India Residential Unfazed to date by AI and Middle East risks

Research evidence excerpt

India Residential Unfazed to date by AI and Middle East risks

26 May 2026

India Residential EquitiesREMD

Unfazed to date by AI and Middle East risks India

◆ Residential demand remains resilient despite broader concerns

Puneet Gulati*, CFA

on AI-led job losses and the Middle East conflict Senior Analyst, India Energy, Property & Infra

HSBC Securities and Capital Markets (India) Private Limited

◆ Developers are now pivoting towards selling higher priced puneetgulati@hsbc.co.in+91 82 9189 7591

homes of lower sizes as realizations in luxury moderate Sambhav Kela*

Analyst, India Real Estate & Power

◆ South Indian cities performing better vs a slowing NCR market; HSBC Securities and Capital Markets (India) Private Limited

inventory beginning to inch up at the margin but still comfortable sambhav.kela@hsbc.co.in+91 22 40891464

Homebuyers (and brokers) appear unfazed by AI and Middle East risks even as

* Employed by a non-US affiliate of HSBC Securities (USA)

investors remain cautious. Despite heightened concerns of a significant market slowdown Inc, and is not registered/ qualified pursuant to FINRA

post Q3FY26 where residential sales saw a decline, the market witnessed signs of recovery l ti

with sales value and volume growing 9% and 1% y-o-y respectively in Q4FY26. This

momentum continued into April with 8%/13% y-o-y volume/ value growth, even as investors

worry about purchase deferrals due to the ongoing Middle East conflict. This resilience

came even as launch volumes fell 9% y-o-y in the month.

Luxury segment still strong but developers eyeing incremental growth from mid-

premium segment. FY26 and Q4FY26 saw a further consolidation of the market towards

the luxury segment with premium ticket sized homes now accounting for 66%/69% share of