Key Points

New Delhi [India], August 29 (ANI): The residential real estate market, which saw a decline in the first quarter of FY26, has shown a pick-up over the past two months of June & July, according to data from a HSBC Global Investment Research report, citing Prop Equity.

As per the report, June witnessed strong value growth, led by better pricing and a shift towards premium projects. July recorded a 30 per cent year-on-year growth in both value and volume. It also marked the highest area sales for the month in 15 years. The report noted that this may be an early sign of recovery after a subdued FY25.

Three and four-bedroom homes now account for about 70 per cent of the value sold and over half of the overall market area. These apartments also formed 67 per cent of the value in 1QFY26, compared with 59 per cent in FY25.

While demand for large family homes remained strong, super luxury, "5-6BHK apartment sales declined, partly owing to fewer launches. This was the case across all cities except Hyderabad and Pune, where 5+BHK share continued to increase."

Inventory conditions remain stable despite a slight increase in the months of sales figures, now at 19.3 months compared with 18 a year ago. "However, absolute inventory in units and area has fallen below last year's level as launches were down. Within the market, unsold inventory in the 3-4BHK segment is up in absolute terms, but has fallen to 19.7 in terms of months of sale," the report said.

NCR, especially Gurugram, has posted record-breaking sales volumes, surpassing peaks last seen in 2011-13. Bangalore and Mumbai Metropolitan Region (MMR) also recorded their highest July sales after a muted FY25. "Decline in Hyderabad is also reversing after a very weak year, although this is partly on account of a low base," the report explained.

In NCR and Hyderabad, more than 90 per cent of sales were for 3BHK and above, while in Bangalore, this share stood at around 80 per cent. NCR remains the only region where all categories of housing, from smaller to larger formats, showed growth in the first quarter.

MMR, meanwhile, retained its position as the most balanced market, with 3-4BHK apartments making up 48 per cent of total absorption in Q1FY26, the highest ever for this category in the region.

- ANI