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Indians bought fewer homes last yr but spent record ₹9.3 lakh cr on housing | Personal Finance



India’s housing market may be slowing in volume, but buyers are spending more money than ever before on homes. A new report by Liases Foras shows that while the number of homes sold across 75 major Indian cities dipped marginally in FY26, the total value of housing sales surged to a record ₹9.33 lakh crore, reflecting India’s continuing shift toward bigger, more premium and more expensive homes.

 


According to the report, housing sales across 75 cities fell around 1% year-on-year to 7,09,793 units during FY26, compared to 7,19,029 units in the previous year. But despite the slight decline in the number of homes sold, the total value of residential sales jumped nearly 16% to ₹9,32,965 crore.

 
 


The data highlights how India’s residential market is increasingly being driven by premiumisation rather than sheer volume growth.

 


Homebuyers across major cities are now purchasing:

 


  • larger apartments,


  • luxury homes,


  • and higher-ticket properties,


  • particularly in markets such as:


  • Gurgaon,


  • Mumbai,


  • Bengaluru,


  • Hyderabad,


  • and NCR

 


This trend has helped developers maintain strong sales value growth even as actual transaction volumes begin stabilising after the post-pandemic housing boom.

 


At the same time, developers are launching projects aggressively.

 


New residential supply across the 75 cities rose around 10% year-on-year to 6,20,842 units during FY26. The surge in launches has pushed unsold housing inventory up by nearly 13% to around 12 lakh units nationwide.

 


Liases Foras noted that housing sales have remained “largely flat despite economic concerns,” while supply additions have accelerated sharply. 
Out of 17,680 developers active across India in FY26, 59 mega-large developers contributed 18% of the total residential supply launched nationwide. In contrast, small developers – who make up nearly 71% of the active developer base – accounted for 29% (1,81,033 units) of the pan-India residential new supply.  


Among India’s major property markets, the:

 


Mumbai Metropolitan Region (MMR) continued to dominate, accounting for around 23.7% of total pan-India housing sales while recording around 4% annual growth.

 


Bengaluru ranked second with nearly 10% market share, supported by continued demand from the city’s technology and startup ecosystem.

 


Pune, however, emerged as one of the weakest-performing major housing markets, recording a sharp 25% decline in annual sales despite having one of the largest supplies of marketable inventory.

 


The report also showed that Tier-II and Tier-III cities continued facing pressure, with housing sales declining around 4% during the year.

 


Key Pricing Segments Driving Supply 


  • ₹50 lakh to ₹5 crore emerged as the dominant supply range.  


  • The ₹1 crore–₹1.5 crore segment recorded the largest contribution to overall launches 83,430 launches 


  • The ₹50 lakh–₹75 lakh segment emerged as the third-largest contributor, reflecting renewed activity in relatively affordable mid-segment housing. 


  •  Importantly, affordable housing activity also remained visible in the market.  


  • Nearly 34,000 units priced below ₹30 lakh were launched during the period.  


  • The data suggests that residential supply is now becoming more diversified across price categories, with developers targeting a wider buyer base rather than focusing exclusively on premium housing segments.

 

“The Indian residential market is entering a transitional phase — moving away from a purely consolidation-driven cycle toward a more decentralized and broad-based growth phase. Sales momentum, while stable, shows signs of gradual moderation, even as rising new supply and growing participation from smaller developers reflect deepening market confidence beyond the top-tier players. A revival in the mid-income segment adds further breadth to demand, complementing the premiumization trend that has driven value growth over the past year. Price appreciation, while continuing, is expected to remain moderate and increasingly project specific. However, emerging execution and inventory risks will need careful navigation, as aggressive supply additions outpace construction progress in several markets. Sustained monitoring of inventory levels, construction timelines, and absorption trends will be critical in assessing the market’s mediumterm stability and ensuring that this phase of expansion translates into durable, structurally sound growth,” said Pankaj Kapoor, MD at Liases Foras.  
Price Appreciation 


  • Pan-India housing prices rose 3% year-on-year. 


  • Among the top eight metros, Ghaziabad recorded the highest growth at 9%, followed by Gurgaon and Noida with 7% growth. 


  • The Greater Mumbai region recorded 2% growth. 


  •  In Tier-2 & 3 cities, Dehradun led year-on-year housing price growth with an 11% increase, followed by Jaipur and Chandigarh, each recording 8% growth


  • Pan-India, 61% of projects recorded year-on-year price growth of 0–10%, and 17% of projects recorded growth above 10%. In the top metros, a similar trend is observed, with the majority of projects having 0–5% year-on-year growth. In Tier-2 cities, 64% of projects recorded up to 10% year-on-year price growth


Rising Momentum in Mid Segment Apartment Launches 


  • In FY-26, apartments accounted for 75% of the total launched supply, with the highest number of launches concentrated in the ₹1 Cr₹1.5 Cr segment. 


  • Nearly 48% of all apartment launches fell within the ₹1 Cr–₹5 Cr price bracket. 


  • Within the sub-₹1 Cr category, the ₹50–75 lakh segment emerged as the most preferred. 


  • Overall, 52% of launches across India were in segments priced above ₹1 Cr, indicating a growing trend toward premium housing launches.


New Supply 


  • Pan-India new launches witnessed a 10% year-on-year increase. 


  • MMR and Bangalore recorded a 11% and 5% decline in new launches in FY26, respectively, while Pune and NCR remained largely stable on a year-on-year basis. 


  • Chennai emerged at the top with a 69% increase in new launches, followed by Kolkata and Hyderabad with growth of 27% and 25%, respectively. 


  • Tier 2 and Tier 3 cities recorded a 32% growth in new launches in FY26



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