India’s residential real estate market is set for a strong rise in overall value, driven largely by the luxury housing segment. According to Anarock Group, the total housing sales value across the top seven cities is projected to reach ₹6.65 lakh crore in FY26, marking a 19% year-on-year growth. However, the number of housing units sold may remain stagnant, with limited volume growth expected.
In FY25, the total value of homes sold stood at approximately ₹5.59 lakh crore, with around 4.23 lakh units sold across major cities. In the first half of FY26 alone, over 1.93 lakh units were sold, generating about ₹2.98 lakh crore in value—already crossing 50% of the previous year’s total.
The rise in sales value is primarily driven by luxury and ultra-luxury housing, reflecting strong demand from affluent buyers and a growing preference for high-end projects. Developers are responding with increased supply in this segment. In H1 FY26, nearly 42% of new residential launches in the top seven cities belonged to the luxury or ultra-luxury category, highlighting the shift in market dynamics.
Anarock’s report also noted significant price appreciation across most urban markets, contributing to the higher overall sales value even without an increase in unit sales. The average ticket size of homes has gone up considerably due to premium project launches and rising input costs.
City-wise, the National Capital Region (NCR) and Chennai are leading the momentum, with luxury housing accounting for approximately 74% and 71%, respectively, of their total projected FY26 sales value. The Mumbai Metropolitan Region (MMR) follows with about 45% share, while Bengaluru, Pune, and Hyderabad continue to attract steady demand in the upper mid-range and premium categories.
Overall, while India’s real estate sector is poised for a notable 19% value growth in FY26, the focus clearly remains on luxury housing. The strong performance of this segment is expected to sustain momentum in the market, even as total sales volumes stabilize.
Also read: Prestige Hospitality Ventures Files ₹2,700 Crore IPO Draft with SEBI
