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Residential sales value across India’s top seven cities is expected to grow by 8–11% in FY27, reaching around INR 7.9 trillion, even as the area sold is projected to increase by only 2–5%, according to ICRA. The rating agency attributes the expected value growth primarily to premiumisation, with homebuyers increasingly opting for higher-priced properties. The outlook follows a period in which sales values have continued to rise despite more moderate growth in volumes. Developers are also responding to changing buyer preferences by increasing their focus on premium and luxury housing. The trend is expected to support revenue growth for leading residential developers during FY27, although the divergence between sales value and volumes indicates that higher ticket sizes, rather than a substantial expansion in the quantum of housing sold, will remain the principal driver.
Residential sales value across India’s top seven cities is expected to increase by 8–11% in FY27, with premiumisation emerging as the principal driver of growth, according to an ICRA assessment released on Wednesday. The rating agency expects the combined value of residential sales in these markets to reach around INR 7.9 trillion during the financial year, while the area sold is projected to rise by only 2–5%.
The projected divergence between sales value and volume reflects the continuing shift in buyer preferences towards higher-priced homes. According to ICRA, the increasing contribution of premium housing is expected to lift overall sales value even as the expansion in the physical area transacted remains comparatively modest.
The premiumisation trend has become increasingly visible in India’s residential market, with developers placing greater emphasis on larger and higher-value homes. Data from the broader market has also indicated that sales values have remained comparatively resilient despite moderation in unit volumes. In 2025, housing sales across the top seven cities fell in volume terms, while the value of homes sold increased, reflecting a greater share of premium and luxury properties in overall transactions.
The FY27 outlook therefore points towards a value-led residential market, in which changes in the composition of demand are expected to have a greater influence on developer sales than a significant increase in the number of homes sold. ICRA’s estimate places the expected growth in sales value at 8–11%, compared with only 2–5% growth in area sold.
The shift towards premium housing has also influenced the strategies of major developers, who have increasingly focused on projects positioned in higher price segments. Market data shows that homes priced above INR 1 crore accounted for around half of sales in the top eight cities in 2025, while demand in lower-priced segments weakened. This change in the composition of transactions has contributed to the widening gap between growth in housing value and unit volumes.
The outlook also comes against a backdrop of continued consolidation among organised residential developers. Larger companies have increasingly benefited from buyer preference for established brands, delivery track records and higher-quality projects. This has encouraged developers with stronger balance sheets and execution capabilities to expand their premium housing portfolios.
ICRA’s assessment indicates that premiumisation will remain an important factor supporting residential sales value in FY27. The expected INR 7.9 trillion in sales across the top seven cities would represent growth of up to 11%, despite the relatively limited 2–5% increase expected in the area sold.
The trend suggests that the residential market’s next phase of growth is likely to be driven more by the value of individual transactions and the increasing share of premium homes than by a substantial increase in overall housing volumes. For developers, this places greater emphasis on the ability to cater to buyers moving towards higher-value residential products while maintaining sales momentum in a market where volume growth is expected to remain moderate.
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