Kumar projects total home sales value across India’s top cities will rise 10-12% this financial year (FY27) compared with last year (FY26), even as the number of units sold falls 3-4%. Luxury homes priced above ₹2.5 crore continue to gain a larger share of the value.
New launches had slowed through the March and June quarters. Kumar pointed to the West Asia crisis, which pushed up raw material costs, as one reason. Regulatory delays and unsold existing inventory added to the slowdown. Data from Axis Capital showed new launches falling 17% in the fourth quarter of 2025-26, with the drop continuing into the first quarter of 2026-27.
Developers that did launch projects during the slow quarter found buyers. Kumar named Sobha, Mahindra Lifespace, and Raymond Realty as companies that saw a strong response to their launches.
Collections from existing projects also improved for many listed developers during the period, Kumar said. That let companies pare down debt and strengthen their balance sheets heading into the festive season, when launch activity typically picks up.
“We are projecting around 5.8 lakh units of sales for this financial year, which is maybe 3-4% lower than last year’s. But as far as value is concerned, it could be around 10 to 12% more than what it was last year,” Kumar said.
Sales in the first half of this financial year across the top seven cities totalled 1.92 lakh housing units, a figure Kumar said fell 7% from the previous half-year. In value terms, sales rose about 1% over the same period, reflecting a broad shift toward higher-priced homes.
Mumbai is seeing heavy construction activity across the city, but Kumar said the market remains balanced rather than oversupplied. Demand for luxury and mid-segment housing has stayed strong, he said, while affordable housing has lagged due to rising land and construction costs.
Kumar also said ANAROCK’s feasibility studies for developers go beyond sales projections. The firm evaluates surrounding infrastructure and road capacity before recommending project pricing, since these factors influence what price a project can command in a given micro-market.
For the full interview, watch the accompanying video
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