Home sales across India's seven major residential markets rose 6 per cent year-on-year to 2,14,562 units during January–September 2026, reversing a 12 per cent decline recorded in the same period of 2025, according to a report released by real estate consultancy JLL on 5 November 2026. The recovery was driven decisively by demand for premium housing, with apartments priced at ₹1 crore and above posting 23 per cent year-on-year growth and capturing 72 per cent of total sales — up from 62 per cent a year earlier.

Premium Segment Leads the Charge

Within the premium category, the ₹1.5–3 crore segment emerged as the standout performer, recording 54 per cent year-on-year growth in sales. Developers responded in kind, with launches in this bracket surging 70 per cent. Overall residential launches across the top seven cities climbed 15 per cent year-on-year to 2,59,425 units during the same nine-month window, reflecting a broad realignment of new supply toward premium-led demand.

Siva Krishnan, Senior Managing Director and Head of Residential Services, India, JLL, said: 'Sales momentum has been led decisively by the ₹1.5–3 crore segment, which grew 54 per cent year-on-year, while developers have matched this demand with a massive 70 per cent increase in launches.'

Mass Housing Segment Under Pressure

In sharp contrast, the sub-₹1 crore mass housing segment continued to lose ground, with sales falling 23 per cent year-on-year. Affordability pressures and a structural shift in buyer preference toward larger, higher-specification homes reshaped the demand mix, the JLL report noted. The trend underscores a widening divide within India's residential market — where aspirational and upper-income buyers are actively upgrading, while entry-level buyers face tighter constraints.

City-wise Performance in Q3 2026

Sales in the third quarter of 2026 rose 12 per cent quarter-on-quarter to 76,181 units. Hyderabad led city-level growth with a striking 70 per cent quarterly jump, followed by Kolkata at 28 per cent and Bengaluru at 13 per cent. Delhi-NCR and Mumbai posted marginal quarterly declines of 5 per cent and 2 per cent respectively, though both cities retained significant overall transaction volumes.

What Is Driving the Shift

The report attributed the broader recovery to sustained urban migration, infrastructure upgrades across major metros, and evolving lifestyle preferences among homebuyers. Buyers are increasingly gravitating toward projects from established developers known for superior specifications, prime locations, and reliable delivery timelines — a signal, the report noted, of a more mature home-buying audience in India. This comes amid a post-pandemic recalibration of housing priorities, where space, quality, and neighbourhood amenities have risen sharply in importance.

Notably, the premium segment's dominance is not new — it has been building since 2023 — but the pace of acceleration in 2026 marks a new high-water mark in terms of market share. Whether this trajectory sustains into Q4 2026 and the broader 2027 cycle will depend on interest rate movements and the pace of new launches in affordable categories.