India’s housing market is poised for a strong value-driven upswing in FY26, led by robust performance in the National Capital Region (NCR) and Chennai. According to a recent ANAROCK Group report, the overall value of homes sold across the top seven cities is expected to rise by nearly 19% to ₹6.65 lakh crore in FY26, compared to ₹5.59 lakh crore in FY25.
The surge in value is primarily attributed to growing demand for premium and luxury housing, even as overall unit sales are expected to remain relatively flat. During FY25, around 4.22 lakh homes were sold across major cities, and that figure is projected to increase marginally by about 4% in FY26. Despite this limited rise in volume, the higher ticket sizes of premium homes are pushing up total sales value.
In the first half of FY26 alone, home sales worth ₹2.98 lakh crore were recorded — already about 53% of the total FY25 value. Among all markets, NCR and Chennai have emerged as top performers, achieving around 74% and 71% respectively of their previous year’s total value within the first six months. In contrast, the Mumbai Metropolitan Region (MMR) reached about 45% of its FY25 figure during the same period.
Experts suggest that this trend highlights a fundamental shift in India’s residential market — from volume growth to value growth. Rising land and construction costs, coupled with a steady appetite for larger, better-designed homes, have driven the premium segment to the forefront. Luxury homes now account for nearly 42% of new supply across the top cities in the first half of FY26.
As FY26 progresses, NCR and Chennai are expected to maintain their lead, reflecting a wider trend where affordability constraints and lifestyle preferences are steering buyers toward high-value properties. The Indian housing market is, therefore, set to grow richer rather than larger in the coming year.
Also read: Prestige Group Utilises ₹4,579 Crore from QIP for Expansion
