India's housing market shows confidence and luxury growth
India’s residential property sector is signalling strong economic confidence. In Q2 2026 developers launched about 106,000 homes across the top seven cities, a 7 % year‑on‑year rise, while nearly 90,700 units were sold despite rising prices.
Developers are shifting focus to Tier‑2 cities, where more than half of recent plot launches have occurred. Government infrastructure programmes such as the Urban Challenge Fund and new expressways are improving connectivity, encouraging both builders and buyers to move to lower‑density, organised plotted developments.
The luxury segment is outperforming the broader market. Luxury and premium homes made up roughly 42 % of new supply in key cities, representing about ₹2.98 lakh crore in sales and growing 7 % YoY. Mumbai remains the most expensive market, with luxury prices up about 43 % over three years, while Delhi‑NCR leads in transaction value. Gurugram accounted for over 73 % of total luxury sales in 2025, overtaking Mumbai for the first time.
Entities: ANAROCK Research · Bhumika Group · Delhi-NCR · India · Mumbai Metropolitan Region · RERA · TREVOC Group · Union Budget · Urban Challenge Fund
Claims
What the coverage asserts, and how well corroborated each claim is across sources.
- [○ 1 SOURCE] Government infrastructure spending and initiatives such as the Urban Challenge Fund are improving connectivity in Tier‑2 cities, boosting plotted development activity. (Article d3247ae1-a82b-4e04-b68e-4f48a0b7e3ab)
- [○ 1 SOURCE] Approximately 106,000 homes were launched across India's top seven cities in Q2 2026, a 7 % YoY increase. (Article 92b61402-c220-4046-9087-0e625f93400a)
- [○ 1 SOURCE] Luxury home prices in the Mumbai Metropolitan Region rose about 43 % over the past three years. (Article a56a845f-7c2c-4cdf-94a2-4902b6694143)
- [○ 1 SOURCE] Nearly 90,700 homes were sold in the same period. (Article 92b61402-c220-4046-9087-0e625f93400a)
- [○ 1 SOURCE] Luxury and premium homes accounted for about 42 % of new home supply in key Indian cities and represented roughly ₹2.98 lakh crore in sales, growing 7 % YoY. (Article a56a845f-7c2c-4cdf-94a2-4902b6694143)
- [○ 1 SOURCE] Delhi‑NCR is the largest luxury home market in India by transaction value. (Article a56a845f-7c2c-4cdf-94a2-4902b6694143)
- [○ 1 SOURCE] Gurugram accounted for over 73 % of total luxury residential sales in 2025, surpassing Mumbai for the first time. (Article a56a845f-7c2c-4cdf-94a2-4902b6694143)
- [○ 1 SOURCE] More than half of recent residential plot launches have been concentrated in Tier‑2 cities. (Article d3247ae1-a82b-4e04-b68e-4f48a0b7e3ab)