Housing prices rise 6% YoY despite sales dip; Gurugram, Noida lead Delhi-NCR real estate growth

India’s residential real estate market continued to see price appreciation in the first quarter of FY27, with housing prices rising 6% year-on-year (YoY) across the country, according to a Kotak Institutional Equities report cited by ANI. The growth was led by key markets including New Delhi, Noida, Chennai, Greater Noida and Bengaluru, highlighting continued demand in major urban centres.

However, the rise in prices came alongside a moderation in transaction volumes and new supply. All-India residential sales stood at 247 million sq ft in Q1 FY27, up 3% YoY but down 3% quarter-on-quarter (QoQ). Meanwhile, new project launches declined to 242 million sq ft, falling 14% YoY and 16% QoQ.

READ THIS: Real estate faces a private credit paradox: Biggest deployment, highest default risk, shows report

Housing prices rise as sales growth moderates

The latest numbers point to a market where property prices continue to remain firm even as the pace of sales and new launches moderates. The combination of higher prices and lower new supply indicates that developers are maintaining supply discipline while demand remains concentrated in established and premium locations.

The Kotak report also noted that most projects in Bengaluru and Gurgaon have recorded higher price compound annual growth rates over the past few years, contributing to higher real estate realisations across major micro-markets.

The trend is particularly visible across Delhi-NCR, where infrastructure expansion, improved connectivity and increasing commercial activity are supporting residential demand.

Gurugram real estate sees premiumisation

Rishabh Periwal, Sr Vice President, Pioneer Urban Land and Infrastructure Ltd., said Gurugram’s growth goes beyond simple price appreciation.

“While national figures showcase a steady upward trend in different cities across the country, our focus is on Gurugram real estate, which is growing rapidly. What we are witnessing isn’t just price appreciation. It's a complete development across both residential and commercial sectors. On the residential front, premium and luxury developments are driving the market. Buyers prioritise connected, amenity rich spaces from trusted brands. Gurugram’s commercial real estate remains a powerhouse, fueled by robust demand for Grade A office spaces and premium retail hubs. For anyone seeking long term valuation, be it buyer or developer, Delhi NCR is no longer just participating in the real estate rally, but actively leading it.”

DON'T MISS: DDA’s Raksha Bandhan gift: 1,287 Narela flats on offer at 25% discount, check details here

Gurugram has increasingly become a major premium housing market within NCR, with buyers showing greater preference for projects offering connectivity, lifestyle amenities and access to employment and commercial hubs.

Gurugram, Noida and Faridabad

Manik Malik, President & CEO, BPTP Limited, said the sustained rise in housing prices reflects a structural change in the market rather than a temporary upswing.

“The sustained appreciation in residential prices across key markets reflects a structural shift rather than a cyclical upswing. Homebuyers today are prioritising locations backed by strong infrastructure, connectivity and social ecosystem, resulting in long-term value creation. At the same time, improving rental yields indicate a healthy balance between end-user demand and investor confidence. Markets such as Gurugram, Noida and Faridabad are benefiting from this trend, driven by continued infrastructure investments, quality developments and evolving buyer aspirations. We believe this momentum is supported by strong market fundamentals and will continue to favour well-planned micro-markets with long-term growth potential.”

Sales up 3% YoY, down 3% QoQ

The 247 million sq ft of residential sales recorded nationally during Q1 FY27 represents a 3% YoY increase, but a 3% sequential decline from the previous quarter. This suggests that while underlying demand remains relatively resilient, the market has experienced some moderation compared with Q4 FY26.

New supply saw a sharper correction. Developers launched around 242 million sq ft of new residential projects during the quarter, representing a 14% YoY decline and 16% QoQ decline.

DO READ: Tenants in Noida societies cry foul: Residents on rent made to pay extra for gym, pool

The gap between sales and launches also points towards a more measured approach to new supply, particularly as developers focus on projects and locations where demand and pricing remain stronger.

What the data means for NCR buyers

For Delhi-NCR, the combination of price appreciation, infrastructure development and premiumisation is strengthening the position of markets such as Gurugram, Noida and Faridabad.

While the national housing market recorded 6% YoY price growth, the continued rise in premium and luxury housing indicates that headline price growth does not fully capture the divergence between individual micro-markets.

ALSO READ: ₹8,585 cr Jewar Road project: Why Greater Noida could emerge as North India’s next growth hub

For buyers, factors such as connectivity, infrastructure, social amenities and rental potential are increasingly influencing property decisions. For developers, the moderation in new launches suggests a greater focus on carefully selected projects rather than simply adding supply.

With residential sales at 247 million sq ft, despite a 3% QoQ decline, and prices continuing to rise, the Q1 FY27 data suggests that India’s housing market remains fundamentally strong but is entering a more selective phase of growth.