Real estate consultant Square Yards released data on Tuesday showing a mixed performance in India's residential property market, with registration volumes declining while transaction values increased significantly across nine major cities till December 25. The data encompasses transactions in both primary and secondary markets across key metropolitan areas including Mumbai, Thane, Pune, Navi Mumbai, Bengaluru, Hyderabad, Noida, Greater Noida, and Ghaziabad.

Market Performance Overview

The residential property registration data reveals contrasting trends in volume and value metrics:

The decline in unit registrations contrasted sharply with the significant increase in transaction values, indicating a shift toward higher-value properties in India's prime residential markets.

Premium Housing Drives Value Growth

Tanuj Shori, Founder & CEO of Square Yards, attributed the value increase to the dominance of premium and luxury housing segments. "Amid a sharp rise in the number of wealthy Indians with higher disposable incomes, premium and luxury housing dominated value contribution, particularly across markets such as the MMR (Mumbai Metropolitan Region)," Shori explained.

The sustained price appreciation over the last three to five years has begun testing affordability thresholds in several premium micro-markets. However, Shori noted that while demand remains structurally resilient, incremental growth in the luxury segment is expected to moderate in the coming year, indicating a stabilisation phase rather than a slowdown.

Industry Expert Perspectives

Industry leaders have highlighted key market trends driving the current performance:

Santosh Agarwal noted that growth is being driven by sustained demand for premium and larger homes, higher average ticket sizes, and a clear shift toward quality, branded developments. "Both end-users and investors are prioritising well-located projects, superior amenities, and long-term value over volume-led buying," Agarwal added.

Market Outlook

Square Yards projects that the housing market is well positioned for sustainable progress in the coming year. The outlook is supported by disciplined supply pipelines, a maturing buyer base, and a gradual re-balancing of demand towards the mid-market segment. This indicates a potential shift from the current premium-focused trend toward more accessible housing segments.

Square Yards, a prominent player in the Indian real estate and financial services sector, has reported impressive financial results for Q2FY26, marking its fourth consecutive profitable quarter. The company's performance highlights significant growth across various financial metrics.

Strong Revenue Growth

Square Yards has demonstrated robust revenue growth, both for the quarter and the first half of the fiscal year:

Profitability and Financial Performance

The company's financial performance shows a marked improvement in profitability:

• EBITDA for H1FY26: ₹23.00 crore
• EBITDA for H1FY25: ₹49.00 crore loss

This turnaround in EBITDA underscores Square Yards' successful efforts in achieving profitability.

Business Segment Performance

Square Yards' business segments have shown varying contributions to the overall revenue:

• Financial Services: Contributed 60% of total revenue in H1FY26
• India Business:
  • Grew by 53% year-over-year
  • Now accounts for 85% of overall revenue

Key Financial Metrics for Q2FY26

Long-term Performance Indicators

Square Yards has also achieved significant milestones in its long-term financial performance:

• Trailing 12-month Revenue: Exceeded $200 million
• Trailing 12-month EBITDA: Over $13 million
• Four-year Revenue CAGR: 55%

These results demonstrate Square Yards' consistent growth trajectory and improving financial health. The company's ability to maintain profitability for four consecutive quarters, coupled with strong revenue growth across its business segments, indicates a robust business model and effective execution of its strategies.

The significant contribution from the financial services segment and the substantial growth in the India business highlight the company's successful diversification and strong market position in its home country. The improvement in gross margins also suggests enhanced operational efficiency.