September 1, 2025: India’s residential property sector, which faced a downturn in FY25, is beginning to show signs of revival, according to HSBC Global Investment Research, citing data from Prop Equity. The market witnessed a sharp pick-up in recent months, with July 2025 marking the strongest sales for the month in 15 years.
While the first quarter of FY26 was muted, value growth surged in June on the back of improved realisations and a stronger premium mix. The momentum carried into July, which saw a 30% year-on-year increase in both value and volume. HSBC noted that part of the growth was aided by a low base following last year’s election-related disruptions, but added that the trends suggest the early stages of a broader recovery.
Premium apartments remain the backbone of activity, accounting for nearly 70% of sales value in Q1 FY26. Demand was concentrated in 3–4 BHK homes, while sales of super-luxury 5–6 BHK units dipped due to fewer launches, except in Hyderabad and Pune. Overall, premium homes formed 67% of sales value in Q1, up from 59% in FY25. HSBC described this segment as a key driver for listed developers, with both realisations and apartment sizes near all-time highs.
Despite a slight rise in the “months of sales” metric to 19.3 from 18 a year earlier, unsold inventory declined on an annual basis due to limited new launches. Sales velocity in the 3–4 BHK category also improved.
Regionally, NCR led by Gurugram, Bangalore, and the Mumbai Metropolitan Region posted record July sales, while Hyderabad showed signs of revival after last year’s slump. HSBC concluded that resilient pricing, premium demand, and supportive inventory dynamics point towards the Indian residential market entering a new growth phase.
Source: Economic Times
