77% of India's home sales came from just 4 cities. What makes them so popular?

In the first quarter of fiscal year 2026, according to JLL’s data, 77% of residential home sales in India were concentrated in just four cities, Delhi-National Capital Region (NCR), Mumbai, Bengaluru, and Pune. Together, these cities accounted for 70,631 units sold across the top seven cities in the nation. This level of market concentration reflects a growing trend in India’s housing sector, where a small number of urban centers continue to drive the bulk of transactions. The dominance of these four cities stems from their status as India’s primary economic engines. Each serves as a hub for employment, investment, and infrastructure development. Bengaluru remains a global tech capital, while Mumbai continues to lead in finance and commerce. Delhi-NCR functions as the political and administrative heart of the country, and Pune has emerged as a key player in manufacturing and technology. These cities benefit from extensive transportation networks, including metro systems, highways, and international airports, which enhance connectivity and accessibility for residents. The housing market in these cities is also marked by a shift toward premium properties. Homes priced above Rs 1 crore now account for 71% of all residential sales, compared to 59% a year earlier. This upward movement in pricing aligns with broader economic trends, such as rising disposable incomes and changing consumer preferences. Homebuyers are increasingly prioritizing quality, design, and location over mere affordability. Developers in these cities are responding by offering larger, more sophisticated living spaces equipped with modern amenities. Industry experts attribute this trend to several factors. Amit Modi, director of County Group, highlights the role of economic stability and investor confidence. He notes that the continued presence of robust job markets, coupled with substantial infrastructure development, ensures that these cities remain attractive to both residents and developers. “Buyers today are also placing greater emphasis on quality, location, timely delivery and the credibility of reputed developers,” Modi explains. However, other analysts argue that the concentration of sales is less about opportunity and more about scale. Manoj Dhanotiya, founder and CEO of Micro Mitti, points out that the 77% figure reflects a concentration of market power rather than a distribution of opportunities. “These four cities have the deepest developer balance sheets, the largest listed players and decades of brand-led absorption,” Dhanotiya states. He adds that Mumbai and Bengaluru alone accounted for nearly half of all sales, suggesting that the market is dominated by a few key players rather than widespread opportunity. Another notable trend is the increasing popularity of three-bedroom homes among buyers. According to Business Standard, 46% of homes currently on sale are three-bedroom units, indicating a strong demand for affordable yet spacious options. This suggests that while buyers are shifting towards premium properties, there is still a significant segment of the market focused on practicality and cost-effectiveness. The implications of this market concentration extend beyond individual cities. As buyers continue to favor these urban centers, developers are likely to focus further on high-end offerings, potentially leaving smaller cities and towns behind. Meanwhile, the rising cost of land and regulatory hurdles are pushing developers to stop launching homes below Rs 1 crore, effectively narrowing the range of available options in major metropolitan areas. As the housing market evolves, the dynamics between affordability, aspiration, and economic opportunity will continue to shape buyer behavior. Whether this trend signals a lasting transformation or a temporary phase remains to be seen. For now, the data clearly indicates that the majority of India’s home sales are still centered around a select group of cities, each with its own unique strengths and challenges.