India’s housing market to grow richer, not bigger, as sales value set to rise 20% in FY26 while volumes stagnate

India's housing market is seeing a major shift, not in terms of more homes sold, but costlier ones. As sales volumes stagnate across the top seven cities, the total value of homes sold in FY26, driven by luxury and ultra-luxury home sales, may jump nearly 20% year-on-year to over ₹6.65 lakh crore, ANAROCK's data shows.

Looking at the sales data for the current fiscal year so far, the overall value of primary housing market sales is seen recording double-digit growth in the ongoing 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 ₹6.65 lakh Cr. In FY 2025, the total sales value in these cities was about ₹5.59 lakh cr, while sales volume stood at about 4,22,765 units,” says Prashant Thakur, Executive Director & Head – Research & Advisory, ANAROCK.

The data so far also paints a similar picture. Over 1.93 lakh units were sold in the top 7 cities in the H1 FY 2026, with the total sales value exceeding ₹2.98 lakh crore. This is already 53% of the total sales value clocked in entire FY2025 (₹5.59 lakh crore).

"After reaching a peak in overall absorption in FY2024, housing sales have tapered down amid various headwinds,” said Thakur. The volume and value story was similar in 2025 as well. The current fiscal year could also see double-digit sales value growth, even as sales volume could either stagnate or moderate growth not exceeding about 4%, he adds. “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 ₹5,59,290 crore – the highest since FY 2022.”

Luxury boom driving sales value momentum

The sales value momentum is largely driven by the high-ticket priced homes across cities as demand for luxury and ultra-luxury housing continues to outdo all other segments. Developers are backing this demand with increased new supply in these budget categories: ANAROCK data shows that 42% of the total new supply in H1 FY 2026 was in the luxury and

ultra-luxury categories combined. This has shot up the average residential prices across cites over the years, making home buying more expensive.

City-wise Trends:

In H1 FY2026, over 1.93 lakh homes were sold across the top 7 cities for a cumulative sale worth of ₹2,98,441 crore. City-wise, NCR and Chennai have outpaced other cities in H1 FY26 by already, respectively, achieving 74% and 71% of the overall sales value of FY2025, as per the ANAROCK data. MMR has achieved just 45% of the total sales value compared to FY25.

In NCR, 29,175 units worth ₹75,859 crore have been sold in H1 FY2026 while it saw 58,775 units worth ₹1,02,810 crore getting sold in FY25. Chennai saw total sales of 11,670 units in H1 FY26 worth ₹12,370 crore. In FY 2025, the total units sold stood at 17,765 units while total sales value recorded was ₹17,387 crore. Contrastingly, in MMR, 61,540 units have been sold in H1 FY2026 worth over ₹1 lakh crore, while back in FY 2025, it sold 1.44 lakh units worth ₹2,23,220 crore. Bengaluru, however, saw sales of around 29,955 units worth ₹43,627 crore in H1 FY26, while it sold 62,440 units worth ₹79,819 crore sold in FY25.

Similarly, Pune has sold 32,030 units in H1 FY2026 worth ₹30,324 crore, and in FY 2025, 74,200 units were sold, whose total sales value was ₹66,058 crore, the highest since FY 2022. Hyderabad witnessed total sales of around 22,345 units in H1 FY26 worth around ₹30,646 crore. In FY 2025, the total units sold stood at 48,980 units worth ₹59,243 crore. Kolkata's H1 FY26 tally stands at 7,655 worth ₹5,429 crore, but it sold 16,580 units worth ₹10,753 crore in the entire fiscal year.

Real estate is poised to sustain strong value growth: Industry

Robin Mangla, President of NCR-based luxury developer M3M India, said the Indian housing market is witnessing a structural shift from volume to value-led growth, backed by robust economic fundamentals, infrastructure growth, and rising disposable incomes. "This reflects the growing demand for luxury and ultra-luxury homes, which accounted for 42% of new supply in H1 FY26. Buyers today are seeking premium developments offering superior design, amenities, and brand assurance, rather than just space. Developers are aligning with this sentiment by launching curated, high-end projects across major cities."

Rajat Bokolia, CEO of Delhi-NCR based Newstone says the market is seeing sustained demand in the premium segment, driving up the average transaction size and ensuring price resilience. "The projected stagnation in sales volume, with unit growth not crossing 4% is a critical signal. It indicates that high interest rates and stable inventory are preventing broad -- based consumption."