India’s Housing Market Holds Firm as Home Prices Rise 6 pc in Q1 FY27

India’s Housing Market Holds Firm as Home Prices Rise 6 pc in Q1 FY27

New Delhi, Aug 21: India’s housing market continued to show resilience in the first quarter of FY27, with home prices rising 6 per cent year-on-year, according to a report by Kotak.

The increase was supported by stronger pricing across several major property markets. The report also found that the overall value of housing sales grew 9 per cent during the quarter, even though the number of homes sold remained relatively moderate.

The latest figures suggest that developers are maintaining pricing strength even as buyers remain selective. Limited new project launches and steady demand for homes in key cities have also supported property prices.

However, the market is not growing uniformly across the country. Some major cities recorded stronger activity, while others saw slower sales. This indicates that buyers are increasingly focusing on location, quality and pricing before making purchase decisions.

The trend also highlights a changing housing market where rising prices are contributing more to growth than a sharp increase in sales volumes. For homebuyers, this could mean continued pressure on affordability, particularly in well-established urban markets.

Overall, the latest data points to a stable but selective housing market. Sustained growth in sales volumes and new demand will be important for maintaining the sector’s momentum in the coming quarters.