PREMIUM HOMES DRIVE HOUSING MARKET REVIVAL AS URBAN SALES REBOUND IN 2026

India’s residential property market staged a strong recovery in the first nine months of 2026, with home sales across the top seven cities rising 6% year-on-year. Premium housing led the resurgence, as affluent buyers prioritised larger, better-located homes, while affordability pressures continued to weigh on the mass-market segment.

India’s housing market has regained momentum in 2026, with rising demand for premium homes fuelling a broad-based recovery across the country’s largest urban centres.

According to property consultancy JLL, home sales across the top seven cities reached 214,562 units during the first nine months of the year, representing a 6% increase from the same period in 2025. The performance marks a significant turnaround from the 12% year-on-year decline recorded during the corresponding period last year, signalling renewed confidence among homebuyers despite persistent affordability challenges.

The recovery has been overwhelmingly driven by premium housing. Apartments priced at ₹1 crore and above accounted for 72% of total sales between January and September, compared with 62% a year earlier. Sales in this segment surged 23% year-on-year, underlining a decisive shift in buyer preferences towards higher-value properties.

JLL attributed the trend to continued urban migration, improvements in infrastructure and evolving lifestyle aspirations among homebuyers. Increasing numbers of purchasers are opting for larger homes with superior specifications, modern amenities and better connectivity, particularly in major metropolitan areas.

Among the various price categories, homes priced between ₹1.5 crore and ₹3 crore emerged as the strongest-performing segment, registering a remarkable 54% rise in demand compared with the previous year. The growth reflects the willingness of financially stronger buyers to upgrade their living standards and invest in premium residential developments.

In contrast, the mass housing segment, comprising properties priced below ₹1 crore, continued to struggle. Sales in this category fell 23% year-on-year as affordability concerns, elevated housing costs and changing consumer preferences reduced demand. The figures highlight an increasingly polarised market, where premium offerings are gaining prominence while entry-level housing faces mounting pressure.

Several key residential markets delivered particularly encouraging performances during the first nine months of the year. Bengaluru, Mumbai, Hyderabad and Pune each recorded sales exceeding 12,000 units during the third quarter, and together accounted for roughly 76% of total quarterly sales.

Chennai emerged as the fastest-growing market on an annual basis, posting a 22% increase in sales. Bengaluru followed with growth of 18%, while Hyderabad recorded a 16% rise, reinforcing the strength of southern India’s residential sector.

Meanwhile, Bengaluru, Mumbai and Pune remained the dominant contributors to national housing demand, together accounting for around 60% of total sales volumes. Their combined share has remained unchanged from the same period last year, underscoring their continued importance as the country’s leading residential hubs.

The positive trend was equally visible during the third quarter. Across the seven major cities, residential sales rose 12% quarter-on-quarter to 76,181 units. Hyderabad delivered the strongest quarterly performance with a 70% increase in sales, followed by Kolkata at 28% and Bengaluru at 13%.

Only Delhi NCR and Mumbai registered modest quarterly declines, with sales easing by 5% and 2% respectively.

Industry observers say the figures reflect a more mature and discerning homebuyer base. While housing demand remains robust, purchasing decisions are increasingly influenced by factors such as quality, location, amenities and delivery certainty. Buyers are showing a growing preference for projects developed by established and trusted builders, signalling a market that is evolving beyond simple price considerations and towards long-term value.