Why are fewer homes being sold in India's housing market in 2025-26?

Fewer homes are being sold due to widening affordability issues, economic uncertainty, and elevated home loan EMIs, which are deterring middle-class and first-time buyers.

What is the impact of rising property prices on India's housing market?

Rising property prices, increasing by about 8% annually in 2025, have led to a significant decline in sales of homes under ₹1 crore, while boosting the premium housing segment.

What is the future outlook for India's housing market in 2026?

Analysts predict market stabilization, with potential volume recovery contingent on deeper interest rate cuts and developers adjusting new launches to meet demand in the ₹1-2 crore bracket.

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India's housing market: Fewer sales, higher prices in 2025-26

18 Feb

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Summary

Housing sales across India's top seven cities declined 14% year-on-year in 2025.
Sales in the sub-₹1 crore segment plunged approximately 30%, while premium housing gained.
Rising property prices and economic uncertainty deter middle-class buyers.

India's housing market: Fewer sales, higher prices in 2025-26

India's housing market in 2025-26 has shifted from expansion to recalibration, marked by a 14% year-on-year decline in sales across the top seven cities by the end of 2025. Despite fewer units sold, the total value of residential transactions increased by 6% to over ₹6 lakh crore, indicating a move towards higher-priced properties.

The most significant impact is seen in the affordable segment, with sales of homes under ₹1 crore plunging by approximately 30%. Conversely, premium housing, particularly properties exceeding ₹1 crore and increasingly ₹2.5 crore, has gained traction in both launches and absorption.