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India Housing Sales to Grow 5–7% in FY26 as Premium Launches Gain Ground

Soaring land and construction costs are limiting affordable launches, exacerbating a build-up of unsold homes

The premiumisation trend is set to continue, with luxury housing expected to make up 40% of launches in 2025–26, as per an analysis by Crisil (Picture for representational purposes only)
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Overview

  • Crisil projects housing sales volumes will rise by 5–7% and average prices will increase by 4–6% in fiscal 2025–26.
  • Premium and luxury segments are set to account for 38–40% of new launches in 2025 and 2026.
  • Shares of affordable and mid-income launches are forecast to shrink to 10–12% and 19–20% respectively.
  • Continued supply growth is expected to push unsold inventory to around 2.9–3.1 years of sales.
  • Developers are maintaining healthy credit profiles through strong collections and reduced leverage.