Archive · 21 Aug 2026
India Housing Prices Rise 6% in Q1 FY27, Kotak Says
Homes across India became more expensive in the first quarter of FY27.
Prices increased by about 6% compared with the same period a year earlier.
New Delhi, Noida, Chennai, Greater Noida and Bengaluru were among the markets leading the increase.
The total value of homes sold grew because prices rose, even though sales volumes were weaker in some areas.
Overall sales increased slightly from last year but decreased from the previous quarter.
Fewer new housing projects were launched during the quarter.
Sales fell sharply in the National Capital Region, while Mumbai, Bengaluru and Hyderabad recorded stronger volumes.
Kotak said that a longer-lasting recovery in sales volumes would provide better evidence that housing demand is strong.
All-India residential prices rose 6% year over year in Q1 FY27, led by New Delhi, Noida, Chennai, Greater Noida and Bengaluru.
Average realization reached Rs 9,629 per square foot, helping lift residential sales value 9% despite lower volumes.
Residential sales rose 3% year over year to 247 million square feet but fell 3% sequentially.
New project launches declined 14% year over year to 242 million square feet, while NCR sales dropped 27% to 23.5 million square feet.
Unsold inventory reached 1.8 billion square feet by June 2026, equivalent to about 1.9 years of trailing 12-month sales.
- Who
- Indian residential real estate markets, according to a Kotak Institutional Equities report.
- What
- All-India housing prices rose 6% year over year in Q1 FY27, while residential sales value increased 9%.
- When
- The first quarter of FY27; inventory figures were reported as of June 2026.
- Where
- Across India, with gains led by New Delhi, Noida, Chennai, Greater Noida and Bengaluru.
- Why
- Higher pricing and increased realizations lifted sales value, although volumes and new project launches were weaker in several markets.
Growth Signals
Demand Concerns
Price and sales-value growth
Growth Signals
The 6% increase in prices and 9% growth in residential sales value indicate that higher realizations are supporting industry growth.
Demand Concerns
Kotak noted that growth has been driven largely by price appreciation rather than a sustained increase in sales volumes.
Volume outlook
Growth Signals
Sales volumes improved in markets including MMR, Bengaluru and Hyderabad, with new launches supporting activity.
Demand Concerns
Overall volumes have remained range-bound for three years, and the report said a sustained recovery would be needed to confirm underlying demand strength.
Inventory risk
Growth Signals
Larger developers are continuing to grow through geographical diversification and improving market share.
Demand Concerns
Unsold inventory increased sequentially in Bengaluru, Hyderabad and NCR following new launches, reaching 1.8 billion square feet nationally.
- Average realization
- Rs 9,629 per square foot, up 6% year over year and down 2% sequentially.
- Residential sales
- 247 million square feet, up 3% year over year and down 3% sequentially.
- New launches
- 242 million square feet, down 14% year over year and 16% sequentially.
- NCR sales
- 23.5 million square feet, down 27% year over year and 8% sequentially.
- MMR sales
- 41.5 million square feet, supported by 33.8 million square feet of launches.
- Hyderabad sales
- 34.3 million square feet, driven by 55.5 million square feet of new launches.
- Unsold inventory
- 1.8 billion square feet across India as of June 2026, equal to approximately 1.9 years of trailing 12-month sales.