New Delhi: The residential real estate market, which had fallen in the first quarter of FY26, has improved in the previous two quarters. According to statistics from a HSBC Global Investment Research study citing Prop Equity, the months of June and July.
According to the study, June saw significant value growth, driven by improved pricing and a shift toward premium projects. July saw a 30% year-on-year increase in both value and volume. It also had the greatest area sales for the month in 15 years. According to the study, this might be an early indication of recovery following a bleak FY25.
Three- and four-bedroom residences currently account for around 70% of the value sold and more than half of the total market region. These flats also accounted for 67% of the value in 1QFY26, up from 59% in FY25.
While demand for big family houses remained strong, super-luxury, 56BHK apartment sales fell, owing in part to fewer launches. Except for Hyderabad and Pune, where the 5+BHK share grew, this was the case across all cities.
Despite a small improvement in months of sales figures, inventory levels remained steady at 19.3 months, up from 18 months the previous year. However, total inventory in units and area has decreased below last year's level due to fewer launches. According to the research, unsold inventory in the 34BHK category has increased in absolute terms but declined to 19.7 months of sales.
NCR, particularly Gurugram, has witnessed record-breaking sales volumes, exceeding those set in 2011-13. Bangalore and Mumbai Metropolitan Region (MMR) both had record-breaking July sales. Sales are recovering after a subdued FY25. According to the study, the fall in Hyderabad is also reversing, albeit in part due to a low foundation.
More than 90% of houses sold in NCR and Hyderabad were 3BHK or more, whereas in Bangalore, this figure was approximately 80%. In the first quarter, NCR was the only region to see growth across all types of property, from little to large formats.
Meanwhile, MMR maintained its status as the most balanced market, with 34BHK homes accounting for 48% of total absorption in Q1FY26, the highest. Ever for this category in the area.
