Luxury Homes Lead India’s Realty Growth: Premium Supply Hits 42% in H1 FY26

By Sana khan -Editor

India’s residential market continues to display exceptional value growth this year, led by the rising dominance of premium and luxury housing. According to data from Anarock, nearly 42% of all new housing launches in the first half of FY26 fall under high-end or luxury categories, reflecting a clear shift in buyer sentiment toward branded, experience-driven homes.

Despite the surge in value terms, overall housing volumes are likely to remain stable through the rest of the fiscal. Analysts expect the total value of residential sales across India’s top seven cities—NCR, MMR, Bengaluru, Pune, Hyderabad, Chennai, and Kolkata—to rise by nearly 19% in FY26, crossing ₹6.65 lakh crore. The jump is being driven largely by big-ticket transactions, even as affordability pressures weigh on mid-income demand.

In FY25, these seven key markets recorded around ₹5.59 lakh crore in sales, backed by the sale of 4.22 lakh units. While the overall value rose 6%, unit sales dropped about 14% year-on-year, underscoring that rising prices and high interest rates are slowing end-user momentum. Developers and analysts both point to global economic uncertainties and escalating input costs as major factors influencing buyer behaviour.

Prashant Thakur, Executive Director and Head of Research at Anarock, said the market continues to show resilience despite moderation in unit growth. “The momentum remains value-heavy. More than 1.93 lakh homes worth ₹2.98 lakh crore were sold in the first half of FY26 alone—already accounting for over half of FY25’s total. Luxury demand continues to anchor the housing sector and keep the market stable,” he said.

Among the leading cities, Delhi-NCR and Chennai are showing the strongest momentum, each having achieved around 70% of their previous year’s total sales value within the first half of FY26. The Mumbai Metropolitan Region (MMR), however, has seen a more measured pace, recording around 45% of last year’s overall value so far. Industry experts say that while the premium segment continues to perform, affordable and mid-segment housing faces headwinds due to high acquisition costs and limited policy incentives.

Developers are responding to this changing trend by expanding their luxury portfolios and introducing more high-end projects equipped with lifestyle amenities. Rajat Bokolia, CEO of Newstone, observed that the market is now clearly segmented by price and buyer intent. “Premium homes are sustaining value and stability, but the flat unit growth highlights the affordability challenge. Buyers are increasingly prioritising quality, design, and brand assurance over price per square foot,” he said.

Rising land values, input costs, and aspirations for premium living spaces are collectively reshaping the urban housing narrative. While the overall pace of unit absorption may stay moderate, the luxury category continues to power India’s residential market, cushioning it from broader economic uncertainties.

As FY26 progresses, analysts expect India’s housing story to remain value-led rather than volume-led, driven by sustained demand for premium residences, robust developer balance sheets, and investor confidence in high-end real estate. The luxury wave that began post-pandemic now appears firmly entrenched—setting the tone for a new era of aspirational homeownership in India’s urban centres