Residential Real Estate Shows Renewed Growth in Q1FY26

In an unexpected turnaround, the residential real estate market has demonstrated a promising recovery in the initial months of FY26, following a downturn in the first quarter. A recent HSBC Global Investment Research report, leveraging data from Prop Equity, highlights a significant uptrend during June and July. The report cites strong value growth driven by higher pricing and a marked shift towards premium projects, with July witnessing a 30% year-on-year leap in both value and volume, marking the highest area sales for the month in 15 years.

A remarkable surge was observed in the market for three and four-bedroom homes, which now represent approximately 70% of value and over half of the total market area. The demand for spacious family homes remains robust, although the segment for super-luxury 5-6BHK units saw a decline, attributed in part to fewer new launches. However, cities like Hyderabad and Pune bucked this trend, showing an increase in the 5+BHK category.

Despite a slight uptick in sales inventory to 19.3 months from 18 months last year, overall inventory levels, in units and area, have decreased due to fewer launches. Remarkably, Gurugram and the NCR region posted sales volumes that surpassed historical peaks last seen in 2011-13. Meanwhile, Bangalore and the Mumbai Metropolitan Region (MMR) reported their strongest July sales following a subdued FY25, with MMR noted for its balanced market conditions.

(With inputs from agencies.)