New Delhi, July 9 (IANS) India’s residential market saw its strongest first‑half sales performances during the first half this year, as residential sales across eight major cities stood at 171,471 units, a marginal 1 per cent increase from the same period in previous year, a report said on Thursday.

The report from Knight Frank India said the real estate activity settled into a phase of consolidation, while developers launched 1,87,350 units, up 4 per cent year‑on‑year. The near‑flat sales trajectory after four years of recovery indicated stabilisation rather than renewed growth, the report added.

Stable economic fundamentals, infrastructure-led urban development, steady employment conditions have kept end-user demand buoyant supporting residential activity across India’s leading markets. Meanwhile, developers maintained a disciplined approach to new supply, enabling the market to remain fundamentally balanced despite evolving buyer preferences and a higher pricing environment.

The report said that H1 2026 marked a shift toward premium housing as homes priced above Rs 10 million accounted for 54 per cent of total sales, up from 49 per cent a year earlier.

It reflected a genuine premium demand from higher-income households, it also showcases the progressive erosion of the affordable segment, as several years of sustained price appreciation have repriced mid-tier inventory into higher brackets.

New supply at lower price points have remained constrained, the report said, adding that the market therefore remains historically active in absolute terms even as the breadth of its buyer base narrows.

“While growth has reduced following a steep recovery from pandemic lows, the market’s underlying fundamentals remain firmly intact. Premium homes now account for more than half of all residential sales, reflecting rising household incomes, evolving buyer aspirations and growing confidence in long-term homeownership,” said Shishir Baijal, International Partner, Chairman and Managing Director, Knight Frank India.

New supply has exceeded sales in most markets across successive periods, a trend in place since 2022, with the launches-to-sales gap at around 15,879 units during the half-year.

Residential prices rose across markets, though at a more measured pace than in 2023–24. Mumbai remained the most expensive residential market with average prices at Rs 36,881 per sq. ft., followed by Delhi at Rs 26,027 and Gurugram at Rs 18,354 per sq. ft.

–IANS

aar/na