Housing Market Sees Uneven Growth Amid Premium Segment's Prolonged Momentum

Indian Real Estate Market Shifts Towards Premium Housing

The country's biggest listed real estate players have reported a shift in their growth model, moving away from focusing on volume sales towards premium housing and execution. An analysis of Q4 and FY26 results and management commentaries from key players reveals that the housing market has entered a new phase, where premium housing, execution, and market-share gains have become more important than volume growth.

Despite a 1% decline in residential sales in 75 Indian cities from FY25 to FY26, with 709,793 units sold in the latter year compared to 719,029 in the former, developers have managed to deliver strong profits and record booking values. This is largely due to rising prices and sustained demand for premium homes.

Key Market Trends

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According to real estate consultancy firm Liases Foras, property prices emerged as the primary growth driver in FY26, with average selling prices in key markets rising 6-8%. ABREL, for instance, has reported that luxury and premium housing continue to outperform affordable and mid-income segments. The company has recently launched a luxury redevelopment project in Mumbai's Khar West with a gross development value (GDV) of ₹1,631 crore and is evaluating a ₹60,000-crore business development pipeline, including ₹35,000 crore in the Mumbai Metropolitan Region.

Company-Specific Performances

Godrej Properties delivered one of the strongest performances in the sector, with net Q4 profit rising around 70% year-on-year to nearly ₹650 crore and revenue 64% to ₹3,458 crore. Prestige Estates reported a ten-fold jump in net profit at ₹250 crore, while income rose 2.6 times to ₹4,143 crore. Annual bookings surged 76% to a record ₹30,024 crore.

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Macrotech Developers (Lodha) reported a 23% rise in Q4 pre-sales, 11.6% growth in revenue at ₹4,714 crore while net profit crossed ₹1,000 crore. DLF, on the other hand, was an outlier, entering a phase of stabilisation. Net profit was flat at ₹1,269 crore, while revenue slipped 42% to ₹1,814 crore in the March quarter because of lower project recognition. Annual bookings declined to ₹20,143 crore from ₹21,223 crore.

Sobha emerged as a recovery story, with net profit more than doubling to ₹91.8 crore and revenue rising about 60%.

Consolidation Phase

The earnings season suggests that Indian real estate is moving from a cyclical recovery phase into a structural consolidation cycle. Large developers are increasingly capturing demand, as buyers prefer branded players with stronger execution records and balance sheets. Godrej Properties and Prestige Estates have emerged as the fastest-growing players in FY26, supported by aggressive expansion and execution. Lodha continues to deliver consistent growth across cycles. ABREL and Mahindra Lifespaces are positioning themselves for the next phase through premium-focused pipelines, while DLF remains financially strong but is transitioning into a more mature growth phase.