India's mid-income housing segment (₹10-30 million average ticket size) recorded an 8% quarter-on-quarter (q-o-q) and 16% year-on-year (y-o-y) increase in sales volumes during the fourth quarter of fiscal year 2026, according to a report by Elara Capital. The luxury segment (above ₹30 million) also expanded, rising 12% q-o-q and 9% y-o-y. In contrast, the affordable housing segment (below ₹10 million) faced significant headwinds, with sales plunging 7% q-o-q and 21% y-o-y.
Quarterly Performance Overview
For Q4 FY26, Tier-I cities experienced a 4% q-o-q increase in housing absorption volume and a flat 1% y-o-y growth, heavily anchored by the mid-income and luxury segments. Bengaluru and Kolkata stood out as the leading markets, both clocking double-digit expansions of 11-23% across both q-o-q and y-o-y metrics.
| Segment | Average Ticket Size | Q-o-Q Change | Y-o-Y Change |
|---|---|---|---|
| Mid-income | ₹10-30 million | +8% | +16% |
| Luxury | >₹30 million | +12% | +9% |
| Affordable | <₹10 million | -7% | -21% |
Geographic Variations
Bengaluru registered the sharpest quarterly rise in new launch take rates, moving up 12 percentage points q-o-q and finishing 8 percentage points higher than its trailing eight-quarter average, the report noted. Conversely, reduced speculative activity in the National Capital Region (NCR) pulled down the aggregate take rate. Gurugram experienced a sharp decline, with its individual take rate dropping by approximately 20 percentage points, contributing to a broader 600 basis point drop across NCR compared to the eight-quarter average.
"Inventory overhang across markets was broadly stable q-o-q but Gurugram saw an uptick of three months where we believe demand momentum is currently strong only for projects that have a pull factor vs push," the report said.
The report detailed a wider annual divergence in luxury micro-markets during FY26. Gurugram was an outlier, with a 15% y-o-y drop in luxury sales volume; the share of luxury in both overall supply and absorption declined 16 ppt y-o-y and 2 ppt y-o-y, respectively. Bengaluru witnessed the highest increase in luxury sales volume, up 55% y-o-y, accounting for approximately 30% of luxury sales volume growth in FY26.
Developer Market Share
For the full fiscal year 2026, the aggregate market share by absorption volume and value for large, organised developers increased by up to 200 basis points y-o-y. Listed firms continued to outpace the broader industry, with their new launch take rates exceeding the industry average by 15 percentage points in Tier-I cities. This trend underpinned distinct market share gains: presales for listed firms jumped 21% y-o-y in FY26, comfortably beating the broader industry's value growth of 8%. Strong execution was reflected in an 18% y-o-y growth in collections, while the inventory overhang for listed developers settled at 13 months compared to 19 months for unlisted entities.
Commercial and Retail Trends
In the office segment, gross leasing maintained its quarterly run-rate above 20 million square feet, though net absorption fell 26% y-o-y and 27% q-o-q. For the retail segment, vacancy trends improved across most key markets, though Chennai opposed the trend with a 0.5 percentage point quarterly increase, and NCR vacancy trended up 1 percentage point q-o-q.
The Elara Capital report, published on June 29, 2026, highlights the ongoing shift toward mid-income and luxury housing, with listed developers strengthening their market position despite broader headwinds in affordable housing.
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