India's housing market has experienced a notable shift as it reports record sales figures while witnessing a slight decline in transaction volumes. According to a recent report by Business Standard, which references comprehensive data from Liases Foras, the total value of residential sales in 75 major cities reached an unprecedented ₹9.33 lakh crore in the fiscal year 2026 (FY26). This marks a significant rise of nearly 16 percent compared to the previous year, indicating that buyers are increasingly willing to invest more in their home purchases.
Despite the surge in sales value, the actual number of homes sold has seen a decrease. Sales across the 75 cities fell approximately 1 percent year-on-year to 709,793 units, down from 719,029 units in FY25. This paradox highlights a growing trend where homebuyers are opting for larger, premium properties rather than affordable housing options, which have seen a decline in availability. Major urban centers, including Gurgaon, Mumbai, Bengaluru, Hyderabad, and the National Capital Region (NCR), have become hotspots for luxury home purchases, reflecting a shift towards higher-priced living spaces.
Developers are responding to this changing landscape by aggressively launching new residential projects. The supply of new residential units across the 75 cities rose by about 10 percent year-on-year, totaling 620,842 units in FY26. However, this uptick in new launches has resulted in an increase in unsold inventory, which climbed nearly 13 percent to around 1.2 million units nationwide. This situation raises concerns among experts, who point out that while the luxury segment remains robust, the affordable housing market is becoming less appealing for developers, potentially leading to an imbalance in the housing market.
The data indicates that out of 17,680 developers active in the Indian market in FY26, only 59 mega-developers accounted for 18 percent of the total residential supply. In contrast, the majority of small developers, who make up approximately 71 percent of the market, contributed just 29 percent of the new residential units. This concentration of supply among larger developers suggests a potential risk for the market, as the demand for affordable housing continues to wane. Overall, while the Indian housing market showcases impressive sales value figures, the decline in transaction volumes and the shrinking supply of affordable homes pose significant challenges that warrant close observation in the coming years.