India’s residential real estate sector is poised for a value-led expansion in FY26, with overall market value expected to grow by nearly 20 per cent despite stagnating sales volumes. The trend signals a fundamental shift from quantity to quality as premium housing segments, larger units, and sustainable developments redefine buyer priorities.
Data from property consultancy ANAROCK reveals that housing units sold across the top seven cities Mumbai Metropolitan Region (MMR), Delhi-NCR, Bengaluru, Pune, Hyderabad, Chennai, and Kolkata were collectively valued at ₹5.59 lakh crore in FY2025. The figure is projected to exceed ₹6.65 lakh crore in FY26, marking one of the sector’s strongest years since the pandemic.
While total sales volumes are likely to remain flat with growth of less than 4 per cent, experts say rising average ticket sizes and a tilt toward high-value homes are driving the jump in sales value. “The market has entered a phase where value growth is decoupled from volume. Homebuyers are prioritising premium quality, lifestyle, and long-term appreciation potential,” said a senior researcher at ANAROCK.
In the first half of FY26 alone, housing transactions worth ₹2.98 lakh crore were recorded already accounting for more than half of the previous fiscal’s total. Delhi-NCR and Chennai have emerged as the fastest-growing markets, achieving 74 per cent and 71 per cent respectively of their FY25 sales value within six months. In contrast, MMR India’s largest housing market saw moderate growth, completing only 45 per cent of its FY25 value.
Luxury and ultra-luxury housing have become the biggest drivers of this growth cycle. Properties priced above ₹1.5 crore now account for over 40 per cent of new launches, particularly in urban hubs like Gurugram, Hyderabad, and South Bengaluru. Developers are aligning with this demand by focusing on high-ticket projects, integrated townships, and sustainability-led amenities.
Industry leaders view this shift as a sign of market maturity. “The 20 per cent rise in value, despite steady volumes, reflects stronger buyer intent and confidence,” said a senior investment fund manager. “India’s housing story is now about value creation not just volume absorption.”Analysts also note that policy support for green housing and transit-oriented development could further reinforce this sustainable, value-driven trend. The combination of infrastructure growth, financial discipline among developers, and evolving buyer aspirations is pushing Indian real estate toward a more balanced, inclusive growth model.If FY2024 marked the phase of recovery and FY2025 of consolidation, FY2026 is shaping up to be the year of value transformation signalling a maturing market ready for long-term, sustainable expansion.
India Housing Market Value To Surge 20 Percent In FY26 Despite Flat Volumes
