India, Sept. 11 -- Housing prices have risen by nearly 10% annually from FY2023 to FY2025, impacting homebuyer affordability. In FY2025 alone, average selling prices (ASP) jumped 16% and are projected to rise another 6-8% in FY2026. As a result, ICRA expects housing sales across India's top seven cities to decline by 0-3%, reaching 620-640 million sq ft in FY2026.

A material rise in the ASP of residential units by more than 10% annually from FY2023 to FY2025 continues to pose a drag on affordability of buyers. Owing to this, as well as expected moderation in sales velocity, ICRA projects the area sold in the top seven cities in India to decline by 0-3%, reaching 620-640 million square feet (msf) in FY2026, it noted in its analysis.

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