Residential sales hit 15-year high in July; NCR, Bengaluru lead recovery

India’s residential real estate market is showing signs of revival after a slowdown in the first quarter of FY26, with sales in June and July reflecting strong momentum both in value and volume. According to a report by HSBC Global Investment Research, citing PropEquity data, July 2025 recorded the highest area sales for the month in the past 15 years, aided by new launches and strong demand for premium and larger apartments.

The report noted that 3-4 BHK units now dominate the market, accounting for 70 per cent of total value sold, while NCR and Bengaluru led absorption, supported by rising realisations and larger apartment sizes that remain near record highs.

In terms of value, premium apartments were 67 per cent of value sold in Q1 compared to 59 per cent in FY25.

“Even in terms of area, they now constitute 51 per cent of the overall market. This is the key segment for our listed real estate developers coverage,” the report stated.

From a market perspective, average realisation and average size of apartments sold remain strong and close to all-time highs.

Within markets, NCR and Bengaluru witnessed strong growth in absorption.

NCR maintained momentum, with Gurugram continuing to make new highs in volumes sold (for the past three months), surpassing the highs of 2011-13, the report highlighted.

Bengaluru and Mumbai Metropolitan Region (MMR) are also seeing highest highest-ever area sold (for July) after a tepid FY25.

Decline in Hyderabad is also reversing after a very weak year, although this is partly on account of a low base.

“In terms of the nature of demand for cities, 90 per cent of total absorption in NCR and Hyderabad is now 3BHK and above, while in Bangalore this category comprises 80 per cent,” the report stated.

Interestingly, NCR is the only market where products of all sizes saw demand grow during Q1.

MMR remains the most balanced market, with 3-4BHK comprising 48 per cent of total absorption for Q1FY26, while we note this is a high for the city in the category, according to the report.

–IANS