India Home Sales Hit 1.71 Lakh; Ultra-Luxury Demand Surges

Synopsis: India's residential real estate market records 1.71 lakh home sales across eight major cities in the first half of 2026, while demand for ultra-luxury homes priced between ₹20 crore and ₹50 crore more than doubles, highlighting sustained premium housing demand.

India's residential real estate market recorded 1.71 lakh home sales across eight major cities during the first half of 2026, reflecting resilient buyer demand despite evolving market conditions. While overall housing sales remained largely stable, the premium and luxury housing segments continued to drive market growth, with demand for ultra-luxury homes priced between ₹20 crore and ₹50 crore more than doubling compared to the corresponding period last year. 

According to a report by Knight Frank India, homes priced above ₹1 crore accounted for nearly half of all residential sales during the period, underscoring the continued shift towards premium housing. The ₹20 crore-₹50 crore category emerged as one of the fastest-growing segments, driven by rising interest from high-net-worth individuals (HNIs), non-resident Indians (NRIs), entrepreneurs, and senior corporate executives seeking larger residences and lifestyle-oriented developments.

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The report noted that the eight major cities collectively witnessed home sales worth approximately ₹4.9 lakh crore in H1 2026, reflecting a healthy increase in transaction value despite moderate growth in sales volumes. Developers continued to focus on premium and luxury projects, responding to strong buyer demand for spacious homes, integrated townships, and properties offering high-end amenities. Rising household incomes, improving infrastructure, and sustained economic growth have further supported demand for premium residential developments.

Delhi-NCR and Mumbai remained the country's largest premium housing markets, while Bengaluru, Hyderabad, Chennai, and Pune also recorded strong demand in higher-value residential segments. The luxury housing market has been further supported by favourable financing conditions, growing wealth creation, and increasing interest from domestic as well as overseas buyers. At the same time, the affordable housing segment continued to face supply constraints as developers concentrated on projects with higher realisation and stronger margins.

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Industry experts believe the residential market is likely to remain resilient through the remainder of 2026, supported by robust end-user demand and continued interest in premium housing. The sustained growth in luxury home purchases highlights changing consumer preferences, with buyers increasingly prioritising larger living spaces, lifestyle amenities, and long-term value. Developers are expected to continue expanding their premium portfolios as demand for high-value residential properties remains strong across India's leading metropolitan markets.