All-India Housing Prices Rise 6% YoY in Q1 FY27, Says Report

India’s residential real estate market continued to see price appreciation in the first quarter of FY27, even as sales volumes remained largely range-bound. According to a Kotak Institutional Equities report, average housing prices across India increased 6 per cent year-on-year (y-o-y) in Q1 FY27, helping drive a 9 per cent annual increase in residential sales value.

According to the report, all-India residential sales stood at 247 million sq. ft in Q1 FY27, up 3 per cent on a yearly basis, but down 3 per cent sequentially. At the same time, average realisation rose to around Rs 9,629 per square foot, registering 6 per cent annually. The increase in prices more than offset the relatively modest growth in sales volumes, highlighting the growing contribution of price appreciation to the overall expansion of the housing market, the report said.

“The appreciation in housing prices is hardly surprising. In Gurugram, especially along Dwarka Expressway, demand has remained far stronger than what many expected even two years ago. What started as a location buyers considered for future potential has now become a preferred address in its own right," says Vikas Garg, Joint Managing Director, Ganga Realty.

Key markets drive housing demand

The performance across major markets remained uneven. The Mumbai Metropolitan Region (MMR), Bengaluru and Hyderabad recorded healthy growth in residential sales, while Delhi-National Capital Region (Delhi-NCR) saw a sharp decline.

MMR reported sales of 41.50 million sq. ft, an increase of 16 per cent on a yearly basis. Bengaluru performed even more strongly, with sales rising 20 per cent on a y-o-y basis to 30.70 million sq. ft. Hyderabad also recorded a 14 per cent growth with sales reaching 34.30 million sq. ft.

"The sustained appreciation in residential prices across key markets reflects a structural shift rather than a cyclical upswing. Homebuyers today are prioritising locations backed by strong infrastructure, connectivity and social ecosystem, resulting in long-term value creation," says Manik Malik, President and CEO, BPTP Limited.

Pricing Remains the Key Growth Driver

The report said that India’s housing market is increasingly being driven by price appreciation rather than a sustained expansion in volumes.

It said industry sales volumes have remained broadly range-bound for three consecutive years, while larger developers have continued to expand through geographical diversification and higher market share.

Elsewhere, unsold housing inventory across India stood at about 1.80 billion sq. ft as of June 2026, equivalent to roughly 1.9 years of trailing 12-month sales. Although inventory levels remained moderate, some accumulation has taken place in recent quarters as launches exceeded sales, it added.

The report said that for the remainder of FY27, the key question will be whether sales volumes can accelerate alongside prices.

“A sustained recovery in volumes would provide stronger evidence of underlying demand. With developers planning a substantial pipeline of new launches, the coming quarters will indicate whether the market can transition from a price-led growth cycle to one supported by both pricing and volume expansion,” the report said.