Real estate prices rise 6% in Q1 FY27, led by Delhi, Noida & Chennai: Report
Real estate prices in India rose by 6% in the first quarter of FY27, driven by strong performance in cities like Delhi, Noida, and Chennai. While pricing growth helped boost sales value by 9%, overall sales volumes remained subdued due to a decline in new project launches.
Why it matters
The data indicates a market shift where growth is sustained by price appreciation rather than increased demand, signaling potential risks for the Indian property sector.
Real estate prices across India rose 6% year-on-year in the first quarter of FY27, with New Delhi, Noida, Chennai, Greater Noida and Bengaluru emerging as the key markets driving the increase, according to a Kotak Institutional Equities report.The rise in prices helped offset subdued sales volumes, with residential sales value increasing 9% YoY during the quarter. Average realisation climbed to Rs 9,629 per sq ft, up 6% YoY but down 2% sequentially."Residential sales value grew 9% YoY 1QFY27, led by pricing growth of 6% YoY and volume growth of 3% YoY," the report stated, as quoted by ANI.Residential sales across India stood at 247 million sq ft during the quarter, up 3% YoY but down 3% from the previous quarter.
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