India’s residential real estate market recorded strong value growth during FY26, with housing sales across the country’s top 75 cities rising 16 percent to Rs 9.33 lakh crore, even as the number of homes sold declined marginally by 1 percent year-on-year, according to the latest report released by Liases Foras Real Estate Rating & Research Pvt Ltd.
Key Highlights
- India’s housing sales value rose 16 percent to Rs 9.33 lakh crore despite flat volumes.
- New housing supply increased sharply, pushing unsold inventory to nearly 12 lakh units nationwide.
The report highlights a changing market dynamic where higher property prices and premium housing demand continue to drive transaction values, despite flat sales volumes and growing unsold inventory across several urban markets.
According to the research data, total housing sales stood at 7,09,793 units during FY26, compared to 7,19,029 units in FY25, reflecting a slight decline in unit sales. However, in value terms, total transactions surged to Rs 9,32,965 crore, signaling sustained buyer confidence in higher-ticket housing segments.
New Supply Surges 10%, Unsold Inventory Climbs to 12 Lakh Units
India’s developers launched 6,20,842 new residential units across 75 cities in FY26, registering a 10 percent increase in fresh supply compared to the previous fiscal year.
The sharp increase in launches, however, also pushed unsold inventory up by 13 percent to nearly 12 lakh units, suggesting that supply accumulation is gradually outpacing absorption in several markets.
Liases Foras noted in its report, “Housing sales across 75-plus cities remained largely flat despite broader economic concerns, while new supply rose significantly, increasing overall inventory levels.”
The firm’s data suggests that while India’s housing sector remains fundamentally strong, developers may need to recalibrate launches in certain micro-markets to avoid oversupply pressures.
MMR Leads National Sales, Bengaluru Strengthens Position
Among India’s top eight metropolitan markets, total housing sales edged lower to 5,07,850 units in FY26, compared to 5,09,211 units in FY25.
The Mumbai Metropolitan Region (MMR) remained India’s largest residential market, accounting for 23.7 percent of pan-India annual housing sales, while recording 4 percent year-on-year growth.
Bengaluru ranked second, capturing 9.9 percent market share, supported by continued demand from technology professionals and high-income buyers. However, Pune witnessed a sharp 25 percent decline in annual housing sales, despite maintaining the second-highest marketable housing supply among all metros.
Tier II and Tier III cities also experienced pressure, with sales falling 4 percent to 2,01,943 units, compared to 2,09,818 units in the previous fiscal year.
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Housing Prices Rise 3%, Premiumisation Drives Market Growth
The report noted that India’s housing price index increased 3 percent annually during FY26, reflecting continued premiumisation across major urban housing markets.
With nearly 18,000 real estate developers operating across the top 75 cities, the sector remains highly competitive. Analysts believe sustained price appreciation, improved infrastructure, and rising aspirational homeownership are supporting value growth even as unit sales plateau.
Industry experts suggest that India’s housing market is entering a more mature growth phase, where quality demand, premium inventory, and strategic pricing are becoming more important than sheer volume expansion.
As affordability pressures and supply accumulation continue to shape the sector, developers are expected to focus increasingly on premium offerings and location-driven differentiation to maintain momentum in FY27.
