India Housing Market To Cross ₹6.65 Lakh Crore In FY26 Driven By Luxury

India’s housing market is poised to cross ₹6.65 lakh crore in value by FY26, fuelled by rising demand for luxury and premium homes across major cities, according to a new report by real estate consultancy Anarock. The study indicates that robust price growth and an expanding share of high-end housing are driving this upward trend, even as overall sales volumes begin to stabilise.

During the first half of FY26, housing sales across India’s top seven cities  Mumbai Metropolitan Region, Delhi-NCR, Bengaluru, Pune, Hyderabad, Chennai, and Kolkata  reached a cumulative value of nearly ₹2.98 lakh crore, representing a 7% increase over the same period last year. Approximately 1.93 lakh residential units were sold between April and September, compared to 2.27 lakh units worth ₹2.79 lakh crore a year ago.Experts attribute this divergence between sales value and volume to the sustained rise in average property prices and the growing share of luxury and upper-mid segment housing, particularly in metros such as Mumbai and Hyderabad. These markets have witnessed steady demand from end-users, Non-Resident Indians (NRIs), and investors seeking long-term value preservation.

Anarock’s analysis forecasts a 19% year-on-year growth in overall housing sales value for FY26, taking the total beyond ₹6.65 lakh crore, up from ₹5.59 lakh crore in FY25. The consultancy noted that while transaction volumes have plateaued after a record FY24, the value growth demonstrates a qualitative shift in buyer preference towards larger homes with enhanced amenities, sustainability features, and better connectivity.Unlike speculative cycles of the past, the current housing momentum is end-user driven and grounded in affordability as well as lifestyle aspirations,” said a senior property consultant. “Developers are aligning new launches to this trend, focusing on efficient design and environmentally responsible construction.

Hyderabad, in particular, continues to stand out for its infrastructure expansion and balanced price appreciation, positioning it as one of India’s most dynamic housing markets. Similarly, Mumbai and Bengaluru have reported strong uptake in redeveloped and high-rise luxury projects supported by robust financing and improved consumer sentiment.Industry analysts note that as cities densify, India’s housing trajectory will increasingly hinge on sustainable urban planning combining vertical development, inclusive community design, and energy-efficient housing. These measures not only sustain long-term real estate growth but also align with India’s broader goal of building resilient and equitable cities.

India Housing Market To Cross ₹6.65 Lakh Crore In FY26 Driven By Luxury