Premium home demand to lift property sales value 8-11% by FY27

Sales value across India's seven major residential markets is projected to reach ₹7.9 trillion in fiscal 2027, representing growth of 8-11 percent, according to a new analysis. This significant expansion in sales value stands in sharp contrast to the more modest growth in physical area sold, which is forecast to increase by only 2-5 percent over the same period.

The divergence between value and volume growth reflects a clear market trend toward premiumisation, with homebuyers increasingly gravitating toward higher-priced properties in desirable locations. This shift is reshaping the residential real estate landscape across major metropolitan areas, as developers and investors respond to changing consumer preferences and rising aspirations among India's growing affluent class.

The concentration of growth in the premium segment underscores the resilience of India's residential property market at the higher end, despite economic headwinds. As affordable and mid-segment housing faces slower growth, the premium category continues to attract capital and buyer interest, driving the overall market value upward.

The seven cities tracked in this analysis represent the largest and most developed residential markets in India, serving as barometers for national real estate trends. The projected trajectory suggests that quality and location will remain paramount factors driving buyer decisions in the coming years, with consumers willing to pay a premium for superior properties in established neighborhoods.