The area sold improved marginally by 1.5% to 653 msf in FY2026, majorly driven by increase in area sold by 14% in the luxury segment. The area sold in the mid segment witnessed a modest growth of 2% while the affordable segment reduced by 9%. ICRA projects the area sold in the top seven cities in India to rise by 2-5%, reaching 665 685 msf in FY2026, supported by sustained demand in the mid and luxury housing segments and an increasing preference for established and reputed developers. 

The launches in top seven cities in FY2026 rose by 9% to 732 msf mainly due to spillover from previous year due to delayed approvals in FY2025. The launches are further estimated to be grow by 4-7% to reach around 760-785 msf in FY2027, supported by comfortable unsold inventory levels.

Exhibit: Trend in annual sales, launches and replacement ratio in top seven cities

Source: Prop Equity and ICRA Research
Top seven cities: Bengaluru, Chennai, Hyderabad, Kolkata, MMR, NCR, Pune