India’s real estate market is defying conventional norms by witnessing a surge in total sales value despite a slowdown in the number of homes sold. ANAROCK Group’s latest data indicates that the top seven cities in the country could experience a significant increase of almost 20% in home sales value to surpass Rs 6.65 lakh crore in FY26, while the volume of units sold is expected to remain steady.
The report titled “Home Sales Value in FY26 May Grow ~20% Y-o-Y, Sale Volume to Stagnate” highlights a shift in India’s housing landscape, with luxury and premium properties driving the market dynamics as demand for affordable housing decelerates.
In FY25, approximately 4.22 lakh homes were sold in the top seven cities, amounting to a total sales value of Rs 5.59 lakh crore. ANAROCK projects this figure to increase to Rs 6.65 lakh crore in FY26, primarily fueled by escalating prices and the preference for larger, more upscale residences.
During the initial six months of FY26 (April–September 2025), over 1.93 lakh homes valued at Rs 2.98 lakh crore were sold, representing 53% of the total sales value recorded in FY25. Anuj Puri, Chairman of ANAROCK Group, attributed this transformation to a value-oriented growth in India’s real estate market, with robust demand in the high-end segments outweighing the slowdown in affordable housing due to soaring property costs and borrowing expenses.
Puri emphasized that the upsurge in housing sales value stems from surging property prices, an increase in high-value transactions, and consistent domestic demand. The preference for larger homes, superior amenities, and enhanced living environments among buyers has led luxury and upper mid-segment properties to dominate the market.
Luxury and ultra-luxury projects accounted for 42% of the new housing supply in the first half of FY26, as per ANAROCK data. Despite a 14% decline in overall sales volume in FY25, the total sales value surged by 6%, marking the highest growth rate since FY22.
Dr. Prashant Thakur, Executive Director and Head of Research at ANAROCK, pointed out that after peaking in absorption levels in FY2024, housing sales have tapered off amid various challenges. However, the sales value of total homes sold continues to rise, indicating a potential double-digit growth in value by the end of the fiscal year, even as volumes plateau.
The demand for premium residences is being propelled by affluent buyers, NRIs, and professionals seeking more spacious living areas post-pandemic. Developers are responding by concentrating on high-margin projects in prime urban locales, supported by robust domestic liquidity and evolving lifestyle preferences.
City-wise sales performance in H1 FY26 showcases varying trends, with the National Capital Region (NCR) and Chennai leading in value growth, while Mumbai and Pune exhibit slower momentum. Anuj Puri noted that this shift signifies a fundamental change in India’s real estate sector, emphasizing a shift from quantity-driven to quality-driven approaches by developers, reshaping real estate perceptions as an investment avenue.
While mid-income and affordable segments face slowdowns due to affordability constraints, developers perceive a long-term potential in the high-end market. Rising disposable incomes, urban migration, and stable interest rates are sustaining the demand for premium housing.
ANAROCK anticipates that India’s residential market will continue following a “high-value, low-volume” trajectory throughout FY26, reflecting homebuyers’ inclination towards lifestyle enhancements and superior living standards, even at the expense of reduced transaction volumes.
Nevertheless, the consultancy warns that price-sensitive buyers are increasingly being priced out, highlighting the necessity for developers and policymakers to address the affordability gap to sustain growth. Anuj Puri summed up the market scenario by noting that while India’s housing market is witnessing fewer transactions, it is generating higher revenues, portraying evolving aspirations and the enduring confidence of Indian homebuyers in the enduring value of real estate.