Mumbai leads top 9 cities in residential sales value with 34% share in FY26: CREDAI-ANAROCK report
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The Mumbai Metropolitan Region dominates India's residential real estate market, securing 34% of sales value in FY26. Meanwhile, developers are urging the government to redefine 'affordable housing' based on area rather than the outdated ₹45 lakh price cap.
The Dominance of MMR in India’s Real Estate Landscape
The Indian real estate sector has undergone a massive transformation, reaching a valuation of approximately $600 billion in 2025, up from $120 billion in 2017. According to the recent CREDAI-ANAROCK report unveiled at the 24th CREDAI NATCON, the Mumbai Metropolitan Region (MMR) continues to lead this growth. Capturing a 34% share of the ₹6.3 lakh crore in sales across India’s top nine cities, MMR remains the undisputed titan of the residential market. This performance highlights the region's unique demand dynamics, where premium urbanization and infrastructure development continue to drive high-value transactions.
The Hierarchy of Top Markets
Following MMR, the Delhi-NCR region accounted for 22% of total sales value, while Bengaluru contributed 15%. These three regions together constitute a substantial portion of India's residential economic activity. The report further indicates that the total value of housing projects under construction surged to $430 billion in the last year, reflecting a nearly two-fold increase since 2019. This data underscores a robust construction pipeline and investor confidence, signaling that despite global economic pressures, domestic demand remains resilient.
The Crisis of Definition in Affordable Housing
Despite the overall growth in sales value, the sector faces a structural hurdle regarding affordable housing. CREDAI has explicitly stated that the current ₹45 lakh price cap, established in 2019, is no longer relevant in the contemporary market. Developers argue that the surge in land acquisition costs, combined with higher construction expenses and taxation, has made it economically unfeasible to deliver housing units under this price ceiling. Consequently, the supply of entry-level homes has stagnated, creating a disconnect between government policy and market realities.
Proposed Policy Shifts: Moving Beyond Price Caps
To address the supply crunch, the real estate industry is lobbying for a paradigm shift in how 'affordable housing' is defined. Rather than relying on a static monetary value that fails to account for inflation and geographical cost variations, developers are proposing a definition based on the carpet area of the units. This approach is intended to provide a more flexible framework that reflects the actual cost of production in different urban centers, allowing developers to align their project portfolios with realistic cost structures.
Future Outlook and Policy Expectations
Looking ahead, the industry is closely monitoring the government for potential policy interventions over the next six months. The hope is that by modernizing the definition of affordable housing, the government can incentivize developers to ramp up supply for the middle and lower-income segments. As India’s real estate market navigates these geopolitical and economic crosscurrents, the balance between high-value luxury sales and the necessity of inclusive housing will be the defining challenge for the sector through the remainder of the decade.
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