India’s residential real estate market remained resilient in the second quarter of 2026, with home sales continuing to outpace new supply despite a sequential moderation in both demand and launches. According to PropTiger.com’s latest Real Insight Residential Q2 2026 report, 91,729 homes were sold across the country’s top eight residential markets during April–June 2026, compared with 89,161 new units launched during the quarter.
New launches declined 4.2% quarter-on-quarter (QoQ), while housing sales fell 4.4% QoQ. On a year-on-year (YoY) basis, however, new launches increased 6.0% from 84,138 units in Q2 2025, while sales declined 6.1% from the elevated base of 97,674 units recorded a year earlier.
The continued lead of sales over launches indicates that demand remains broadly balanced with supply, limiting the risk of a significant accumulation of unsold inventory.
Housing Prices Continue to Rise
Premiumisation remained a defining trend during Q2 2026. The sales-weighted average residential price across the eight markets increased 1.0% QoQ to ₹10,153 per sq ft, marking the second consecutive quarter in which the average crossed the ₹10,000-per-sq-ft threshold.
Residential prices increased on a YoY basis across all eight markets, highlighting continued pricing power among developers despite selective buyer sentiment.
MMR remained the largest residential market by both sales volume and value, recording 24,112 home sales at an average price of ₹15,422 per sq ft, representing a 20.4% YoY increase.
Bengaluru recorded the strongest annual price appreciation among the eight markets, with prices rising 26.0% to ₹9,931 per sq ft. This came despite a 9.2% YoY decline in housing sales.
Pune also continued its premiumisation trajectory, with average prices crossing ₹8,000 per sq ft for the first time. Prices reached ₹8,084 per sq ft, up 13.7% YoY.
Ahmedabad remained the most affordable market among the top eight cities at ₹5,295 per sq ft and recorded the strongest sequential price increase of 7.0%.
Kolkata Leads Sequential Sales Recovery
Kolkata emerged as the strongest performer in terms of sequential sales growth. Housing sales increased 22.0% QoQ to 3,517 units, supported by a recovery in buyer activity following the election period.
Chennai also delivered strong annual growth, with sales rising 36.0% YoY to 7,183 units. At the same time, new launches in the city declined sharply by 43.3% YoY to 4,314 units, indicating a more disciplined supply environment.
Hyderabad recorded 13,196 sales, up 14.6% YoY, while launches increased 21.6% to 13,074 units. The city’s IT, pharmaceutical and data-centre ecosystems continued to support residential demand.
Bengaluru recorded 14,186 sales, down 9.2% YoY, while new launches jumped 36.7% to 16,827 units. Delhi-NCR reported 9,352 sales, a 7.0% YoY decline, alongside 10,127 new launches.
Ahmedabad registered 7,541 sales, down 20.2% YoY, while Pune recorded 12,642 sales, a 20.8% decline. MMR’s sales fell 7.0% YoY to 24,112 units.
Technology-Led Markets Face Greater Caution
The report noted that the sequential moderation in sales was influenced by pre-monsoon seasonality and buyer caution amid the US–Iran conflict.
Technology-driven markets such as Bengaluru, Pune and Hyderabad were particularly affected in the sub-₹1 crore housing segment, where concerns surrounding AI-led workforce restructuring and technology-sector layoffs contributed to more cautious buyer sentiment.
Despite these pressures, the broader market continued to demonstrate resilience, with sales remaining ahead of new supply.
Stable Economic Conditions Support Market
The residential market also benefited from a relatively predictable macroeconomic environment. The RBI repo rate remained stable at 5.25%, while moderating inflation and continued government capital expenditure supported overall economic stability.
Recent GST reductions on cement, from 28% to 18%, and marble and granite, from 12% to 5%, have also been incorporated into project economics. According to the report, these measures provide an estimated 2–3% buffer against construction costs.
However, the report views this as a partial cost offset rather than a factor likely to result in lower residential prices.
“Q2 2026 confirms India’s residential market is maturing, not weakening,” said Prakash Tejwani, CEO, PropTiger.com. “Prices have held above ₹10,000 per square foot for two straight quarters even as buyers turn more selective. Kolkata and Chennai are showing genuine demand-led recovery, while Bengaluru and Pune continue to command pricing power despite tech-sector caution. Disciplined supply positions developers well for the festive quarter, though affordability remains the key variable to watch.”
Festive Season to Test Housing Demand
The outlook for Q3 2026 remains cautiously positive, with the festive season expected to provide an important test of underlying housing demand.
The report anticipates continued recovery in Kolkata, normalisation of supply in Chennai and sustained momentum in Bengaluru and Delhi-NCR. Infrastructure development is also expected to support residential activity, including Bengaluru Metro Phase 3, the Pune Line 3 extension and Chennai Metro Phase 2.
Affordability, however, remains a key concern as property prices continue to appreciate. Annual price growth currently ranges from 4.4% in Chennai to as high as 26.0% in Bengaluru, putting additional pressure on mid-income buyers.
With sales continuing to exceed launches and developers maintaining relatively disciplined supply, India’s housing market appears to be entering a more mature phase. The upcoming festive quarter is therefore expected to provide a crucial indication of whether buyer demand can maintain momentum amid rising prices and evolving affordability pressures.
Report Period: Q2 2026 (April–June 2026)
Source: Real INSIGHT – Residential Q2 2026, PropTiger.com, Aurum PropTech Limited
Cities Covered: Ahmedabad, Bengaluru, Chennai, Delhi-NCR, Hyderabad, Kolkata, MMR (Mumbai, Navi Mumbai and Thane), and Pune.
