- Housing prices across India rose 6% in Q1 FY27.
- Sales volumes remained largely range-bound for three years.
- NCR and Bengaluru markets saw significant price appreciation.
Housing prices across India rose 6 per cent year-on-year in the first quarter of FY27, even as sales volumes remained largely range-bound, according to a research report by Kotak Institutional Equities. Average realisation across key residential markets stood at Rs 9,629 per sq ft in Q1 FY27, up 6 per cent from a year earlier, although it declined 2 per cent sequentially. The rise in realisations helped overall sales value increase 9 per cent year-on-year during the quarter.
New Delhi, Noida, Chennai, Greater Noida and Bengaluru were among the markets contributing to the increase in overall realisations. Kotak also noted that several projects in Bengaluru and Gurugram have recorded strong price growth over the past few years.
The price increase comes despite limited movement in sales volumes. Residential sales across India stood at 247 million sq ft during the quarter, up 3 per cent year-on-year but down 3% sequentially. New project launches fell 14 per cent year-on-year and 16% quarter-on-quarter to 242 million sq ft.
According to Kotak, much of the industry’s growth over the past two years has been driven by price appreciation, while volumes have remained range-bound. A sustained recovery in sales volumes would therefore provide a clearer indication of underlying demand strength.
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NCR sees sharp fall in sales
NCR recorded one of the sharper declines in residential sales during the quarter. Sales fell 27% year-on-year and 8% sequentially to 23.5 million sq ft, while new launches stood at 21.2 million sq ft.
Despite the decline in overall volumes, parts of the NCR market, particularly Gurugram, continue to benefit from infrastructure development and improving connectivity. The Dwarka Expressway and other emerging corridors have increasingly moved from being future-growth locations to established residential destinations.
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Ashok Singh Jaunapuria, MD & CEO, SS Group, said the NCR market is increasingly being shaped by infrastructure and the emergence of well-planned residential micro-markets.
“The latest Kotak Institutional Equities report highlights the resilience of India’s residential real estate market, with housing prices continuing to appreciate even as sales volumes remain relatively range-bound. In NCR, the underlying growth story is increasingly being driven by infrastructure-led development, improving connectivity and the emergence of well-planned residential micro-markets,” Jaunapuria said.
He said buyers are becoming more selective about location, connectivity and the overall quality of the development.
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Price appreciation reflects structural shift
Pushpender Singh, Managing Director, JMS Group, said the appreciation in Gurugram and Noida reflects a structural change rather than a short-term upswing.
“The sustained appreciation in residential property values across markets like Gurugram and Noida reflects a structural shift rather than a cyclical upswing. The 117% price growth in Gurugram since 2019 lines up exactly with what we have tracked across our own project cycles, particularly along corridors like Sector 95 and the Dwarka Expressway, where infrastructure delivery has directly fed into capital values,” Singh said.
He also pointed to the improvement in rental yields, saying it indicated that buyers were not relying solely on capital appreciation.
Raghunath Reddy Bhattagiri, Co-founder & MD, Triguna Projects, said, “Price increase in Bengaluru continues to highlight strong real estate fundamentals in the city and consistent confidence among buyers and investors. Price rise is attributed to the city's strong job environment, growth in technology and GCC sectors, improving infrastructure and rising preference for planned housing communities.”
Bengaluru has also been able to showcase healthy demand for premium quality housing in well-linked micro markets near major employment nodes. Although volatility in sales can be expected in an advancing market, the increase in property prices demonstrates the resilience and investment potential of the city, he added.
Inventory remains a monitorable
Unsold residential inventory increased sequentially across Bengaluru, Hyderabad and NCR, partly due to fresh project launches. At the all-India level, unsold stock stood at around 1.8 billion sq ft as of June 2026, equivalent to about 1.9 years of trailing 12-month sales.
The report noted that residential industry volumes have remained range-bound for three consecutive years, even as larger developers have continued to gain market share.
The trend is likely to keep developers cautious about new supply launches, with much greater emphasis on markets and projects where infrastructure, connectivity and end-user demand offer clearer visibility for sustained absorption.
India's Housing Price Surge FAQs
Ques- What was the housing market price trend during the quarter of FY27?
Housing prices across India rose 6 per cent year-on-year in Q1 FY27, showing market resilience despite global headwinds due to the US-Iran war.
Ques: How has the residential sales volume performed in the first quarter of FY27?
According to Kotak Institutional Equities report, sales volumes remained largely range-bound during Q1FY27. Residential sales stood at 247 million sq ft, a 3 per cent increase year-on-year but a 3 per cent decline sequentially.
Ques- How do experts explain the recent appreciation in residential property values?
Industry experts attributed the price growth in markets, especially in Gurugram and Noida, to a structural shift rather than a temporary cyclical upswing. They noted that infrastructure delivery has directly fueled capital values, with rising rental yields also signalling that buyers are looking beyond just capital appreciation.