India's Housing Demand Turns Selective Ahead of the Festive Season

what happened

India's housing market enters the festive season with demand holding steady, but buyers are growing more selective about developers, location and build quality. According to Anarock Research, sales across the top seven cities rose 3% year on year in July-September 2026 to 100,220 units, while their value increased 2% to Rs 1.55 lakh crore. Average prices per sq ft rose 7% to Rs 9,714.

Developers say buyers are more confident but see no sharp festive surge. Executives at Lloyds Realty Developers and Signature Global described the recovery as mostly underlying demand, with the post-Diwali quarter expected to show whether it is structural. In the premium segment, buyers increasingly weigh architecture, layout and craftsmanship rather than price and size alone.

Knight Frank data show homes priced above Rs 1 crore accounted for 55% of sales in January-September 2026, up from 50% a year earlier. CREDAI chairman Shekhar Patel argues that the shift toward premium homes is partly a result of the affordable-housing cap of Rs 45 lakh, unchanged since 2017.

why it matters

For Indian real estate and related listed developers, the key point is that demand is holding but shifting toward pricier, higher-quality projects. If prices keep outpacing incomes, affordability for mass-market buyers could narrow, which matters when assessing developer stocks.

market impact

Indian real estate: steady demand shifting to premium — supports developers with strong reputations

instruments