Premium homes take centre stage as India's housing market rebounds during January-September 2026 with 6 percent growth in units sold: JLL

Mumbai, Nov 05: Home sales across the country’s  seven urban markets climbed 6% year-on-year to reach 214,562 units in the first nine months of 2026, marking a turnaround from the 12% Y-o-Y drop registered during the corresponding period in 2025, according to JLL. The recovery was led decisively by premium housing, with apartments priced at INR 1 crore and above posting 23% Y-o-Y growth and capturing 72% of total sales during the period, up from 62% a year earlier, driven by sustained urban migration, upgrades to infrastructure, and shifting lifestyle preferences among homebuyers. The INR 1.5–3.0 crore category remained the standout performer, with demand climbing 54% Y-o-Y. The mass housing segment continued to lose ground, with sales falling 23% Y-o-Y as affordability pressures and a continued shift in buyer preference toward larger, higher-specification homes reshaped the demand mix.

The first nine-month performance was particularly encouraging across key markets in Bengaluru, Mumbai, Hyderabad and Pune, each exceeding 12,000- unit sales during the quarter, together representing approximately 76% of total Q3 sales. Chennai led with a 22% Y-o-Y increase in sales, followed by impressive 18% growth in Bengaluru and 16% in Hyderabad demonstrating the strength of these markets. Bengaluru, Mumbai, and Pune together accounted for 60% of national sales volume, consistent with their combined share in Q3 2025, thereby reinforcing their position as India's primary residential hubs.

Consistent with the nine-month trend, India's top seven cities recorded 12% q-o-q sales growth in Q3 2026, totaling 76,181 units, with Hyderabad (+70%), Kolkata (+28%) and Bengaluru (+13%) posting the strongest quarterly gains among others, with marginal sales decline recorded only in Delhi NCR (-5%) and Mumbai (-2%).

The housing sector's resilience is reflected in continued buyer activity across various price segments. Although market dynamics have shifted, with homebuyers placing greater emphasis on quality, location, and amenities, the core demand drivers remain unchanged. Buyers' growing preference for projects by established developers known for superior specifications, prime locations, and reliable delivery timelines points to a more mature homebuying audience in India.

“The first nine months of 2026 reaffirm the structural shift in India's residential market toward premium and larger-format homes. Sales momentum has been led decisively by the INR 1.5-3.0 crore segment, which grew 54% Y-o-Y, while developers have matched this demand with a massive 70% increase in launches. At the same time, the mass housing segment continues to see demand moderate, underscoring a clear bifurcation in buyer preferences. Capital values have moved in tandem with this shift, with cities such as Bengaluru, Chennai and Kolkata recording the steepest gains in Q3 2026. We expect this premium-led growth pattern, supported by calibrated new launches, to remain the defining theme of the market through the remainder of 2026.” said Siva Krishnan, Senior Managing Director (Chennai & Coimbatore), Head - Residential Services, India, JLL.

India's housing market has moved decisively toward higher-value homes during January-September 2026. Overall sales, along with demand for premium properties priced above INR 1 crore, have rebounded after last year's slowdown, a sign that buyer confidence is returning. However, affordable housing seekers continue to face challenges, and this divide between premium and budget segments is expected to persist in the near term. The 15% year-on-year rise in residential sales value over the first nine months was largely fuelled by strong momentum in the premium segment.

Developers continued to align new supply with the prevailing premium-led demand pattern, with residential launches across the top seven cities rising 15% Y-o-Y to 259,425 units during January–September 2026. Bengaluru, Hyderabad and Mumbai led this expansion, with launches growing 41%, 37% and 24% Y-o-Y respectively, as developers moved to capture sustained momentum in the premium and luxury categories. In contrast, Kolkata, Chennai and Pune recorded a contraction in new launch volumes, reflecting a more cautious approach to supply addition in these markets. At the national level, Q3 2026 launches stood at 90,918 units, up 28% Y-o-Y from 70,915 units in Q3 2025 and 16% q-o-q.

Premium housing segments continue to support price growth across cities.

Capital values across the top seven cities continued their upward trajectory in Q3 2026, underpinned by sustained demand in the premium and luxury segments. Bengaluru recorded the sharpest Y-o-Y appreciation at 15%, followed by Chennai (12%) and Kolkata (11%), while Delhi NCR and Mumbai posted gains of 10% and 8% respectively. Pune registered the most moderate increase among the top seven cities, at 6% Y-o-Y, consistent with softer sales momentum in the city over the last few quarters.

Outlook: Premium segment and value-led growth to continue in India’s residential sector

India's residential sector is poised to maintain its premium-led growth trajectory in the near term. The INR 1.5-3.0 crore segment is expected to continue outperforming, supported by sustained demand from upwardly mobile and affluent buyers seeking larger, amenity-rich homes. Developers are likely to keep calibrating launches toward this segment, as evidenced by the sharp rise in premium project launches during 2026. Capital values are expected to see continued appreciation, particularly in cities like Bengaluru, Chennai, and Kolkata, driven by strong fundamentals, limited quality supply, and rising construction costs. However, the mass and affordable housing segments may continue to face demand moderation, reflecting ongoing affordability pressures and shifting buyer preferences toward quality over price. Overall sales volumes are likely to remain stable to modestly positive, with value growth continuing to outpace volume growth as the market's center of gravity shifts toward higher-ticket transactions. The bifurcation between premium and affordable housing is expected to persist through the rest of 2026, with buyer confidence remaining firm in the higher-value segments while affordability-conscious homebuyers continue to exercise caution.