Record Spending on Housing Despite Decline in Home Sales in India
Indians bought fewer homes last yr but spent record ₹9.3 lakh cr on housing
Image: Business Standard
In FY26, India's housing market saw a slight decline in the number of homes sold, dropping to 709,793 units, while the total value of housing sales reached a record ₹9.33 lakh crore. The market is shifting towards larger, premium properties, with significant new supply and price appreciation across various segments.
- 01Housing sales across 75 major Indian cities fell by around 1% year-on-year to 709,793 units in FY26.
- 02Total housing sales value surged nearly 16% to ₹9.33 lakh crore, driven by a trend towards premium and larger homes.
- 03The Mumbai Metropolitan Region (MMR) accounted for approximately 23.7% of total housing sales, showing a 4% annual growth.
- 04New residential supply increased by 10% year-on-year, reaching 620,842 units, with a notable rise in unsold inventory by nearly 13%.
- 05The ₹1 crore to ₹1.5 crore segment saw the highest number of launches, indicating a shift towards premium housing.
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India's housing market is experiencing a paradoxical trend, where the volume of homes sold has slightly declined while the total value of sales has reached an unprecedented ₹9.33 lakh crore in FY26. According to a report by Liases Foras, the number of homes sold decreased by about 1% to 709,793 units, but the total sales value increased nearly 16%. This shift indicates a growing preference for larger and more luxurious properties, particularly in major cities like Gurgaon, Mumbai, and Bengaluru. The report highlights that new residential supply rose by 10% to 620,842 units, with unsold inventory climbing nearly 13% to around 12 lakh units. The MMR remains the dominant market, contributing 23.7% of total sales, while Pune faced a 25% decline in sales. Notably, the ₹1 crore to ₹1.5 crore price range emerged as the most significant segment for new launches, reflecting a broader trend towards premium housing. Despite economic concerns, the market shows resilience, with a diversification in supply targeting various buyer segments.
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The shift towards premium housing and increased supply may influence market dynamics and pricing strategies across various cities.
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