Bengaluru Leads Housing Demand Growth While MMR Retains Market Dominance
India’s residential real estate sector recorded stable performance in the first quarter of 2026, with housing demand and supply maintaining near balance across major cities. According to the Real INSIGHT – Residential Q1 2026 report released by PropTiger, the market has moved into a more demand-driven and structurally mature phase after the rapid post-pandemic growth cycle.
The report noted that nearly 96,000 housing units were sold across the top eight cities during Q1 2026, while average residential prices crossed the ₹10,000 per sq ft mark for the first time.
Housing Market Records Stable Demand and Supply
During Q1 2026, the top eight cities recorded 93,065 new housing unit launches and 95,973 unit sales. Sequentially, supply increased by +1.1% while sales improved by +1.0% quarter-on-quarter.
On a yearly basis, housing supply remained nearly unchanged at -0.1%, while sales declined marginally by -2.2%, indicating market normalisation after strong activity levels seen in 2025.
The weighted average residential price touched ₹10,050 per sq ft during the quarter.
Prakash Tejwani stated:
“The Indian residential market has transitioned into a structurally more disciplined phase. Growth today is increasingly being driven by demand quality, inventory discipline, and buyer confidence rather than speculative expansion.”
Bengaluru Emerges as Strongest Performing Market
Bengaluru emerged as the top-performing residential market in Q1 2026 with 15,603 housing units sold, registering a +33% year-on-year increase and +12% sequential growth.
The city also maintained a balanced market structure, with 15,806 new units launched during the quarter, closely matching sales absorption levels.
According to the report, Bengaluru’s residential demand continued to benefit from GCC expansion and startup-driven employment growth.
MMR Continues to Lead Overall Market Activity
The Mumbai Metropolitan Region remained India’s largest residential market by both volume and value, recording 26,116 housing sales in Q1 2026.
Although yearly sales comparisons showed a decline of -14.9%, the report attributed this to high base effects from 2025 rather than weakening demand fundamentals.
Performance Across Other Major Cities
Chennai
Chennai recorded 6,841 housing unit sales during Q1 2026, reflecting +43.3% year-on-year growth supported by absorption of existing inventory.
Hyderabad
Hyderabad registered 13,297 unit sales, increasing +24.9% year-on-year.
Delhi NCR
Delhi NCR reported +11.4% year-on-year sales growth alongside +17.6% yearly price appreciation.
Pune
Pune posted +4.0% quarter-on-quarter sales growth and recorded the highest sequential price growth among all cities at 9%.
Kolkata and Ahmedabad
Kolkata and Ahmedabad witnessed temporary market moderation due to election cycles and demand normalisation respectively.
Housing Sales Data – Q1 2026
| City | Q1 2026 | Q1 2025 | YoY | Q4 2025 | QoQ |
|---|---|---|---|---|---|
| Bengaluru | 15603 | 11731 | 33% | 13931 | 12% |
| Chennai | 6841 | 4774 | 43% | 6973 | -2% |
| Hyderabad | 13297 | 10647 | 25% | 14453 | -8% |
| MMR | 26116 | 30705 | -15% | 25617 | 2% |
| Pune | 13565 | 17228 | -21% | 13043 | 4% |
| Delhi-NCR | 9447 | 8477 | 11% | 9222 | 2% |
| Kolkata | 2883 | 3803 | -24% | 3793 | -24% |
| Ahmedabad | 8221 | 10730 | -23% | 8017 | 3% |
| Total | 95973 | 98095 | -2% | 95049 | 1% |
Inventory and Pricing Trends
The report highlighted that all eight major cities recorded positive year-on-year price appreciation during Q1 2026.
Unsold inventory levels remained stable as fresh launches stayed closely aligned with housing absorption rates. A significant portion of new launches in markets such as MMR, Bengaluru, and Delhi NCR remained concentrated in premium and upper mid-income segments, contributing to rising average property prices.
Housing Supply Data – Q1 2026
| City | Q1 2026 | Q1 2025 | YoY | Q4 2025 | QoQ |
|---|---|---|---|---|---|
| Bengaluru | 15806 | 18183 | -13% | 15567 | 2% |
| Chennai | 4251 | 4070 | 4% | 5611 | -24% |
| Hyderabad | 12452 | 10156 | 23% | 12578 | -1% |
| MMR | 27189 | 31322 | -13% | 24717 | 10% |
| Pune | 15778 | 15543 | 2% | 15469 | 2% |
| Delhi-NCR | 10230 | 7952 | 29% | 10451 | -2% |
| Kolkata | 2697 | 3534 | -24% | 3043 | -11% |
| Ahmedabad | 4662 | 2384 | 96% | 4571 | 2% |
| Total | 93065 | 93144 | 0% | 92007 | 1% |
Q2 2026 Outlook
According to the report, the residential market outlook for Q2 2026 remains constructive with expectations of:
- Sequential growth of +2–4% across major metros
- Continued price appreciation of +4–8% year-on-year
- Infrastructure-led growth in emerging micro-markets across Bengaluru, Chennai, Hyderabad, and NCR
- Continued developer discipline supporting inventory balance and limiting oversupply risks
The report covered residential market trends across Ahmedabad, Bengaluru, Chennai, Delhi NCR, Hyderabad, Kolkata, MMR (Mumbai, Navi Mumbai, Thane), and Pune for the January–March 2026 period.
read full report: Insight_report_Jan_Mar_2026
