Buying a House in 2026: Here is How 2025 Housing Trends Could Affect Your Budget

If you are planning to buy a house in 2026, understanding what happened in the housing market in 2025 can help you budget better. While home sales slowed across most major cities last year, property prices continued to rise, making affordability a key concern for buyers moving into the new year.

Home Prices Rose Nearly 8%in2025 

Across India’s top seven cities, average home prices increased by 8% in 2025, rising from ₹8,590 per sq ft at the end of 2024 to around ₹9,260 per sq ft by Q4 2025. This price growth came despite lower housing sales and interest rate cuts during the year.

For homebuyers in 2026, this means entry prices are already higher, and waiting for sharp price corrections may not be realistic in most cities.

Housing Sales Declined by 14% YoY in 2025

Housing sales across the top cities declined by 14% year-on-year in 2025. Hyderabad, Pune, and the Mumbai Metropolitan Region recorded the steepest drops. Chennai stood out as the only city to see higher sales, suggesting stronger local demand.

Lower sales usually improve buyer bargaining power. However, in 2025, this did not translate into lower prices, mainly due to higher construction and land costs.

Cities Like Chennai and Kolkata Dominated New Launches 

Developers launched around 4.19 lakh new homes in 2025, broadly in line with the previous year. Supply slowed in cities like Hyderabad but rose in Chennai, Kolkata, and NCR.

For buyers in 2026, this means options will vary by city. Some markets may offer more choices and flexible payment plans, while others may remain tight on supply.

Homes Are Bigger but Cost More

A key shift in 2025 was the growing share of premium homes. Properties priced above ₹2.5 crore made up 21% of new supply, up from 18% a year earlier. At the same time, developers focused on larger homes with better layouts and amenities.

This trend can push overall budgets higher, even in mid-income segments, due to larger unit sizes and added features.

What This Means for Your 2026 Budget

If you are buying a house in 2026, you may need to plan for higher base prices, larger down payments, and increased registration and furnishing costs. However, slower sales could help buyers negotiate on payment terms, add-ons, or possession timelines.

Read more: How Much Will an Ather Electric Scooter Cost in 2026?

Conclusion

The housing market in 2025 showed that prices can rise even when sales slow. For homebuyers in 2026, careful budgeting, city-specific research, and realistic expectations will be key to making a well-timed and affordable purchase.

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