Key Takeaways:
- India residential property registrations fell 5% to 5.45 lakh units across nine cities till 25 December, while total sales value rose about 11% to Rs 4.46 lakh crore.
- Premium and luxury housing drove value growth, particularly in the Mumbai Metropolitan Region, offsetting a decline in transaction volumes.
- Square Yards expects the market to stabilise in 2026 with disciplined supply, a maturing buyer base and renewed focus on mid-market segments.
- Developers report strong preference for new, well-located branded projects and larger homes, supporting higher average ticket sizes.
Residential registrations fall while values rise as luxury demand lifts India housing market
Registration of residential properties across nine major Indian cities declined 5% year‑on‑year to 5.45 lakh units until 25 December this year, but the total value of those transactions rose by roughly 11% to an estimated Rs 4.46 lakh crore, according to data released by real estate consultant Square Yards.
The consultant’s analysis covers primary and secondary (resale) market transactions in Pune, Thane, Mumbai, Navi Mumbai, Bengaluru, Hyderabad, Noida, Greater Noida and Ghaziabad. Square Yards highlighted that while volumes eased, a sharp uptick in demand for premium and luxury homes has lifted overall sales value.
India residential property registrations reveal a split between volume and value
In 2024 the same nine markets recorded 5.77 lakh registrations valuing about Rs 4.03 lakh crore. The contrast this year reflects a clear shift in the composition of sales. Wealthier buyers with higher disposable incomes accounted for a rising share of transaction value, particularly in micro‑markets within the Mumbai Metropolitan Region (MMR).
Tanuj Shori, Founder and CEO of Square Yards, said that a sustained price appreciation over the last three to five years has started to test affordability in several premium neighbourhoods. “While demand remains structurally resilient, incremental growth in the luxury segment is expected to moderate in 2026, indicating the onset of a stabilisation phase rather than a slowdown,” he added.
Developers pointed to evolving buyer behaviour as a driver of the trend. Rajat Khandelwal, Group CEO of Tribeca Developers, noted that purchasers show a clear preference for newly launched projects. Santosh Agarwal, CFO and Executive Director of Alpha Corp Development Ltd, said the market growth is being driven by demand for premium, larger homes, higher average ticket sizes and a move towards quality, branded developments. “Both end‑users and investors are prioritising well‑located projects, superior amenities, and long‑term value over volume‑led buying,” he said.
Square Yards projects a balanced outlook for 2026. Supportive factors include disciplined supply pipelines, a maturing buyer base and a gradual re‑balancing of demand towards the mid‑market segment, which could broaden affordability and sustain sales volumes over time.
Analysts say the current pattern — fewer transactions but higher aggregate value — is not necessarily a warning signal for the housing sector. Instead, it reflects segmentation, where luxury and premium inventory commands disproportionate value while mid‑market transaction counts stabilise. Policymakers and developers monitoring affordability thresholds will be watching pricing moves in premium micro‑markets closely.
For prospective buyers and investors, the prevailing market signals suggest selective opportunities. Premium inventory continues to attract capital, but the anticipated moderation in luxury growth next year may open space for mid‑market projects to regain momentum. In the near term, the Indian housing market appears well positioned for sustainable progress as supply and demand gradually find a new equilibrium.
