Residential property transactions across India’s largest urban markets slowed modestly this year, but the total value of homes sold continued to climb, pointing to a structural shift in how and where urban Indians are investing in housing. Data compiled from nine major cities show that while the number of registered homes declined by about five per cent compared to last year, the aggregate transaction value rose sharply, underlining the growing dominance of higher-priced housing segments.
The data covers key metropolitan and suburban markets including Mumbai, Thane, Navi Mumbai, Pune, Bengaluru, Hyderabad and the National Capital Region clusters of Noida, Greater Noida and Ghaziabad. Together, these cities account for a substantial share of India’s formal residential transactions across both primary and resale markets, making them a bellwether for broader urban housing trends. Industry analysts attribute the divergence between volume and value to changing buyer behaviour rather than weakening demand. With borrowing costs elevated and affordability under pressure, many households are postponing entry-level purchases. At the same time, financially secure buyers are upgrading to larger or better-located homes, often in projects offering stronger construction standards, sustainability features and integrated infrastructure. This has pushed up the average ticket size even as overall registrations eased. “The market is no longer driven by speculative churn,” said a senior housing market analyst. “Buyers today are deliberate, prioritising quality, compliance and long-term livability. That naturally favours mid-to-premium segments, especially in well-planned urban corridors.”
Premium and luxury housing made a disproportionate contribution to transaction value growth during the year. Developers have increasingly focused on fewer but higher-quality launches, responding to a more discerning buyer base and tighter regulatory oversight. Urban planners note that this shift, if managed responsibly, could support more efficient land use by encouraging denser, well-serviced developments rather than unchecked sprawl. The data also reflects the maturation of India’s residential markets. Supply pipelines have become more disciplined, with fewer speculative projects and a stronger emphasis on completion timelines. This has helped stabilise buyer confidence even amid macroeconomic uncertainty. Markets such as Bengaluru and Hyderabad, supported by technology-driven employment, continued to show resilience, while Mumbai’s value growth remained anchored in limited land availability and strong demand for centrally located housing. Looking ahead, industry experts expect residential activity to regain balance in 2026 as interest rates soften and income growth catches up with prices. Demand is likely to remain concentrated in new, compliant projects that meet evolving expectations around energy efficiency, open spaces and access to public transport.
From an urban development perspective, the shift towards higher-value housing highlights the need for parallel investment in affordable and rental housing to ensure inclusivity. As Indian cities expand, aligning housing supply with sustainable infrastructure and equitable access will be critical to maintaining social and economic balance in the years ahead.
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