Towards the end of 2025, the residential property market in India saw a significant change whereby fewer homes were sold in major cities but the value of sale of the homes rose, a factor that pointed to buyer behaviour changes and prices in the country. Such a trend, according to industry data, is a sign of a market struggling with affordability head winds and a resurgence of a premium-led demand that, in the year 2026, will be much dependent on how developers and investors react to it.
According to real estate consultancy firms, housing sales in the seven most prominent cities in India fell by about 14 per cent in the year 2025 with about 3.96 lakh units sold in the year 2025 against the 4.59 lakh units that were sold in the year 2024. Although volumes declined, total value of homes sold increased to 6 lakh crore and above, as compared to 5.68 lakh crore the same year, owing to an increased proportion of high-end and luxury sales.
The Financial Express Dip in Sales, Increased Prices in Major Urban Markets
The unit sales slowed down most in cities such as Mumbai Metropolitan Region (MMR), Pune and Hyderabad where the sales went down tremendously because of the increased prices, doubts and decreasing demand in the mass-market category. Nevertheless, Chennai went against the trend where it showed slight improvement in sales, a fact that highlights the heterogeneity of the market situation in different regions.
Business Standard reports that Property prices also went up even as the total volumes slowed. The National Capital Region (NCR) especially reported a growth of over 10 figures, and this was used to cushion the total value of sales. This price increment was driven by high demand for luxury and larger houses in well-linked micro-markets, as affordability issues affected the mid-segment of consumers. This lopsided pattern of fewer homes being sold and the overall value being greater is drawing the concern of both developers and investors as they reevaluate product positioning and strategies. It is worth noting that the developers are giving more focus on the integrated, lifestyle-based housing products and high configuration which is favored by buyers with higher incomes.
Developers React to the changing buyer preferences
Established developers are changing what they have to offer in response to the changing landscape. Indicatively, Signature Global, City of Colours and other key participants are increasingly concentrating on projects that lay emphasis on quality, connectivity, and delivery schedules – features that are increasingly becoming important to buyers in the preimmunized market. In 2026, according to analysts, developers will be left by creating a balance between price stability and product diversity to maintain the demand in segments. In the case of major developers, such as Signature Global, balancing a portfolio can be an important factor to survive in the market until 2026. The ability of the sector to manage the affordability and focus on the foundation of the long-term expansion is likely to challenge and define its resilience as developers and buyers reconsider the expectations.
