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Mumbai leads top 9 cities in residential sales value with 34% share in FY26: CREDAI-ANAROCK report
Credai-Natcon 2026: Total value of housing projects under construction stood at $430 bn last year, nearly a two-fold jump from 2019, says Credai-Anarock report
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The Mumbai Metropolitan Region (MMR) remained India’s largest residential market by sales value in FY26, accounting for 34% of the ₹6.3 lakh crore sales across the top nine cities, followed by Delhi-NCR at 22% and Bengaluru at 15%, according to a report by CREDAI and ANAROCK Research & Advisory launched at the 24th CREDAI NATCON.
The report titled Indian Real Estate: Growth Trajectory, Sectoral Outlook and Geopolitical Crosscurrents noted that the Indian real estate market has grown from $120 billion in 2017 to around $600 billion in 2025 and is projected to reach $1 trillion by 2030 and nearly $5.8 trillion by 2047. The total value of real estate under construction has increased more than five-fold, from $94 billion in 2009 to $503 billion in 2025.
The construction activities in the housing market have also risen sharply in the last few years on account of surge in demand post-Covid pandemic. The total value of housing projects under construction has risen to $430 billion in 2025 from $235 billion in 2019 and just $45 billion in 2009, the consultant said.
Residential remains the largest and most closely watched segment of Indian real estate, accounting for 85% of the value of real estate under construction in 2025. Annual sales value across the top 7 cities has grown from ₹2.35 lakh crore in FY22 to ₹6.3 lakh crore in FY26, a compound growth of over 27% per year, even as unit sales volumes have grown more modestly, reflecting a sustained shift toward higher ticket sizes, it said.
The most significant structural shift in residential supply has been the rise of premium housing. High-end, luxury and ultra-luxury categories together accounted for just 12.6% of new supply in FY22; by FY26 that combined share had grown to 45%. Affordable and lower-mid segments, by contrast, have both roughly halved their share of new supply over the same period, from 24.6% to 13.6% and from 36.9% to 18.0% respectively, the report noted.
Combined FY27 presales guidance across listed residential developers stands at approximately ₹1.85 lakh crore, an aggregate growth of 22% over FY26 actuals. The large majority of listed players are guiding double-digit growth for FY27, with several mid-sized listed players guiding 40% or higher growth off smaller bases, while larger, more established listed players are consolidating growth in the 14-21% range, the report noted.
In office, Global Capability Centres, accounted for around 45% of leasing in H1 2026, while listed office REITs have expanded their combined leasable area nearly six-fold since FY19. Tier-II and Tier-III cities are also emerging as new centres of real estate activity, alongside the growth of data centres, warehousing and hospitality, the report noted.
"Residential sales value stayed above ₹1.3 lakh crore for seven consecutive quarters. Grade A office absorption held firm, driven by Global Capability Centres accounting for around 45 per cent of total leasing in H1 2026," Anarock Chairman Anuj Puri said at the 24th Credai Natcon summit being held in Kolkata.
Impact of the West Asia crisis on the real estate market
Crude oil prices, the rupee, and the pace of any resolution in West Asia will continue to shape input costs and buyer sentiment through the rest of FY27, the report said.
Total construction costs are estimated to have risen 8-10% since the West Asia war began, but this increase is concentrated in a small number of import- and fuel-linked inputs rather than spread evenly. Steel (TMT) prices have jumped an estimated 20%, as prices reached approximately ₹72,000/tonne, the sharpest increase of any major input. Fuel and site logistics costs have risen 15-20% on crude oil above $100/barrel, and finishing materials such as imported tiles, glass and hardware have seen 8-12% escalation as shipping reroutes around the Cape of Good Hope add cost and time to global supply chains, the report noted.
The demand of the residential segment has been the most impacted, as the fuel-inflation-EMI transmission chain weighs on affordability and NRI buyer sentiment softens alongside currency volatility. Office leasing has proved comparatively resilient, cushioned by long-cycle GCC commitments that are largely insulated from short-term macro volatility.
Retail and hospitality sit in between: both have seen discretionary and travel-linked demand soften, but essentials-led retail and domestic tourism have provided meaningful cushions. Industrial and warehousing demand has softened on the export side even as e-commerce-linked domestic demand and the broader "China+1" sourcing shift toward India remain structurally intact, the report noted.
CREDAI National President Shekhar Patel noted that the journey of the sector mirrors that of the country. "From a $120 billion market in 2017, it has grown to an estimated $600 billion today and is on course to reach $1 trillion by 2030 and nearly $5.8 trillion by 2047," he said.
The Confederation of Real Estate Developers Associations of India (CREDAI) is organising its flagship conference 'NATCON' during October 2-4 in Kolkata. More than 1,000 builders are participating in the three-day event. There are more than 13,000 developers as members in the CREDAI.
