India’s housing market has slowed in volume but expanded in value terms as buyers are spending more money than ever on homes.
While home sales across 75 major Indian cities slightly declined in FY26, the total value of housing sales reached a record Rs 9.33 lakh crore, according to a report by Business Standard citing data from Liases Foras, a real estate research and data analytics company.
The data indicates that buyers are increasingly choosing larger, more premium, and more expensive homes, while the supply of affordable housing has shrunk.
According to the report, housing sales across 75 cities fell around 1 percent year-on-year to 7,09,793 units in FY26, compared to 7,19,029 units in the previous year.
However, the total value of residential sales increased nearly 16 percent to Rs 9,32,965 crore. The report highlighted that India’s housing market is now being driven more by premiumisation than by growth in sales volumes.
Homebuyers in major cities are now purchasing larger apartments, luxury homes, and higher-priced properties, especially in markets such as Gurgaon, Mumbai, Bengaluru, Hyderabad, and the NCR region.
This trend has helped developers maintain strong growth in sales value even though actual transaction volumes have started stabilising after the post-pandemic housing boom.
At the same time, developers are launching projects aggressively.
New residential supply across the 75 cities increased around 10 percent year-on-year to 6,20,842 units in FY26. The rise in launches pushed unsold housing inventory up by nearly 13 percent to around 12 lakh units across the country.
Liases Foras said housing sales have remained “largely flat despite economic concerns,” while supply additions have grown sharply.
Out of 17,680 developers active across India in FY26, 59 mega-large developers contributed 18 percent of the total residential supply launched nationwide.
In comparison, small developers, who account for nearly 71 percent of active developers, contributed 29 percent, or 1,81,033 units, of the country’s new residential supply.
According to some experts, this is a concerning trend, where luxury housing is seeing steady demand while affordable housing options are becoming less lucrative for builders.
