in just six months.
- Chennai followed at 71%, while MMR lagged at 45% of last year’s total.
City-Wise Breakdown: Sharp Contrasts
- NCR: ~29,175 units sold in H1 FY26 worth ₹75,859 crore, compared to FY25’s 58,775 units (₹1,02,810 crore).
- Chennai: ~11,670 units sold worth ₹12,370 crore (FY25: 17,765 units, ₹17,387 crore).
- MMR (Mumbai Metropolitan Region): ~61,540 units sold worth ₹1,00,000+ crore (FY25: 1.44 lakh units, ₹2,23,220 crore).
- Bengaluru: ~29,955 units sold worth ₹43,627 crore (FY25: 62,440 units, ₹79,819 crore).
- Pune: ~32,030 units sold worth ₹30,324 crore (FY25: 74,200 units, ₹66,058 crore).
- Hyderabad: ~22,345 units sold worth ₹30,646 crore (FY25: 48,980 units, ₹59,243 crore).
- Kolkata: ~7,655 units sold worth ₹5,429 crore (FY25: 16,580 units, ₹10,753 crore).
Luxury Segment Leads the Charge
Nearly 42% of all new housing supply in H1 FY26 was in the luxury and ultra-luxury segments, ANAROCK data shows.
The steady appetite for premium homes — especially among high-income end-users and NRIs — has offset the slowdown in mid- and affordable housing categories.
“Luxury continues to drive value growth, while affordability challenges have limited momentum in the lower segments,” Dr. Thakur noted.
Average residential prices across cities have risen sharply, adding further pressure on first-time homebuyers.
Market Outlook
ANAROCK projects that the full-year FY26 performance will reflect a “value-led growth” cycle rather than volume-led expansion.
While housing demand remains healthy, the mix is shifting — fewer homes are being sold, but at much higher ticket sizes.
Also Read: Housing Sales Plummet by 28% in Q1 2025 Across India’s Top 7 Cities
