India's Q1 FY27 housing prices climb 6% as Delhi and Bengaluru lead

According to a Kotak Institutional Equities analysis, Indian real-estate prices rose 6% YoY in Q1 FY27, with New Delhi, Noida, Chennai, Greater Noida and Bengaluru posting the biggest gains. Average realization hit Rs 9,629 per sq ft, a 6% increase over the prior year but a 2% decline from the last quarter. Residential sales value rose 9% YoY, supported by price growth and a 3% rise in sales volume, even as total sales area slipped 3% sequentially.

Project launches dropped 14% YoY and 16% QoQ to 242 million sq ft, tightening new supply. While the National Capital Region saw a sharp fall in both sales and launches, markets like Mumbai, Bengaluru, and Hyderabad posted higher sales aided by fresh launches. The report warns that recent industry expansion is largely price-driven and calls for sustained volume growth to confirm demand strength. Unsold housing stock reached 1.8 billion sq ft, equivalent to about 1.9 years of trailing sales.