India’s top metropolitan housing markets are witnessing a notable shift, as high-end residential properties fuel a surge in primary market sales values, projected to exceed Rs 6.65 lakh crore in FY26. Analysts attribute this growth largely to sustained demand for luxury and ultra luxury homes, even as overall unit sales remain moderate.
A recent report by a leading real estate advisory firm highlights that more than 1.93 lakh units were sold across the seven major cities during the first half of FY26 (April–September), signalling a stabilisation of sales volumes despite broader economic and geopolitical uncertainties. However, the bulk of the growth in value is being driven by premium homes, underscoring a preference for quality over quantity among urban buyers. Cumulative sales in H1 FY26 already reached Rs 2.98 lakh crore, accounting for 53 per cent of FY25’s total of Rs 5.59 lakh crore.
“While unit volumes have moderated, the rising ticket size of transactions is boosting overall market value,” said a senior industry expert. “This trend reflects a maturing urban housing market where luxury homes increasingly dominate the sales landscape.” The report also noted that, following the absorption peak in FY24, housing demand had slowed in FY25 due to affordability constraints and market caution. Current indicators suggest potential double-digit growth in total sales value by the end of FY26, even if overall transaction volumes remain flat or increase moderately by up to 4 per cent.
City-wise performance reveals contrasting dynamics. The National Capital Region (NCR) and Chennai have emerged as leaders in value growth, achieving 74 per cent and 71 per cent of their FY25 sales values, respectively. Meanwhile, the Mumbai Metropolitan Region (MMR) has registered a more subdued 45 per cent of its previous fiscal’s total, reflecting tighter supply and higher pricing pressures in the city’s luxury segment.
Urban planners and housing analysts point to the broader significance of this trend. The focus on premium housing underscores the need for integrating sustainable and inclusive urban development practices in high-value residential projects. Energy-efficient construction, equitable access to housing, and climate-resilient design are becoming central considerations for developers seeking to align with India’s net-zero and sustainable city goals.As luxury homes continue to shape the property market, industry observers emphasise that policymakers and developers must balance premium growth with inclusive urban planning, ensuring that high-value sales translate into broader benefits for sustainable and equitable city living.
NCR Luxury Housing Surges FY26 Sales Value Crosses Rs Six Lakh Crore
