India’s residential market is showing a notable shift from volume-led growth to value-led expansion. Recent industry research projects that total housing sales value across major cities will exceed ₹6.65 lakh crore in FY26, roughly a 19% year-on-year increase, even as unit sales remain broadly flat — a pattern driven largely by rising prices and a surge in premium / luxury purchases.
What’s behind the jump in sales value
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Premiumisation of demand. Buyers are increasingly gravitating toward higher-ticket products — apartments priced above ₹1 crore and branded/ultra-luxury residences — lifting overall realizations even when the number of units sold doesn’t rise materially. Industry trackers reported that premium homes accounted for a growing share of sales in 2024 and continue to lead demand in 2025.
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Branded and luxury projects gaining traction. Developers are launching and selling more branded residences and ultra-premium projects, which command a significant price premium. Market intelligence shows India’s branded-residence pipeline and premium launches have expanded, helping explain why value is rising faster than volumes. The Economic Times+1
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Strong sales from marquee launches. Big-ticket project launches and blockbuster sales from leading developers have contributed disproportionately to value growth — for example, record bookings at several luxury projects demonstrate that a relatively small number of high-value transactions can move aggregate revenues sharply.
City-wise drivers and hotspots
While the lift is broad-based across India’s top residential markets, metros such as Mumbai, NCR, Chennai, Bengaluru and Pune are important contributors — Mumbai and NCR in particular are seeing strong luxury demand and a concentration of premium launches. These city-level dynamics (infrastructure-led demand, corporate hiring, and HNI concentration) amplify the value impact of each luxury sale.
Market implications
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Developers: Can prioritise premium, branded launches and tailor product mixes (larger units, luxury fittings, concierge services) to capture higher realizations. Well-timed high-end launches improve margins and cash flows.
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Investors / HNIs: Luxury real estate remains an attractive store of wealth and portfolio diversifier, especially where supply of genuine branded/ultra-luxury stock is limited.
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Affordable/ mid-segment pressure: Policymakers and developers should monitor affordability and supply — because when value growth outpaces income growth, it risks widening the affordability gap.
Risks & caveats
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Interest-rate sensitivity: Any significant rise in mortgage rates could temper housing demand broadly and reduce leverage for mid-end buyers.
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Concentration risk: Value growth concentrated in a few expensive projects or cities may not reflect broader housing affordability or health.
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Macro / policy shocks: Slower economic growth, tighter credit or policy shifts (taxation, stamp duty changes) could moderate optimism.
Bottom line
The projected ₹6.65 lakh crore in housing sales value for FY26 — a ~19% uplift — signals a maturing, premiumised market where fewer, higher-value transactions are reshaping industry economics. For developers, investors and advisors, the near term is likely to reward well-executed luxury and branded offerings, while calling for continued attention to affordability and geographic diversification.
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