Mumbai Real Estate Growth Slows As Luxury Housing Dominates India Market Rise

India’s residential real estate sector is on track for a record-breaking year, with housing sales value across major cities projected to exceed ₹6.65 lakh crore in FY26  a year-on-year increase of nearly 19 per cent. The growth, experts note, is being fuelled primarily by sustained demand in the luxury and ultra-luxury housing segments.

According to recent market estimates, around 1.93 lakh housing units were sold across the country’s top seven metropolitan regions during the first half of FY26 (April–September). Despite geopolitical uncertainty and inflationary pressures, sales volumes have stabilised, suggesting a strong undercurrent of buyer confidence in India’s housing market.Analysts attribute the uptrend largely to an appetite for high-value properties in urban centres such as Delhi-NCR, Chennai, and Mumbai. In monetary terms, the cumulative housing sales value during H1 FY26 touched nearly ₹2.98 lakh crore  already 53 per cent of the total value recorded in FY25.

Industry experts observe that while the number of units sold has slowed marginally since the record absorption in FY24, the overall market value continues to rise. “The volume of homes sold may have dipped, but the sales value is climbing steadily  indicating a shift towards premium housing,” said a senior executive at a leading property consultancy.The data shows that the National Capital Region (NCR) and Chennai have been the standout performers this fiscal, achieving 74 per cent and 71 per cent, respectively, of their previous year’s total sales value in just six months. Mumbai Metropolitan Region (MMR), the country’s largest housing market by value, has achieved around 45 per cent of its FY25 tally, reflecting continued resilience amid rising property prices.

Experts suggest that the evolving buyer profile  driven by higher disposable incomes, NRI investments, and lifestyle aspirations  has played a key role in sustaining growth despite global headwinds. The sector’s long-term health, however, will depend on maintaining affordability and expanding access to green and inclusive housing options.As India’s urbanisation deepens, policymakers are also being urged to align real estate growth with sustainability goals. Integrating climate-resilient design, energy efficiency, and equitable access to housing could ensure that the next wave of real estate expansion contributes not only to GDP, but also to India’s vision of zero-carbon, liveable cities.

Mumbai Real Estate Growth Slows As Luxury Housing Dominates India Market Rise